Stresemann promised to carry on paying reparations and stop inactive fighting to help solve the problem of the French invasion of Ruhr, workers went back to work and meant that France could get the goods to pay the reparations, so Germany left the Ruhr. Stresemann also solved hyperinflation as goods were being produced. Because of his willingness to solve the problems of Ruhr crisis, the Allies were willing to open negotiation on reparations.
Gustav introduced a new currency and changed the useless German marks to a new currency called the rentenmark. This solved the problem of the currency losing value and hyperinflation; because people began to have confidence in the currency again the new German currency stabilised the value of money and price began to return to its normal value.
The agreed Dawes plan was signed in an agreement by the allied countries France, Britain and USA. The USA provided loans of around 800 million gold marks and allowed the Germans to start paying off their reparations and spread their payments over a longer time. This helped to solve the problem of reparations as Germanys economy could make progress, with the loans they could afford to pay reparations again. The agreed Young plan in 1929 reduced the reparations payment further. As Germany showed enthusiasm to co-operate with the allied countries this improved Germany’s relationships with them. There was a withdrawal of allied troops from Germany by 1930 and in 1926 Germany was allowed to join the League of Nations.
Germany liked economic wealth, after recovering from the mix-up in 1923, foreign banks (mostly USA banks) were prepared to loan Germany huge amounts of capital. With this money new homes, new roads and railways were built. Consequently the German industry produced more goods and exports increased. Therefore Germany was soon seen as the most modern and well-off country second to the USA and this led to political stability. The Weimar party won elections and there was a more established government, extremists parties like the Nazis and communists did not get support because Germans were happy with the present government.
Stresemann brought political stability. On the 9th November 1923, Hitler planned the Munich putsch. Hitler expected to gain authority and power through rebellion because hyperinflation had caused bitterness and anger amongst the German people and Hitler thought they would support him in a putsch. However, Stresemann was able to win the support of army and the police who helped him crush the rebellion. The revolution was successfully crushed by the police and the Nazis including Hitler arrested and sentenced to 5 yrs jail. As a result of this the Nazi party was very much weakened as many Nazis as well as the leader was arrested. The Nazi party was banned and Hitler was not allowed to speak publicly until 1928. Because of this extremist parties did badly at the elections and the Nazi party stayed the smallest party in the Reichstag up to 1928. Because the extremists parties had no support from the public this meant political stability for Stresemann as he managed to win support of German people. The public were happy with the economic success, brought by Stresemann’s policies and were uninterested in extremists’ politics. The Weimar government was more stable and after the election of 1928 they had 60% support from Reichstag.
Overall, I think Stresemann succeeded in solving the problems faced by the Weimar Republic as he had many inventive and creative ideas that had proven to work successfully such as the production of the new currency. Stresemann achieved in making Germany a more politically stabile nation as he made sure extremist parties were got rid of before he could do get Germany back to its original state.
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