Did the Republic Recover After 1923? (Cambridge (CIE) IGCSE History)

Revision Note

Zoe Wade

Written by: Zoe Wade

Reviewed by: Bridgette Barrett

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. 

The front page of the German satirical magazine Simplicissimus in 1923. It shows Gustav Stresemann as a guardian angel of the German Michel. The caption reads: "He looks to the right, he looks to the left - he will save me!"
The front page of the German satirical magazine Simplicissimus in 1923. It shows Gustav Stresemann as a guardian angel of the German Michel. The caption reads: "He looks to the right, he looks to the left - he will save me!"

“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

A timeline of Weimar's economic recovery

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

An illustration showing the various reactions to the Dawes Plan in Weimar Germany
An illustration showing the various reactions to the Dawes Plan in Weimar Germany

Young Plan

  • The Young Plan further improved Germany's economic position

A diagram showing a comparison between the Dawes and Young Plans
A diagram showing a comparison between the Dawes and Young Plans

Examiner Tips and Tricks

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

A timeline of Stresemann's political policies

The Locarno Treaties

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

A graph showing the election results for the main political parties in Germany from 1924-1928
A graph showing the election results for the main political parties in Germany from 1924-1928
  • 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 Tips and Tricks

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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Zoe Wade

Author: Zoe Wade

Expertise: History

Zoe has worked in education for 10 years as a teaching assistant and a teacher. This has given her an in-depth perspective on how to support all learners to achieve to the best of their ability. She has been the Lead of Key Stage 4 History, showing her expertise in the Edexcel GCSE syllabus and how best to revise. Ever since she was a child, Zoe has been passionate about history. She believes now, more than ever, the study of history is vital to explaining the ever-changing world around us. Zoe’s focus is to create accessible content that breaks down key historical concepts and themes to achieve GCSE success.

Bridgette Barrett

Author: Bridgette Barrett

Expertise: Geography Lead

After graduating with a degree in Geography, Bridgette completed a PGCE over 25 years ago. She later gained an MA Learning, Technology and Education from the University of Nottingham focussing on online learning. At a time when the study of geography has never been more important, Bridgette is passionate about creating content which supports students in achieving their potential in geography and builds their confidence.