How Did Gustav Stresemann Achieve Stability in Germany?
Gustav Stresemann led Germany through a very difficult period in their history. He had to contend with economic hardships, political turbulence and much more. In this essay, I will examine his tenure as Chancellor, and the ways in which he was able to achieve stability.
First of all, the severity of the problem that Gustav Stresemann encountered when he first came into power was immense. Not only was there great political instability, there was also economic instability.
The French occupation of the Ruhr caused huge economic problems for Germany. It brought German public finances to its usually robust knees. Furthermore, hyperinflation was at an astronomical level. Stresemann's first move was to issue a new currency, the Rentenmark, to halt the extreme hyperinflation that was crippling German society and economy. It was successful in its aims as Stresemann repeatedly refused to issue more currency, the initial cause of the seemingly uncontrollable inflatory spiral. As a result, some form of economic stability was achieved. This was the basis from which Germany, under Stresemann, would achieve further stability.
Stresemann (as Foreign Minister, not Chancellor) contributed to the Dawes Plan of 1924, which reduced Germany's overall reparations commitment and reorganized the Reichsbank. The Dawes Plan was initially a great success. The currency was stabilized and inflation was brought under control. Large loans were raised in the United States and this investment resulted in a fall in unemployment. Germany was also able to meet her obligations under the Treaty of Versailles for the next five years.
However, the Wall Street Crash created new problems for the German economy. In 1929 the Allied Reparations Committee asked an American banker, Owen D. Young, to investigate the situation. Young's report suggested that the total amount of reparations should be reduced by about three-quarters and that Germany should make annual payments on a sliding-scale up to
First of all, the severity of the problem that Gustav Stresemann encountered when he first came into power was immense. Not only was there great political instability, there was also economic instability.
The French occupation of the Ruhr caused huge economic problems for Germany. It brought German public finances to its usually robust knees. Furthermore, hyperinflation was at an astronomical level. Stresemann's first move was to issue a new currency, the Rentenmark, to halt the extreme hyperinflation that was crippling German society and economy. It was successful in its aims as Stresemann repeatedly refused to issue more currency, the initial cause of the seemingly uncontrollable inflatory spiral. As a result, some form of economic stability was achieved. This was the basis from which Germany, under Stresemann, would achieve further stability.
Stresemann (as Foreign Minister, not Chancellor) contributed to the Dawes Plan of 1924, which reduced Germany's overall reparations commitment and reorganized the Reichsbank. The Dawes Plan was initially a great success. The currency was stabilized and inflation was brought under control. Large loans were raised in the United States and this investment resulted in a fall in unemployment. Germany was also able to meet her obligations under the Treaty of Versailles for the next five years.
However, the Wall Street Crash created new problems for the German economy. In 1929 the Allied Reparations Committee asked an American banker, Owen D. Young, to investigate the situation. Young's report suggested that the total amount of reparations should be reduced by about three-quarters and that Germany should make annual payments on a sliding-scale up to