Did the Republic Recover After 1923? (Cambridge (CIE) IGCSE History)
Revision Note
How Important was Stresemann to the Recovery of the Weimar Republic? - Summary
When President Ebert chose Gustav Stresemann as chancellor in August 1923, the German economy had crashed. The French invasion of the Ruhr had caused hyperinflation and the German currency, the mark, was worthless.
Stresemann was chancellor from August to November 1923. He made many decisions in an attempt to save Germany's economy. He brought inflation under control by implementing a new currency, the Rentenmark. Stresemann negotiated the Dawes (1924) and Young (1929) plans. This reduced Germany's reparations payments to the Allies.
By November 1923, Stresemann had lost his position as chancellor. The coalition government broke down when the SPD decided they no longer wanted to work with Stresemann’s party, the DVP. The next chancellor, Wilhelm Marx from the Centre Party, formed a coalition with the DVP and the DDP. Stresemann was appointed foreign minister by Marx.
As foreign minister, Stresemann pursued several treaties like Locarno and Kellogg-Briand. He aimed to build better relations with Europe and restore Germany’s reputation as a world power. Stresemann succeeded in his ambitions. In 1926, the League of Nations accepted Germany as a permanent member. In the same year, Stresemann won the Nobel Peace Prize. Stresemann died in office on 3rd October 1929.
Historians debate the success of Gustav Stresemann’s policies on the recovery of the Weimar Republic. Some historians argue that Stresemann saved the Republic. They state that his policies facilitated a ‘Golden Age' from 1923 to 1929. Between 1924 and 1929, the public’s support of moderate parties increased. Other historians highlight that Stresemann only delayed the failure of the Republic. The Dawes and Young plans meant that Germany was reliant on American economic success. If the USA’s economy failed, it would trigger a depression in Germany. The Wall Street Crash in the USA in 1929 ultimately caused the downfall of the Weimar Republic.
“Stresemann did German democracy a disservice. Stresemann’s Republic was kept going by foreign success and the dose of success had constantly to be increased. Far from consolidating the Republic, Stresemann gave the Germans a taste for blood which the enemies of the Republic could more easily satisfy” |
An extract from The Course of Germany History by A. J. P. Taylor. It was published in 1945 |
Economic Achievements of Gustav Stresemann
Who was Gustav Stresemann?
Gustav Stresemann became chancellor in August 1923
Stresemann was a nationalist
Initially, he did not like the Weimar Republic
After the assassination of Rathenau, Germany’s foreign minister, Stresemann’s opinion of the government changed
He established the DVP (People’s Party), a moderate right political group
As chancellor, Stresemann had three aims for Germany:
Bring inflation under control
Regain Europe’s respect
Minimise the support for extremist parties
The Creation of the Rentenmark
Germany’s currency, the mark, was beyond saving:
The largest note was 100,000,000,000,000 (100 trillion) marks
The government believed there were 400.3 billion trillion marks in circulation
In November 1923, Stresemann created a new currency called the Rentenmark
One Rentenmark was the equivalent of a trillion marks
Stresemann established a new state-owned bank called the Rentenbank
The German public brought marks into the Rentenbank to transfer them into Rentenmarks
The Rentenmark was a gold standard currency
This means that the value of the Rentenmark matched the price of gold
European countries trusted gold standard currencies
In August 1924, the government created the Reichsbank to control the Rentenmark
The government renamed the Rentenmark the Reichsmark
The new currency allowed German businesses to trade with foreign countries
Dawes Plan
The agreement of the Dawes Plan helped Germany to economically recover
Young Plan
The Young Plan further improved Germany's economic position
Examiner Tip
Students often get confused between the Dawes and Young plans. There are many similarities between the two plans. However, the Young Plan built upon the success of the Dawes Plan. Use the diagram above to help you identify specific features from each plan.
Successes | Weaknesses |
|---|---|
Stresemann ended the passive resistance in the Ruhr which increased Germany’s production capability | Germany’s economy was dependent on the US economy. In 1929, Stresemann stated that Germany was “dancing on a volcano”. If the USA recalled the loans or experienced a depression, the ‘volcano’ would erupt and destroy the stability of Weimar Germany |
The Rentenmark meant that businesses could trade again with other countries | Rich and poor remained divided. Farmers particularly struggled with low prices |
The Young Plan lowered reparation payments, which helped recover the economy. This increased the Allies’ confidence in Germany’s ability to pay the reparations bill | Unemployment remained at one million |
The Dawes Plan brought foreign investment into German industry. This eased tensions between Germany and the Allies |
Foreign Policy Achievements of Gustav Stresemann
The Locarno Treaties
The Locarno Treaties helped Germany's relationship with other countries
Germany Joins the League of Nations
The League of Nations was a forum where countries could discuss problems before resorting to armed conflict
Wilson, the American President, played a leading role in the creation of the League of Nations. It was based on his 14 Points
The Treaty of Versailles established the League
The League did not formally meet until 10th January 1920
For a country to join the League of Nations as a permanent member, it had to receive two-thirds of the members’ votes
A country could leave the League if it gave two years' notice
Due to Clemenceau’s anger, the Treaty of Versailles banned Germany from joining the League of Nations
As a result of the Locarno Treaties, the League of Nations met with Stresemann to discuss membership
In September 1926, Stresemann obtained German membership of the League
The League permitted Germany to sit on the League of Nations Council
The Impacts of Joining the League of Nations
Positive impacts | Negative impacts |
|---|---|
Boosted German citizens’ confidence in the Weimar Republic | Some people did not want anything to do with the League of Nations. It was associated with the hated Treaty of Versailles |
Gained support for moderate parties | Created anger among extremist parties |
The Kellogg-Briand Pact, 1928
French foreign minister Aristide Briand met with US Secretary of State Frank B. Kellogg to discuss further steps towards world peace
The USA was not in the League of Nations due to focusing on their own affairs
Some US politicians were idealists and wanted world peace
On 27th August 1928, they assembled Germany and 61 other countries to sign the Kellogg-Briand Pact
The Kellogg-Briand Pact stated that war should never be used as a means for resolving disputes between countries
Impacts of the Kellogg-Briand Pact on Germany
Positive impacts | Negative impacts |
|---|---|
Boosted German citizens’ confidence in the Weimar Republic | The Kellogg-Briand Pact did not remove the military restrictions imposed by the Treaty of Versailles. This angered extremist parties |
The world saw Germany as a respectable and trustworthy state. They could enter into treaties as an equal to the other signatories | Many Germans thought other countries would move towards disarmament. Disappointingly, the pact did not promise this |
Impact on the Reichstag
When Stresemann became chancellor in August 1923, he aimed to reduce support for extremist parties
His success in financial and political affairs achieved this aim
By October 1929, the political atmosphere in Germany had radically changed
There were no political assassinations between 1924 and 1929
There were six coalition governments in the period of 1924-1929. This was much fewer than pre-1924
Friedrich Ebert died in 1925
Throughout his presidency, Ebert could not detach his reputation from the Treaty of Versailles
Paul von Hindenburg replaced Ebert as president
Hindenburg was the army chief of staff under the Kaiser
He was elected president at 77 years old
He had strong conservative, nationalist views
The right-wing middle class respected Hindenburg and, as a result, increased their support of the Weimar Republic
On 3rd October 1929, Stresemann died in office of a heart attack
The Republic lost one of the most capable ministers it had
The Wall Street Crash occurred at the end of October
Successes | Weaknesses |
|---|---|
The French and Belgian soldiers left the Ruhr in 1925. Stresemann’s approach helped created a stronger relationship between Germany and France | This was not enough for nationalists. They believed that the Allies got away with unacceptable actions |
Politics in Germany stabilised. Moderate parties received more votes. In 1925, Paul von Hindenburg was elected president. This increased confidence in the Weimar Republic | Extremist parties still had 13% of the vote. Hindenburg was a right-wing nationalist who initially did not support the Weimar Republic |
The Locarno Treaties, the Young Plan and Germany’s entrance into the League showed that countries accepted Germany back into European affairs | Nationalists criticised these actions. They were unhappy that the German government continued to follow the Treaty of Versailles |
Worked Example
Why were Stresemann’s policies important for Germany?
6 marks
Partial answer:
Stresemann’s policies were important for Germany because they helped Germany recover from hyperinflation (1). The occupation of the Ruhr caused the Weimar Republic to print more money. This caused a hyperinflation crisis. In 1923, Stresemann introduced a new currency called the Rentenmark (1). The Rentenmark was incredibly important for Germany. It allowed the country to have a valuable currency respected by foreign markets. This allowed Germany to trade, helping German industries to recover (1).
Examiner Tip
Ensure you write two paragraphs in PEE format about why Stresemann’s policies helped Germany to recover. Other points you could include are:
The end of passive resistance in the Ruhr
The reduction of reparations due to the Dawes and Young plans
Securing investment from the USA
Helping Germany to recover its international reputation
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