Promised to continue payments
and stopped passive resistance.
So helped to solve problem of the French
invasion of the Ruhr, meaning that
workers went back to work.
Because of that, France got the goods to pay
reparations, so they left the Ruhr and solved
hyperinflation as goods were being produced.
THUS : Because of his willingness to solve
the problems of the Ruhr crisis, the Allies
were willing to open negotiation or
reparations payment.
Introduced new currency.
Replaced the worthless German marks
with the currency called the
RENTENMARK
This solved the problem of the currency losing
value and hyperinflation because people began
to have confidence in the currency again.
THIS: the new German currency
stabilised the value of money and price
began to return to normal
Negotiated Dawes Plan.
This was signed in agreement by the Allied
countries- France, Britain and USA. American
provided LOANS (800 million gold marks) and
allowed the German to start repaying
reparations and pay the in a longer period.
Helped to solve the problems of reparations
as her economy could recover with the loans.
THUS: could afford to pay
reparations again.
Negotiated Young Plan 1929.
Reduced the reparations payment still further.
Because Germany showed her willingnees
to co-operate the Allied countries and this
improved Germany relation with them.
THUS: withdrawal of Allied troops from
Germany by 1930 and 1926 Germany was
allowed to join the League of Nations.
Enjoyed Economic Prosperity.
After recovering from the crisis in 1923, foreign banks (mostly
America) were willing to loan Germany vast sums of money. With
this money 3 million new homes, new roads and railways were built.
As a result German industry produced more
goods and exports increased.
THUS Germany seem the most modern and prosperous country outside USA and this led to
political stability- Weimar party won elections and more stable government- extremist/ opposition
parties like nazis and communists did not gain support because Germans were happy.
Brought Political Stability.
9 November 1923 Hitler organised the Munich Putsch- Hitler expected to gain
power through rebellion because hyperinflation had caused resentment and anger
amongst the German people and Hitler thought they would support his Putsch.
HOWEVER- Stresmenn managed to win support of army and police who helped him crush rebellions- Revolt was successfully
crushed by the police and Nazis and Hitler arrested and sentenced to 5 yrs jail- Nazi party was greatly weakened as many
Nazis and their leaders were arrested- Nazi party was banned and Hitler was not allowed to speak in public(until 1928)
THUS- Extremist parties did badly at the elections- Nazi party remained the samellets part in the Reichstag up to 1928- no
support from people= Political stability as Stresmann managed to win upport of German people. Germany was happy with
economy prosperity brought by Stresmann's policies and were uninterested in extremists politics. The Weimar
government was more stable with a Grand Coalition government after the election of 1928 and has 60% support from
Reichstag.