• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

What steps did Stresemann take to solve the Ruhr Crisis and stabilise the German economy in 1923-1924?

Extracts from this document...

Introduction

History What steps did Stresemann take to solve the Ruhr Crisis and stabilise the German economy in 1923-1924? When the Reparations of the Treaty of Versailles were finally announced in 1921, the hatred from the German people for the Weimar Republic grew stronger. Most people thought that the amount was far too high, and blamed the government for 'giving in' to the Allies. There were many demonstrations and strikes, and violence on the streets increased immensely. As the German citizens lost respect for their government, they began to lose confidence in their country and their currency, and prices began to rise (by 1922 prices were seventy times higher than they had been in 1919). The situation became so bad that they stopped paying reparations in 1922. ...read more.

Middle

This took a lot of courage as many of the Germans felt as though he was giving in to France, as they did not take into consideration that their policy was bankrupting Germany. He then appointed Hjalmar Schacht, a respected banker, as currency commissioner to tackle the disastrous hyperinflation problem. In addition to this, Stresemann then cancelled the old worthless mark, and introduced a new, temporary currency, the Rentenmark. By limiting the amount of this currency, the value of German money was stabilised, ending inflation, and in the next year a new permanent currency, the Reichsmark, was brought in. To keep the support of the army (right-wing), the government gave orders that left-wing state government in Saxony and Thuringia should be deposed. ...read more.

Conclusion

The great advantage was that it provided a break from the huge payment previously expected, though it fixed no date for the end of payments, which made the plan unpopular with a certain amount of German people. With some reparations paid, the French and Belgians withdrew their troops from the Ruhr in 1925, and the government soon noticed a huge gain in there funds. Although Gustav Stresemann was only Chancellor for five months, he made a substantial difference and aid to the German economy. As well as helping Germany financially, he also helped the situation between Germany and her neighbours. As relations among Germany with France and Belgium improved, the Locarno Pact was soon initiated and the peace treaty was signed in October 1925, as a guarantee for the borders of the three counties. ?? ?? ?? ?? Stephanie Michaelides ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Germany 1918-1939 section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Germany 1918-1939 essays

  1. Germany - How far did Germany recover under Stresemann?

    And sooner or later an opportunity would turn up, either in the form of Stresemann dying or the USA wanting its money back. Stresemann should have foreseen this and attempted to remove extremist groups while they were still weak and unpopular.

  2. Weimar, 1918 - 1923

    Walter Bauer - former Chief of Operations, 1916-18; * General Ludendorff - former Chief of Staff; * Dr. Wolfgang Kapp. The last six of these formed a political group called Nationale Vereinigung (National Unification). Kapp himself was born July 24th, 1868, in New York (his grandparents had emigrated in 1848).

  1. What problems did the Weimar Republic face from 1919 to 1923, and why did ...

    The value of the Mark had declined from 4.2 per US dollar to 1,000,000 per dollar by August 1923 and 4,200,000,000,000 per dollar on November 20. On December 1, a new currency, the Rentenmark, was introduced at the rate of 1,000,000,000,000 old marks for 1 new mark.

  2. Weimar, 1924 - 1929

    of gaining public notice in the fight between sympathisers." Lord Bullock "In Berlin the violence of the SA's street battles with the Communists alienated public opinion and led the police to secure a ban on the Nazi organisation in the capital."

  1. The NaziState, Economy and Society.

    The trade Unions were emasculated. The Nazis unexpectedly announced that May 1st 1933 would be a national holiday and the following day the SA and SS occupied all their offices and arrested their leaders. Henceforth all German workers were enrolled in the DAF (Deutscher Arbeitsfront - German Labour Front)

  2. How Far Did The German Economy Sacrifice Their Ideology

    of an Aryan run Germany and the persecution of the sub-races' began. Although the Nazi's initially sacrificed their ideology of a pure Aryan race and persecution of non-aryans, once the economy was financially stable then the businesses were aryanised. Financing the economy also forced the Nazi's, once in power, to

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work