Did the Republic Recover After 1923? (Cambridge (CIE) IGCSE History)

When President Ebert chose Gustav Stresemann as chancellor in August 1923, the German economy had crashed. The French invasion of the Ruhr had caused hyperinflation and the German currency, the mark, was worthless.

Stresemann was chancellor from August to November 1923. He made many decisions in an attempt to save Germany's economy. He brought inflation under control by implementing a new currency, the Rentenmark. Stresemann negotiated the Dawes (1924) and Young (1929) plans. This reduced Germany's reparations payments to the Allies.

By November 1923, Stresemann had lost his position as chancellor. The coalition government broke down when the SPD decided they no longer wanted to work with Stresemann’s party, the DVP. The next chancellor, Wilhelm Marx from the Centre Party, formed a coalition with the DVP and the DDP. Stresemann was appointed foreign minister by Marx.

As foreign minister, Stresemann pursued several treaties like Locarno and Kellogg-Briand. He aimed to build better relations with Europe and restore Germany’s reputation as a world power. Stresemann succeeded in his ambitions. In 1926, the League of Nations accepted Germany as a permanent member. In the same year, Stresemann won the Nobel Peace Prize. Stresemann died in office on 3rd October 1929.

Historians debate the success of Gustav Stresemann’s policies on the recovery of the Weimar Republic. Some historians argue that Stresemann saved the Republic. They state that his policies facilitated a ‘Golden Age' from 1923 to 1929. Between 1924 and 1929, the public’s support of moderate parties increased. Other historians highlight that Stresemann only delayed the failure of the Republic. The Dawes and Young plans meant that Germany was reliant on American economic success. If the USA’s economy failed, it would trigger a depression in Germany. The Wall Street Crash in the USA in 1929 ultimately caused the downfall of the Weimar Republic. 

“Stresemann did German democracy a disservice. Stresemann’s Republic was kept going by foreign success and the dose of success had constantly to be increased. Far from consolidating the Republic, Stresemann gave the Germans a taste for blood which the enemies of the Republic could more easily satisfy”

An extract from The Course of Germany History by A. J. P. Taylor. It was published in 1945

Stresemann ended the passive resistance in the Ruhr which increased Germany’s production capability

Germany’s economy was dependent on the US economy. In 1929, Stresemann stated that Germany was “dancing on a volcano”. If the USA recalled the loans or experienced a depression, the ‘volcano’ would erupt and destroy the stability of Weimar Germany

The Rentenmark meant that businesses could trade again with other countries

Rich and poor remained divided. Farmers particularly struggled with low prices

The Young Plan lowered reparation payments, which helped recover the economy. This increased the Allies’ confidence in Germany’s ability to pay the reparations bill

Unemployment remained at one million 

The Dawes Plan brought foreign investment into German industry. This eased tensions between Germany and the Allies

Boosted German citizens’ confidence in the Weimar Republic

Some people did not want anything to do with the League of Nations. It was associated with the hated Treaty of Versailles

Gained support for moderate parties

Created anger among extremist parties

Boosted German citizens’ confidence in the Weimar Republic

The Kellogg-Briand Pact did not remove the military restrictions imposed by the Treaty of Versailles. This angered extremist parties

The world saw Germany as a respectable and trustworthy state. They could enter into treaties as an equal to the other signatories

Many Germans thought other countries would move towards disarmament. Disappointingly, the pact did not promise this

The French and Belgian soldiers left the Ruhr in 1925. Stresemann’s approach helped created a stronger relationship between Germany and France

This was not enough for nationalists. They believed that the Allies got away with unacceptable actions

Politics in Germany stabilised. Moderate parties received more votes. In 1925, Paul von Hindenburg was elected president. This increased confidence in the Weimar Republic

Extremist parties still had 13% of the vote. Hindenburg was a right-wing nationalist who initially did not support the Weimar Republic

The Locarno Treaties, the Young Plan and Germany’s entrance into the League showed that countries accepted Germany back into European affairs

Nationalists criticised these actions. They were unhappy that the German government continued to follow the Treaty of Versailles