Stresemann's Strategy (1923-1929)

Context

August 1923 - Gustav Stresemann becomes Chancellor and Foreign Secretary of Weimar Germany.

• Objective: Stabilize the economy and improve Germany's foreign relations to strengthen support for the Weimar Republic and moderate parties.

November 1923 - Stresemann resigns as Chancellor but remains as Foreign Secretary.

Key Strategies

Economic Stabilization

• Hyperinflation:
  • November 1923: Introduction of the Rentenmark.
    • Founded the Rentenbank to issue the new currency.
    • Rentenmark backed by German industrial plants and agricultural land.
  • August 1924: Rentenmark control shifted to the Reichsbank, renaming it the Reichsmark, backed by gold reserves.
• Dawes Plan (April 1924):
  • Temporarily reduced reparations to £50 million per year.
  • US loans to Germany totaled $25 billion between 1924-1930.
  • Ended passive resistance to French occupation of Ruhr.

Economic Recovery

• Industrial Growth:
  • Between 1923-1928, industrial output doubled.
  • Employment, trade, and tax income increased.

Debt Management

• Young Plan (1929):
  • Reduced reparations debt from £6.6 billion to £2 billion.
  • Extended payment period to 1988 with annual payments of £50 million.
  • Resulted in lower taxes and boosted economic activity.

Foreign Relations

Locarno Pact (December 1925)

• Treaty involving Germany, Britain, France, Italy, and Belgium.
• Germany accepted 1919 borders with France.
• Permanent demilitarization of Rhineland.
• Germany opened talks to join the League of Nations.
• Stresemann awarded the Nobel Peace Prize (1926).

League of Nations (September 1926)

• Germany became a member and gained a place on the council.
• Boosted confidence in moderate parties.

Kellogg-Briand Pact (August 1928)

• Signed by Germany and 61 other countries.
• Agreement not to use war for foreign policy.
• Improved international standing and domestic support for Weimar government.

Political Changes

• May 1924 vs May 1928:
  • Moderates increased from 50% to 58% of seats.
  • Extremists reduced from 40% to 28%.
• 1925: President Ebert dies, succeeded by Paul von Hindenburg.

Conclusion

• Stresemann's strategies successfully stabilized Weimar Germany, improved its international standing, and reduced extremist influence.
• October 1929: Stresemann dies; shortly followed by the Wall Street Crash and the onset of the Great Depression, destabilizing Germany again.

Note: For additional resources, refer to Quizlet flashcards and practice questions linked in the transcript description.