Stresemann

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Stresemann

  1. 1. ESTABLISHING PEACE: RECONSTRUCTION AND RECOVERY 03/19/10 06:20 PM MSHS / Humanities / Vanessa Tan MSHS/Humanities/Vanessa Tan
  2. 2. STRESEMANN’S POLICIES 03/19/10 06:20 PM MSHS/Humanities/Vanessa Tan
  3. 3. Solved Economic Problems <ul><li>Ended Ruhr Crisis </li></ul><ul><li>In 1923 when the Germans could not pay reparations to France, French and Belgian troops occupied the Ruhr area and took coal, iron, and other resources as payment </li></ul><ul><li>Germans were angry and they refused to work in the Ruhr area – workers’ strike in the Ruhr worsened the fall in production </li></ul>03/19/10 06:20 PM MSHS/Humanities/Vanessa Tan
  4. 4. <ul><li>Ended Ruhr Crisis </li></ul><ul><li>Stresemann promised repayment of the reparations as soon as French troops left Ruhr and persuaded workers to return to work </li></ul>Solved Economic Problems 03/19/10 06:20 PM MSHS/Humanities/Vanessa Tan
  5. 5. <ul><li>Solved Hyperinflation </li></ul><ul><li>Due to the over-printing of money, Germany suffered severe inflation </li></ul><ul><li>1922 – highest denomination was 50,000 Mark </li></ul><ul><li>1923 – highest denomination was 100,000,000,000,000 Mark i.e. 1 trillion mark </li></ul><ul><li>In December 1923 the exchange rate was 4,200,000,000,000 Marks to 1 US dollar </li></ul><ul><li>Rate of inflation was 3.25 × 10 6 percent per month i.e. prices double every two days </li></ul>Solved Economic Problems 03/19/10 06:20 PM MSHS/Humanities/Vanessa Tan
  6. 6. <ul><li>Solved Hyperinflation </li></ul>Solved Economic Problems 03/19/10 06:20 PM MSHS/Humanities/Vanessa Tan
  7. 7. <ul><li>Solved Hyperinflation </li></ul><ul><li>The price increases began to be dizzying. Menus in cafes could not be revised quickly enough. A student at Freiburg University ordered a cup of coffee at a cafe. The price on the menu was 5,000 Marks. He had two cups. When the bill came, it was for 14,000 Marks. &quot;If you want to save money,&quot; he was told, &quot;and you want two cups of coffee, you should order them both at the same time.&quot; </li></ul>Solved Economic Problems 03/19/10 06:20 PM MSHS/Humanities/Vanessa Tan
  8. 8. <ul><li>Solved Hyperinflation </li></ul>Solved Economic Problems 03/19/10 06:20 PM MSHS/Humanities/Vanessa Tan 10 Million Mark, 25 July 1923 – can buy 12 pounds of meat
  9. 9. <ul><li>Solved Hyperinflation </li></ul>Solved Economic Problems 03/19/10 06:20 PM MSHS/Humanities/Vanessa Tan German Railroad* Note – 10 Million Mark 2 September 2 1923 can buy ½ pounds of meet *The German National Railroad, along with many companies and towns issued their own inflationary currency as the German Government was unable to print money fast enough to keep up with the inflation. These additional issues only further fuelled inflation by increasing the money supply
  10. 10. <ul><li>Solved Hyperinflation </li></ul>Solved Economic Problems 03/19/10 06:20 PM MSHS/Humanities/Vanessa Tan A 50,000,000 (50-million) mark
  11. 11. <ul><li>Solved Hyperinflation </li></ul>Solved Economic Problems 03/19/10 06:20 PM MSHS/Humanities/Vanessa Tan 1 Billion Mark 20 October 1923 – can buy ¾ pounds of meat
  12. 12. <ul><li>Solved Hyperinflation </li></ul>Solved Economic Problems 03/19/10 06:20 PM MSHS/Humanities/Vanessa Tan A 1000 Mark banknote, over-stamped in red with 1,000,000,000 (1 billion) mark
  13. 13. <ul><li>Solved Hyperinflation </li></ul>Solved Economic Problems 03/19/10 06:20 PM MSHS/Humanities/Vanessa Tan 100 Billion Mark, 3 November 1923 On November 1 100 Billion Mark would buy 3 pounds of meat. Bread is 3 Billion Mark a loaf. On November 15 100 Billion Mark would buy 2 glasses of beer Bread is 80 Billion Mark a loaf.
  14. 14. <ul><li>Solved Hyperinflation </li></ul>Solved Economic Problems 03/19/10 06:20 PM MSHS/Humanities/Vanessa Tan A medal commemorating Germany's 1923 hyperinflation. The engraving reads: &quot;On 1st November 1923 1 pound of bread cost 3 billion, 1 pound of meat: 36 billion, 1 glass of beer: 4 billion.&quot;
  15. 15. <ul><li>Solved Hyperinflation </li></ul><ul><li>Stresemann recalled & destroyed the old currency (papiermark) that was badly inflated </li></ul><ul><li>He issued a new currency – Rentenmark – the amount of new currency is reduced & limited so as to prevent inflation </li></ul><ul><li>By1924 the German economy stabilized </li></ul>Solved Economic Problems 03/19/10 06:20 PM MSHS/Humanities/Vanessa Tan
  16. 16. <ul><li>Dawes Plan </li></ul><ul><li>US loaned Germany 800 million gold marks which Germany used to end hyperinflation and pay reparations </li></ul><ul><li>Reparations was reduced and a more flexible time schedule for repayment based on its ability to pay </li></ul>Solved Economic Problems 03/19/10 06:20 PM MSHS/Humanities/Vanessa Tan
  17. 17. <ul><li>Young Plan 1929 </li></ul><ul><li>Further reduced reparations to US$2.6 billion (1/3 of original sum) </li></ul><ul><li>Repayment period extended to 59 years </li></ul><ul><li>American investments brought in – this improved Germany economy </li></ul>Solved Economic Problems 03/19/10 06:20 PM MSHS/Humanities/Vanessa Tan
  18. 18. <ul><li>Solved unemployment Problem </li></ul><ul><li>With the money, Stresemann managed to engage in building projects such as building of theaters, stadiums, swimming pools, and airfields. </li></ul><ul><li>These building projects required workers and thus led to a decline in unemployment </li></ul>Solved Economic Problems 03/19/10 06:20 PM MSHS/Humanities/Vanessa Tan
  19. 19. <ul><li>Treaty of Locarno </li></ul><ul><li>Signed with Britain, France, Italy and Belgium </li></ul><ul><li>Reaffirmed borders between Germany and France and Belgium as laid out in the Versailles Treaty i.e. promised that Germany would not expand its territories at the expense of France and Belgium </li></ul>Solved Economic Problems 03/19/10 06:20 PM MSHS/Humanities/Vanessa Tan
  20. 20. <ul><li>Treaty of Locarno </li></ul><ul><li>Germany also accepted Rhineland as a demilitarized zone </li></ul><ul><li>As a result of these guarantees, Germany managed to improve relations with France </li></ul>Solved Economic Problems 03/19/10 06:20 PM MSHS/Humanities/Vanessa Tan
  21. 21. <ul><li>Treaty of Cooperation with USSR </li></ul><ul><li>Allowed to build factories producing aeroplanes and tanks in the Soviet Union </li></ul><ul><li>Allowed Germany to carry out military exercises in the Soviet Union </li></ul><ul><li>In return, Germany promised to remain neutral if Russia were to go to war with other nations </li></ul>Solved Economic Problems 03/19/10 06:20 PM MSHS/Humanities/Vanessa Tan
  22. 22. <ul><li>League of Nations </li></ul><ul><li>Raised status of Germany by securing admission into League of Nations in 1926 – Germany was even given a permanent seat on the Council of the League. </li></ul><ul><li>Becoming a League member and gaining a permanent seat meant that Germany has regained its great power status </li></ul>Solved Economic Problems 03/19/10 06:20 PM MSHS/Humanities/Vanessa Tan

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