How Gustav Stresemann saved Germany

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Mind Map on How Gustav Stresemann saved Germany, created by Andrew Jones on 15/11/2016.
Andrew Jones
Mind Map by Andrew Jones, updated more than 1 year ago
Andrew Jones
Created by Andrew Jones almost 8 years ago
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How Gustav Stresemann saved Germany
  1. Promised to continue reparations payment and stopped passive resistance
    1. so helped to solve the problem of French invasion of Ruhr - workers went back to work
      1. meant that France could get the goods to pay the reparations, so she left the Ruhr, also solved hyperinflation as goods was being produced
        1. THUS - because of his willingness to solve the problems of Ruhr crisis, the Allies were willing to open negotiation on reparations payment
        2. Introduced new currency
          1. replaced the worthless German marks with a new currency called the RENTENMARK
            1. this solved the problem of the currency losing value and hyperinflation because people began to have confidence in the currency again
              1. thus - the new German currency stabilised the value of money and price began to return to noral
          2. Negotiated Dawes Plan
            1. this was signed in agreement by the Allied countries - ie France, Britain and the USA..
              1. Americans provided LOANS (90 million gold marks) and allowed the Germans to start repaying their reparations bills and spread their payments over a LONGER period
                1. helped to solve the problem of reparations as her economy could recover with the loans
                  1. THUS - could afford to pay reparations again.
            2. NEGOTIATED YOUNG PLAN, 1929
              1. reduced the reparations payment still further
                1. because Germany showed her willingness to co-operate with the Allied countries and this improved Germany relations with them.
                  1. Thus = withdrawal of Allied troops from Germany by 1930 and 1926 Germany was allowed to join the League of Nations
              2. ENJOYED ECONOMIC PROSPERITY
                1. After recovering from the crisi in 1923, foreign banks (mostly American) were willing to sell Germany vast sums of money With this money 3 million new homes, new roads and railways were built.
                  1. as a result, German industry produced more goods and exports increased:
                    1. THUS - Germany seem the most modern and prosperous country outside of the USA and this led to political stability.
                      1. Weimar party won elections and more stable Government - extremists/opposition parties like Nazis and Communists did not gain support because Germans were happy
                2. BROUGHT POLITICAL STABILITY
                  1. 09/11/23 - Hitler organised the Munich Putsch
                    1. Hitler expected to gain power through rebellion because hyperinflation had caused resentment and anger amongst the German people and Hitler thought they would support hi in a Putsch
                      1. HOWEVER - Stresemann managed to win the support of Army and Police who helped him crush rebellions
                        1. Revolt was successfully crushed by the Police and Nazis ad Hitler arrested and sentenced to 5 year5s jail
                          1. the Nazi Party was banned and Hitler was not allowed to speak publicly (until 1928)
                            1. THUS - Extremis parties did badly at the elections - the Nazi Party remained the smallest party in the Reichstag up to 1928
                              1. no support from the people = political stability as Stresemann managed to win the support of the German people
                                1. people were happy with the economic prosperity brought by Stresemann's policies and were uninterested in extremists politics
                                  1. the Weimar Government was more stable with a Grand Coalition Government after the election of 1928 and had 60% support from Reichstag.
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