The Stresemann Year Success or Time bomb?

Problem

Hyperinflatio
n

Stresemanns policy

Call out resistance

get production running again
stop printing money
replace mark with
Rentenmark
(1 = 1 billion old marks)
peg to US Dollar

Was the policy successful

or not? Explain your
answer?

I believe that the policy was

mainly successful because the
economic disaster got under
control, worthless money was
destroyed and Rentenmark came
out as a new currency.
However, people who had
savings in mark were never able
to get their money back.
The government was blamed for
this policy.
There were also some economic
issues:
American loans could be
withdrawn at any time, so you
can say that America was the
controller of German economy
The rate of unemployment was
still very high, because less men
were required in the army, so the
working population rose rapidly.
Employers complained that the
taxes were too high, and the
government didnt spend its
money well enough, they said far
too much money went to the
employers and the poor.
The proportion of wealth and

Rating (colour in the

number of stars you
want to give it- 5=
AMAZING,
1=AWFUL)

poverty was extremely

unbalanced.

French
occupation
of the Ruhr

Talks between France, USA,

Italy, Belgium and Great
Britain lead to Dawes Plan
Negotiate reparations talks to
make sure that Germany
could afford to play the
reparations
End of passive resistance

Due to the Dawes Plan, the

French agreed to pull out from
Ruhr, Germans think that
Stresemann had given in to
the French while they should
have paid nothing at all.
Reparations were reduced to
1 billion marks for the first
years but would increase as
German economy stabilised.
America leant Germany
money in order to
Young plan reduced what
Germany owed, but Germans
were still paying reparations
until 1988

Poor
International
relations

He signed the Locamo Treaty

which ensured that Great
Britain, France, Italy, German
and Belgium would not invade
each other.
In 1926, he got Germany into
League of Nations.
In 1928, Kellogg-Briand Pact
signed, 69 countries agreed
to to go the war.

German relaxed
Restaurants open again
Cities are alive again
Germany again became major
European power, League of
Nations gives Germany some
status, because they were
able to take up in major
decisions.
However, some Germans
criticized Stressman of not
using this new power to tell

the Allies to leave the

Germans territory.

German
industry is in
trouble

With Dawes Plan, Stressman

believed that he could get
German industry moving and
be able to pay the
reparations.

Germany prospered slowly

but they could still build new
schools, hospitals,
infrastructures in order to
recover Germans daily lives.

Some US companies such as

Ford and Gillette built
factories in Germany, which
could boost up the
employment rate in Germany.

Political
Instability

Joined the League of Nations

Arranged a Great Coalition of
the moderate pro-democracy
parties (based around the
SDP, the Centre party and
Stresemanns own German
peoples Party, the DVP

Germany started to recover

but it heavily relied on
American loans, Streseman
always feared that USA could
stop their aids at any time.
The Army was used to crush
any right wing uprisings.
Parties united together, they
were able to resist the
criticism from smaller
extremist parties,
The bad effect of proportional
representation was gone, the
government had enough
member to pass laws, and
some extreme parties such as
the Nazis and the

Communists did not appeal to

the people
The government could be
organized better without the
annoyance of the nationalists
and the communists.