He was successful in many ways. Firstly, he abolished the existing currency (which was the mark) and set up a new one which was named the Rentenmark. He then later introduced a new independent national bank, the Reichsbank, and they were given control of the currency. These changes made Germany more confident as it helped their economy to recover from hyperinflation. This was a great idea as the old mark was worth next to nothing and everyone was suffering because of this – people were starving because they couldn’t afford much refreshments, they couldn’t afford clothes or other necessaries!
During April 1924, Stresemann agreed to something called the ‘Dawes Plan’. This addressed the reparations issue that was caused by the Treaty of Versailles. Charles Dawes, who was an American banker, had been asked by the allies to resolve Germany’s non-payment under his plan which consisted of the following things:
• annual payments ere to be reduced to an affordable level • it was also agreed that american banks would invest in the german industry • industrial output would double during the period of 1923-1928 – fuelled by us loans • imports and exports increased • employment levels risen • government income from taxation improved
This was a great plan and the Germans were attached to it, however, there were some drawbacks. Some of these drawbacks included the extreme and racist political parties that hated the Treaty of Versailles. These parties were furious that Germany had again, agreed to pay reparations. Furthermore, the fragile economic recovery depended on American loans.
Stresemann made further progress with reparations five years later, when he then decided to agree to another plan which was called the ‘young plan’. The young plan reduced the total reparations debt from 6.6 billion to 2 billion. Moreover, Germany was given a longer time to pay; they were given 59 years to pay this debt – easy! This made it possible for Germany to lower taxes and released spending power, which boosted German industry and employment. However, this plan still had its drawbacks. The annual payments were still a massive sum of £50 million a year! Several of the extreme political parties were incensed and Adolf Hitler, the popular Nazi party leader, said that extending the length of payments was ‘passing on the penalty to the unborn’, which wasn’t a good thing…
Then came something called the ‘Locarno Pact’, 1925. Stresemann had also made progress I international affairs too. In 1925, he signed the Locarno Pact which was yet another treaty between Germany, Britain, France, Italy and Belgium. This treaty ensured that the last allied troops left the Rhineland and that Germany would agree to keep its new 1919 border with France and Belgium. It also ensured that France would promise there would be peace with Germany and the powers would agree to open talks about German membership of the ‘League of Nations’.
Then came the League of Nations, at the end of the first world war, the allies had founded something called the League of Nations. This was a new international body in which powerful countries joined together and discussed ways of solving the world’s problems. Stresemann managed to persuade the great powers to accept Germany as a member! Lots of people had different views on this, however, Stresemann saw it as another step towards German equality with other nations. Later on in 1926, Stresemann was awarded with the Nobel Peace Prize.
In August 1928, Germany became one of 65 countries to sign the Kellogg-Briand Pact which was an international agreement in which states promised not to use war to achieve their foreign policy aims.
Gustav Stresemann was appointed the new chancellor and foreign secretary in august 1923. However in 1924 he gave up the chancellorship so he could fully focus on being the foreign secretary.
Before giving up the chancellorship he abolished the old currency (marks) and replaced it with new currency (rentenmark) and started a new independent national bank called the Reichsbank. This was very good because it’s got rid of and hyperinflation and helped out on bankruptcy. However some people did not like this like the bankers because they were being told to close, witch they did not like because they had invested money into it. Also in the same year to get rid of the bankruptcy he did the Dawes Plan. The Dawes Plan was done with an American banker called Charles G. Dawes when the allies told him to resolve the problem with Germany’s non payments and did it under this plan: • Annual payments were reduced to an affordable level. • It was agreed that American banks would invest in Germany’s industry. This package reassured the allies that they would get there payments on time. Also Stresemann had already called off the passive-resistance inside the Ruhr which assured the French and the Belgium people, so they left. This was a success because they could now go to the Ruhr
All this improved Germany’s economy. This meant that: • Industrial output doubled during the period 1923-1928, which was done on American loans. • Import and export increased. • Employment went up. • Government income from taxation improved. Most of the German people were reassured that it was getting better. This also got rid of extremist parties because barely anyone listened to them while they were doing well. However there was a problem. Extreme political parties were furious that Germany had once again agreed to pay back reparation. Another problem was that the whole recovery of the economy was totally reliant on American loans.
In 1925 Stresemann also made progress with international affairs by signing the Locarno Pact. This was a treaty between Germany, Britain, France, Italy and Belgium. This treaty consisted of: • Germany agreeing to keep its new 1919 border with France and Belgium. In return: • All the allies troops left the Rhineland • France promised peace with Germany. • The powers agreed to open talks for Germany joining the league of nations Stresemann saw this as a triumph; Germany was treated by an equal, not dictated to and now was not alone. However, not every party agreed; some hated the fact that the despised Versailles borders had been confirmed.
How successful was Stresemann in solving Germany’s Problems? There were lots of problems concerning Germany in 1924-29. These reasons were: • Hyperinflation • The Munich Putsch • Racist and extremist parties • Bankruptcy • Invasion • Alone
Hyperinflation- Hyperinflation is when there is too much money and the value decreases rapidly. Money therefore becomes worthless and millions of MARKS won’t even buy a loaf of bread. To prevent hyperinflation from increasing Stresemann created a new currency called the Rentenmark. He burned the remaining MARKS. This made banks close down but there was a new bank called the Reichsbank. These changes increased confidence in Germany. This plan was known as the Dawes Plan in 1924.
The Munich Putsch-The Munich Putsch was when other parties tried to overthrow Germany’s government. Many main parties had small armies to protect speakers. Although, the present government had a bigger army to deal with rival parties. He then banned such parties as the NSDAP better known as the NAZI party.
Racist and extremist parties-Racist and extremist parties were basically other parties only they had extreme beliefs in how Germany should be run. Stresemann did so well in running the country that people weren’t interested in other parties. Therefore they failed to seize power.
Bankruptcy- Bankruptcy put Germany into a great depression. Banks were major investors in shares and suffered huge losses. People then found they couldn’t pay out the money in bank accounts. He dealt with this the same way as he dealt with hyperinflation, by making a new currency called Rentenmark.
Invasion- The invasion of the Ruhr was to force the German workers to work to make money so Germany could pay the reparations. Germany basically got invaded by the French and Belgians for revenge also for the First World War. Stresemann then introduced the Locarno Pact in 1925. This plan involved Germans leaving the Rhineland and in return France promised peace with Germany.
Alone- Germany, for a few years after the war, they had no allies to help and protect Germany from invasion and help them with the economic depression. Stresemann dealt with this by introducing the Locarno pact also. This was originally made to get France to leave Germany, but this also made the powers agree to have an open talk about the German Membership of the League of Nations.
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He was successful in many ways. Firstly, he abolished the existing currency (which was the mark) and set up a new one which was named the Rentenmark. He then later introduced a new independent national bank, the Reichsbank, and they were given control of the currency. These changes made Germany more confident as it helped their economy to recover from hyperinflation. This was a great idea as the old mark was worth next to nothing and everyone was suffering because of this – people were starving because they couldn’t afford much refreshments, they couldn’t afford clothes or other necessaries!
ReplyDeleteDuring April 1924, Stresemann agreed to something called the ‘Dawes Plan’. This addressed the reparations issue that was caused by the Treaty of Versailles. Charles Dawes, who was an American banker, had been asked by the allies to resolve Germany’s non-payment under his plan which consisted of the following things:
• annual payments ere to be reduced to an affordable level
• it was also agreed that american banks would invest in the german industry
• industrial output would double during the period of 1923-1928 – fuelled by us loans
• imports and exports increased
• employment levels risen
• government income from taxation improved
This was a great plan and the Germans were attached to it, however, there were some drawbacks. Some of these drawbacks included the extreme and racist political parties that hated the Treaty of Versailles. These parties were furious that Germany had again, agreed to pay reparations. Furthermore, the fragile economic recovery depended on American loans.
Stresemann made further progress with reparations five years later, when he then decided to agree to another plan which was called the ‘young plan’. The young plan reduced the total reparations debt from 6.6 billion to 2 billion. Moreover, Germany was given a longer time to pay; they were given 59 years to pay this debt – easy! This made it possible for Germany to lower taxes and released spending power, which boosted German industry and employment. However, this plan still had its drawbacks. The annual payments were still a massive sum of £50 million a year! Several of the extreme political parties were incensed and Adolf Hitler, the popular Nazi party leader, said that extending the length of payments was ‘passing on the penalty to the unborn’, which wasn’t a good thing…
Then came something called the ‘Locarno Pact’, 1925. Stresemann had also made progress I international affairs too. In 1925, he signed the Locarno Pact which was yet another treaty between Germany, Britain, France, Italy and Belgium. This treaty ensured that the last allied troops left the Rhineland and that Germany would agree to keep its new 1919 border with France and Belgium. It also ensured that France would promise there would be peace with Germany and the powers would agree to open talks about German membership of the ‘League of Nations’.
Then came the League of Nations, at the end of the first world war, the allies had founded something called the League of Nations. This was a new international body in which powerful countries joined together and discussed ways of solving the world’s problems. Stresemann managed to persuade the great powers to accept Germany as a member! Lots of people had different views on this, however, Stresemann saw it as another step towards German equality with other nations. Later on in 1926, Stresemann was awarded with the Nobel Peace Prize.
In August 1928, Germany became one of 65 countries to sign the Kellogg-Briand Pact which was an international agreement in which states promised not to use war to achieve their foreign policy aims.
NODDY
Gustav Stresemann was appointed the new chancellor and foreign secretary in august 1923. However in 1924 he gave up the chancellorship so he could fully focus on being the foreign secretary.
ReplyDeleteBefore giving up the chancellorship he abolished the old currency (marks) and replaced it with new currency (rentenmark) and started a new independent national bank called the Reichsbank. This was very good because it’s got rid of and hyperinflation and helped out on bankruptcy. However some people did not like this like the bankers because they were being told to close, witch they did not like because they had invested money into it.
Also in the same year to get rid of the bankruptcy he did the Dawes Plan. The Dawes Plan was done with an American banker called Charles G. Dawes when the allies told him to resolve the problem with Germany’s non payments and did it under this plan:
• Annual payments were reduced to an affordable level.
• It was agreed that American banks would invest in Germany’s industry.
This package reassured the allies that they would get there payments on time. Also Stresemann had already called off the passive-resistance inside the Ruhr which assured the French and the Belgium people, so they left. This was a success because they could now go to the Ruhr
All this improved Germany’s economy. This meant that:
• Industrial output doubled during the period 1923-1928, which was done on American loans.
• Import and export increased.
• Employment went up.
• Government income from taxation improved.
Most of the German people were reassured that it was getting better. This also got rid of extremist parties because barely anyone listened to them while they were doing well. However there was a problem. Extreme political parties were furious that Germany had once again agreed to pay back reparation. Another problem was that the whole recovery of the economy was totally reliant on American loans.
In 1925 Stresemann also made progress with international affairs by signing the Locarno Pact. This was a treaty between Germany, Britain, France, Italy and Belgium. This treaty consisted of:
• Germany agreeing to keep its new 1919 border with France and Belgium. In return:
• All the allies troops left the Rhineland
• France promised peace with Germany.
• The powers agreed to open talks for Germany joining the league of nations
Stresemann saw this as a triumph; Germany was treated by an equal, not dictated to and now was not alone. However, not every party agreed; some hated the fact that the despised Versailles borders had been confirmed.
By Brum the magic car and Shaggy
How successful was Stresemann in solving Germany’s Problems?
ReplyDeleteThere were lots of problems concerning Germany in 1924-29. These reasons were:
• Hyperinflation
• The Munich Putsch
• Racist and extremist parties
• Bankruptcy
• Invasion
• Alone
Hyperinflation- Hyperinflation is when there is too much money and the value decreases rapidly. Money therefore becomes worthless and millions of MARKS won’t even buy a loaf of bread. To prevent hyperinflation from increasing Stresemann created a new currency called the Rentenmark. He burned the remaining MARKS. This made banks close down but there was a new bank called the Reichsbank. These changes increased confidence in Germany. This plan was known as the Dawes Plan in 1924.
The Munich Putsch-The Munich Putsch was when other parties tried to overthrow Germany’s government. Many main parties had small armies to protect speakers. Although, the present government had a bigger army to deal with rival parties. He then banned such parties as the NSDAP better known as the NAZI party.
Racist and extremist parties-Racist and extremist parties were basically other parties only they had extreme beliefs in how Germany should be run. Stresemann did so well in running the country that people weren’t interested in other parties. Therefore they failed to seize power.
Bankruptcy- Bankruptcy put Germany into a great depression. Banks were major investors in shares and suffered huge losses. People then found they couldn’t pay out the money in bank accounts. He dealt with this the same way as he dealt with hyperinflation, by making a new currency called Rentenmark.
Invasion- The invasion of the Ruhr was to force the German workers to work to make money so Germany could pay the reparations. Germany basically got invaded by the French and Belgians for revenge also for the First World War. Stresemann then introduced the Locarno Pact in 1925. This plan involved Germans leaving the Rhineland and in return France promised peace with Germany.
Alone- Germany, for a few years after the war, they had no allies to help and protect Germany from invasion and help them with the economic depression. Stresemann dealt with this by introducing the Locarno pact also. This was originally made to get France to leave Germany, but this also made the powers agree to have an open talk about the German Membership of the League of Nations.
By Batman and Pingu!!!
lol
ReplyDelete