Describe the key features of the Stresemann era
from 1923 to 1929
During the Stresemann era, 1923-1929, Gustav Stresemann put past new measures
which aimed to bring Germany out of its current economic situation, and bring the
Weimar Republic back into a recovery.
One of the first things that Stresemann did, and perhaps the most important, was
abolishing the old currency and creating a new one, the Rentenmark. The previous
currency had suffered from rampant inflation, to the extent that many countries were
refusing to trade with Germany as they knew that within minutes the money they had
received could have had dramatically changed in value (for the worse). This new
currency was supposed to combat this problem, and make sure that money could be
something that people had faith in. In 1924, as a partial result of this, Stresemann
created a new independent national band, the Reichsbank, which had control of the
new currency and aimed to make sure that this sort of problems wouldn’t happen
again.
However, the issue of reparations being paid was still a large problem for Germany as
currently the payments were really at a level that Germany could not cope with. Under
the Dawes Plan, devised mainly by Charles G. Dawes (American Banker), the reparations
were lowered to a more manageable level, and also it was agreed that American banks
would invest in German industry, which meant that not only would German businesses
would get a cash boost, but also it would possibly show the rest of the world that they
should have more confidence in how Germany would recover, as surely if the American
banks could trust in it they could. All in all this package reassured the Allies that the
reparation payments would be satisfied, and also, for the Germans, the French agreed to
leave the Ruhr as they thought that they could now trust they could receive their
payments. This plan greatly boosted Germany’s economy, with Employment, Imports and
Exports, and also the Government income from taxation all improving. Most people were
very content with how it went, but there were however some extremists that thought
this was just an annoying admission that Germany was having to pay reparations when
they didn’t believe it was their right to.
Later on, Stresemann made further progress with the issue of reparations when the
Young Plan was setup in 1929. This plan reduced the total reparations from £6.6 Billion
to £2 Billion, and also gave Germany an extra 59 years to pay the total sum, as they
believed forcing them to pay it in such a short time was unrealistic and would stunt
economic growth. These measures made it possible to lower taxes, which firstly made
people happier, but also allowed German people to spend more which drove the
economy up. However, like the Dawes Plan, some people did not agree with the method
of dealing with the problem. Some thought that this extension was just passing on the
problem to a generation that hadn’t even been born yet, which incensed people like
Adolf Hitler, the leader of the Nazi Party.
In 1925 Stresemann also sought to make international relations better, by signing the
Locarno/Rhineland Pact. In essence, this was a treaty between Germany, Britain,
France, Italy and Belgium that cleared up where the border between Germany &
France and Belgium was. In return for a slight sacrifice from Germany the last Allied
troops left the Rhineland, France promised peace with Germany and the major
countries started considering letting Germany into the League of Nations. This was the
first real sign that Germany was being let to actually have a say in these agreements,
and wasn’t just being dictated to, even if they did lose a bit of land on the borders.
After consideration, in September 1926 Stresemann managed to get Germany accepted
into the League of Nations. Previously Germany had been excluded from membership,
even since it was founded by the Allies at the End of the First World War. The League of
Nations was essentially an International Body that tried to find ways to solve major
problems. Germany’s acceptance into the League of Nations Council was a major deal
and showed that Germany actually had power again, so much so that in 1926
Stresemann was actually awarded a Nobel Peace Prize for his accomplishments.
Finally, in August 1928 Germany, along with 65 other countries, signed an international
agreement that said they wouldn’t use war to achieve their foreign policy aims, the
Kellogg--Briand Pact. This was a sign that Germany was now seen as a respectable
member of the international community, and really showed normal people that the
Weimar Republic was working and was regaining Germany’s place on the world stage.
All of these measures, either helped or wholly done by Gustav Stresemann, allowed
Germany to restore economic (and also political) stability. Unlike many others,
Stresemann had largely managed to keep the support of parties on the left and right,
and up until his death on the 3 rd of October 1929 he allowed Germany to start
regaining its position in the world.