How Far Did the Weimar Republic Recover Under Stresemann?
On August 13, 1923, Gustav Stresemann was appointed Chancellor during a problematic time for the Weimar Republic. There were still huge economic, political and social problems following the First World War. The Weimar Government had been forced to accept the humiliating and crippling terms of the Treaty Of Versailles meaning Germany was put under a huge amount of strain. Germany's standing in the world had been limited greatly by the Treaty as well. Stresemann had to address these problems and begin recovery of the Weimar Republic even under the harsh terms of the Treaty.
Stresemann's first achievements as the new Chancellor of the Weimar Republic were the rescue of the German currency and the softened effect of the large war reparations on Germany's economy. Before Stresemann came to power, the government decided to pay off its debts with worthless marks meaning so much money was in circulation, prices and wages rocketed. For example, in 1918, a loaf of bread cost 0.63 marks whereas in November 1923 it cost 201,000,000,000 marks. The people of Germany suffered as Hyperinflation meant they were left penniless and confidence in the German economy had been lost. Stresemann decided to discredit the mark and replaced it with a new currency called the "Rentenmark". The only way the new currency could be a success was for it be accepted and build people's confidence in the stability of it. He also called off the strike in Ruhr and began production again. Also Stresemann signed the Dawes Plan in 1924 meaning that reparation payment were spread over a longer period and secured loans of 800 million marks from the USA, which was poured into German industry. Stresemann also signed the Young Plan, which spread the payments out for another 59 years meaning he could concentrate on building up Germany again. Exports began to increase, and Germany's economy began to function well again. In the short term this had a positive effect on German economy however the long-term effects
Stresemann's first achievements as the new Chancellor of the Weimar Republic were the rescue of the German currency and the softened effect of the large war reparations on Germany's economy. Before Stresemann came to power, the government decided to pay off its debts with worthless marks meaning so much money was in circulation, prices and wages rocketed. For example, in 1918, a loaf of bread cost 0.63 marks whereas in November 1923 it cost 201,000,000,000 marks. The people of Germany suffered as Hyperinflation meant they were left penniless and confidence in the German economy had been lost. Stresemann decided to discredit the mark and replaced it with a new currency called the "Rentenmark". The only way the new currency could be a success was for it be accepted and build people's confidence in the stability of it. He also called off the strike in Ruhr and began production again. Also Stresemann signed the Dawes Plan in 1924 meaning that reparation payment were spread over a longer period and secured loans of 800 million marks from the USA, which was poured into German industry. Stresemann also signed the Young Plan, which spread the payments out for another 59 years meaning he could concentrate on building up Germany again. Exports began to increase, and Germany's economy began to function well again. In the short term this had a positive effect on German economy however the long-term effects