Became chancellor of Germany
in 1923 when hyperinflation was
out of control
Helped Germany in their time of
need from hyperinflation
How he helped Germany
Dawes Plan
Persuaded the allies to grant easier
terms to pay reparations
Took loans from USA to pay reparations and also to
modernise factories, build new housing, hospitals schools
etc while also improving the gas and electricity works
Helped Britain and France as they used the reparations to pay
their war debts to USA
Called off the Ruhr strike (which at first people dislike
about him) but it turned out to help Germany
Young plan
French and Belgians pulled out of the Rhineland
5 years ahead of schedule
Reduced amount of reparations Germany
had to pay to just 25% of the original figure
Lead to more loans from America
Locarno Treaties
Guaranteed Germany would not try and change their western borders
with France and Belgium
They wouldn't try and seize territory
All countries involved renounced the use force and
invasion except in self-defence
Improved the relationship between Germany and
the French and Belgians as they wouldn't plan an
invasion
Allowed to join League of Nations in 1926
No putsches during the "golden years"
Made a new currency with gold to back it up
Impact on Policies and possible problems
Dependant on American loans
If USA asked for their money back Germany
wouldn't be financially stable
Rise in Unemployment
Weimar Government spent more money on
welfare than it originally had
Agricultural Depression
Agriculture in Germany remained in
depression throughout the 1920s
Right Wingers unhappy
Nazi party etc were upset they signed the Locarno Treaty, joined the
league of nations and also hated any co-operation with the French
and Belgians
Criticised the Dawes and Young plan as Germany still had to pay reparations