Stresemann

Stresemann

Hyperinflation
1. Replaced old Currency with the Reutenmark
  1. Old currency recalled and burned
  2. Pros
    1. New currency is accepted quickly
    2. Inflation is brought under control
  3. Cons
    1. People didn't forget the disaster
    2. People who lost savings were not compensated
French occupation of the Ruhr
1. Called off passive resistance
  1. Hadn't forced French to leave
  2. Caused economic problems
  3. Pros
    1. The French left the Ruhr
  4. Cons
    1. Unpopular especially with right wing extremists
      1. Giving in to French
        'Weak' Government
2. Promised to keep up payments
Improving trust with other nations
1. Decides to co-operate with other countries in Europe
  1. Pros
    1. 1925 - Locarno pact with Britain, France Belgiun, Italy
    2. 1926 - League of Nations given 'great powers' status so had a say in major decisionns
    3. 1926 - Stresemann awarded Nobel Peace Prize
  2. Cons
    1. Stresemann is 'giving in' to France again
      1. Agreeing with Treaty of V.
      2. Not trying to regain territory by force
Reparations
1. Promises to pay and hopes the Allies reduce the payment
  1. Pros
    1. Dawes Plan (1924) gave Germany longer to pay reparations
    2. Young Plan (1929) lowers the total from 132,000 million marks to 37,000 million marks
  2. Cons
    1. Germans feel they shouldn't be paying at all
    2. Will still be paying until 1988 even with the Young plan!
Rebuilding the economy
1. Organises big loans from the USA as part of the Dawes Plan
  1. Pros
    1. Pensions and Wages Rise
    2. US firms set up factories in Germany
    3. Loans are given to private German firms
    4. German government improves housing, hospitals, schools and roads
  2. Cons
    1. German economy depends on the US
    2. Wages didn't rise for everyone
      1. Farmers stay poor because food prices are low
    3. Unemployment never fell below 1 million
      1. Rises from 1928
    4. Rich people have to pay more tax
      1. Complain the money is spent on poor

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