Promised to continue reparations
payment and stopped passive
resistance.
Solved the problem of French invasion of the
Ruhr. Workers went back to work which meant
got the goods it needed for reparations thus
leaving the Ruhr, this also helped to solve
hyperinflation as goods were being produced.
This led to the Allies being willing to negotiate
the reparations payments due to his
willingness to solve the Ruhr crisis.
Introduced New Currency.
Stresemann recalled the German Mark and replaced
it with a new currency called the Rentenmark. This
solved the problem of the currency losing value and
put a stop to Hyperinflation, people started to have
confidence in the German currency again. The new
Rentenmark stabilised the value of money and the
prices returned to normal.
Negotiated Dawes plan
The Dawes Plan was a signed agreement by the allies, that
America could provide Germany with loans (800 million gold
marks) which allowed Germany to start repaying their
reparation bills, the allies agreed to spread the reparations
owed over a longer period of time and reducing the annual
amount paid.
Due to solving the reparations problem the German
economy was able to recover using the American
loans however this meant that Germany was almost
totally dependent on the American loans. Their only
stability came from the Ruhr which the French
withdrew from.
Negotiated the Young Plan !929
Reduced the total amount of Reparations Germany had to
pay by 25%. Also because Germany had showed it's
willingness to co-operate with the allies thus inproving
relations between them. This led to the withdrawal from
Germany by 1930 and 1926 Germany was allowed to join
the League of Nations
Enjoyed Economic Prosperity
After the 1923 crisis foreign banks (mostly
American) were willing to loan Germany vast sums
of money. Using this money 3 million new homes,
new roads and railways were built. As a result the
German industy produced more goods and exports
increased.
Germany seemed to become the most modern and prosperous
country outside the USA which led to political stability ( the Wiemar
Party won election and created a more stable goverment,
opposition parties i.e. the Nazis did not gain support as Germans
were content).
Brought Political Stability
On November 9th 1923, Hitler organised the Munich
Putch, However Stresemann won the support of the
of the police and army who helped crush the
rebellion. The Nazi party was banned and Hitler
arrested.
Extremist Parties did badly in the
election, the Nazi party remained the
smallest party in the Reichstag up to
1928. this meant political stability as
Stresemann managedto win the support
of the people, who were happy with the
economic prosperity from Stresemann's
policies .