How Far Did the Weimar Republic Recover Under Stresemann?
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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. Germanys 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.
Stresemanns 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 Germanys 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 peoples 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 Germanys economy began to function well again. In the short term this had a positive effect on German economy however the long-term effects meant that the German economy was becoming dependent on the loans from the USA and ready to return to crisis.
Bringing economic stability to Germany made The Weimar Government popular with the German people, however due to democracy, the minority parties still existed in the Reichstag and they had a certain amount of power when it came to decision making, meaning Stresemann had to fight against the extremist rivals in his own government. Economically stability made Stresemann very popular therefore there was a lack of support for extremist parties such as the National Socialists and the Communists as the people felt no need for a dramatic change in how the country was run. Even though their general popularity with the German people had declined, and they didnt hold many seats in the Reichstag, they were still allowed to exist and campaign, so they were waiting for the right time to attempt a takeover. Most of the political instability in the Reichstag was caused by proportional representation, which became a disaster as no party was strong enough to become the majority and the Reichstag was made up of dozens of tiny parties, all with conflicting views. This meant that decision making was difficult parties which did not agree with Stresemanns party could overturn many decisions meaning that a large amount of power was given to extremist parties and those which opposed Stresemann. This meant that progress couldnt be made easily and also that the Weimar Government could easily lose control of the parliament.
Stresemann also turned his eye to solving many political problems, both German and international, which had been caused as a result of the First World War, his key targets being tackling the Treaty of Versailles and restoring world confidence in Germany. After the First World War and the Treaty of Versailles, Germany had been humiliated and isolated from European affairs. Stresemann pushed to reintegrate Germany into international politics, as this would boost Germany and its status. This gained Stresemann popularity with the German people as he began to reverse the terms, which