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Weimar's Survival Of The 1923 Crisis

799 words - 3 pages

Weimar's Survival of the 1923 Crisis

Introduction:

Weimar faced many problems such as economic instability, invasion of
the Ruhr and lack of support from the public and also from the
military, in the years of 1923 and 1924 but overcame them all for a
variety of reasons.

Hyperinflation and other debts:

Hyperinflation hit Germanyin early 1923 but was not resolved until
Stresemann was voted into power in August 1923 and recruited the
economist Schacht to help formulate a solution. The Deutschemark was
abolished and replaced with a new currency - the Rentenmark in Nov
1923. The supply of the new monetary system was strictly limited to
3200 million Rentenmarks. Domestic debts were reduced from 150million
deutschemarks to 15pfennigs (pence) by hyperinflation. Reparations
were re-scheduled by the Dawes plan in April 1924 as Germanyclaimed it
could not afford to pay them at the current rate and Germanywas given
an 800million Rentenmark loan by the USAto help stabilise the economy.

Invasion of the Ruhr:

Germanyjustified the Non-payment of reparations in January 1923 using
the invasion of the Ruhrby 60 000 French troops and hyperinflation as
evidence they could not afford reparation payments. The Dawes plan
(1924) helped to solve the issue of reparations and the invasion of
the Ruhrwas eventually solved when Stresemann came to chancellorship
and abolished the passive resistance policy in favoured by the Cuno
government as part of his foreign policy.

Stresemann's foreign policy:

The grand coalition was formed and this was more popular than the Cuno
government as the SPD was the most popular political party in Germanyat
the time. Stresemann was the driving force behind the Dawes plan and
his foreign policy helped to improve international relations. His
foreign policy increased sympathy for Germanyand leniency was also
improved as the harsh reparation schedule was renegotiated. His
abolition of the policy of passive resistance eventually brought the
invasion of the Ruhrto an end. This led to increased support for the
Weimarregime as it was seen to be a...

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