It's August 1923. Gustav Stresemann has just been appointed the new chancellor and foreign secretary for Weimar Germany. Just three months later, in November, Stresemann resigns as Chancellor, but he remains Foreign Secretary. He hopes that by stabilising the economy and regaining respect for Germany in foreign affairs, Germans will feel more content with the Weimar Republic. In turn, he hopes this will lead to more support for moderate parties and reduce support for extremists. 1923-29: Stresemann's Strategy. The first step in Stresemann's strategy is bringing an end to hyperinflation, which he does through the establishment of the rentenmark. In November 1923, he sets up a new, state-owned, bank, the Rentenbank. This Bank issues a new currency: the rentenmark. The supply of this new currency is strictly limited, and its value is tied to the price of gold. Furthermore, the rentenmark is backed by German industrial plants and agricultural land, meaning the currency has real value. In August 1924, the control of the rentenmark is given to the Reichsbank, a newly independent National Bank. The currency is renamed the Reichsmark, and is backed by Germany's gold reserves. Finally, the German people can trust German money again and hyperinflation is brought to an end. This makes way for Stresemann's next work: the Dawes plan. In April 1924, Stresemann agrees to the Dawes plan. The plan has come about as the Allies have asked an American Banker, Charles G Dawes, to resolve Germany's non-payment of reparations. The plan involves temporarily reducing reparations to £50 million per year. US banks are to give huge loans to German industry. Between 1924 and 1930, these loans amount to 25 billion dollars. Moreover Stresemann calls off passive resistance to the French occupation of the Ruhr, and reluctantly they agree to leave. The German economy begins to recover, benefiting both workers and the middle class. Between 1923 and 1928, industrial output doubles. Employment, trade and income from taxation also increase. The German people are reassured and the Republic is strengthened again. However, extremists are furious at Germany agreeing to pay reparations again, and also at the fact the recovery of Germany is now dependent upon American loans. In 1929, further progress is made by Stresemann with the Young Plan. The plan is put forward by committee headed by American banker, Owen Young. The reparations debt is reduced from 6.6 billion pounds to 2 billion pounds, and Germany is given a further 59 years to pay it off, meaning the debt now stretches out until 1988. Annual payments are to remain at 50 million pounds a year. Lower reparations mean lower taxes for German people, thus public spending power is released, giving a boost to the economy and consequently, to employment. A referendum in 1929 sees 35 million Germans vote in favour of the Young Plan, which is around 85% of voters. And, in 1930, the French agreed to leave the Rhineland. However, not only does Stresemann oversee major economic improvement, but he also oversees a recovery and Foreign Relations, the first step in which is the Locarno Pact. On the 1st of December 1925, the Locarno Pact is signed. It's a treaty between Germany, Britain, France, Italy and Belgium, and it has been agreed on equal terms with Germany, rather than imposed. Under the treaty, Germany accepts its new, 1919, border with France and France promises peace with Germany. Moreover, the Rhineland is to be permanently demilitarised and five powers agreed open talks with Germany about joining the League of Nations. This makes war in Europe much less likely. And, in 1926, Stresemann is awarded the Nobel Peace Prize. Germany's treatment as an equal sees a boost in German confidence in moderate parties and the Weimar government. The next important step is the German entry into the League of Nations. At the end of the First World War, the Allies had founded the League of Nations. They're a body who discuss ways to solve the world's problems without resorting to war. In September 1926, Stresemann successfully persuades the other powers to accept Germany as a member. They're given a place on the League of Nations Council, who make the most important decisions of the league. This is a further boost to moderate parties in Germany. The final piece instrument strategy for foreign relations is the Kellogg-Briand Pact. In August 1928, Germany and 61 other countries sign the Kellogg-Briand Pact. It's a promise not to use war to achieve foreign policy aims and is the work of two French and US foreign ministers. It shows that Germany is now included in the main powers, not dictated by them, and this further improves support for the Weimar government by removing the hardships of everyday people. Through improving Germany's world status Stresemann had successfully reduced support for extremists. In May 1924, extremists held 40% of seats and moderates 50%. By May 1928, extremists held 28% and moderates 58% - a dramatic improvement for Stresemann. Furthermore, in 1925, President Ebert had died and was replaced by Paul von Hindenburg, a former field marshal of the Kaiser's army. This had served to reassure the middle classes and had given the Republic a strong figurehead, further strengthening the Weimar government. However, this stabilisation is rapidly undone. And, on the 3rd of October 1929, Stresemann dies of a heart attack. Within a month, the Wall Street Crash occurs and the Great Depression means Germany is thrown back into hard times. 1923-29: Stresemann's Strategy. Thanks for watching. Don't forget to like, subscribe and tell all your friends. Also, don't forget you can find a link to a set of Quizlet flashcards on this topic in the description, and also set of practice questions. Also, there'll be a poll going up in the next couple of days on my community tab to vote for what topic you want to see the next video on, so look out for that. Wesað ġē hāle.