Information Sheet 2
Gustav Stresemann (1878 – 1929)
Gustav Stresemann was born in 1878. He joined the Reichstag (German Parliament) in 1907 and before the First World War was leader of the National Liberal Party. In 1918 this party was replaced with the German People’s Party (DVP). The DVP became popular with small businessmen and the managerial classes. Stresemann had been fairly right wing in his views, but after the First World War he had come to realise that political parties within Germany had to work together if they wanted to prevent the new Republic from collapsing into chaos.
In 1923 Stresemann became Chancellor of Germany. He stayed in this post for 103 days between August and November, during which time the French and Belgians invaded the Ruhr – a heavily industrialised area of Germany. The French and Belgians were angry because Germany had not been keeping up with reparations payments. They wanted to take raw materials and goods from the Ruhr as payment. The German workers in the Ruhr reacted to the invasion with a policy of passive resistance. This added to the inflationary problems that already existed in Germany as workers on strike were paid out of public funds and production within the Ruhr came to a standstill. Stresemann eventually called off passive resistance in the Ruhr and, together with the finance minister, issued a new currency – the Rentenmark. Both of these actions helped to alleviate the problems caused by hyperinflation. Old bank notes were recalled and destroyed.
Towards the end of 1923 Stresemann became foreign minister, a post he was to stay in until his death in 1929. In 1924 the French and Belgians withdrew their troops from the Ruhr as theDawes Plan was drawn up and agreed by Germany, Britain, France and America. Under this plan the annual reparation payments were reduced and the Allies agreed not to occupy German territory even if the payment deadlines were not met. A large loan was also arranged to help Germany stabilise her economy and to build confidence in the Weimar government. The loan amounted to 800 million marks. Industry was revived and new production techniques adopted. By 1929 Germany was producing 33% more than it had done in 1913. This showed a faster economic growth rate than either Britain, or France. The Dawes Plan, which made much of this possible made clear however, that these loans were “short-term loans” which could be ended at any time. If this happened, repayment had to given in full.
In 1925 Germany, together with Italy, Britain, France and Belgium signed the Locarno Pact. This agreement was a peace pact that stated that none of the countries represented should attack each other as a means of solving arguments and disputes. It also stated that no country should try to change its borders or boundaries. These countries wanted to avoid future confrontations if at all possible. The cost of the First World War in terms of resources and lives had been horrific. Additionally France and Britain feared that if they treated Germany too harshly, Germany may have been tempted to ally itself with Russia. This would have severely threatened the stability (“status quo”) within Europe.
“The Spirit of Locarno” led, in 1926, to Germany’s application for and entry into the League of Nations. There seemed to be a general feeling that future and lasting peace within Europe could now become a reality. Germany was even given a permanent seat on the League Council and Gustav Stresemann and the French foreign minister, Aristide Briand, were awarded a Nobel Peace Prize for their part in the negotiations.
In 1928the Kellogg-Briand Pact (also known as the Pact of Paris) was signed by Germany and over 60 other countries. This renounced the use of war, condemning “recourse to war for the solution of international controversies.” The Young Plan followed in 1929 and built upon the Dawes Plan in that it extended reparations payments for a further 58 years. This aimed at furthering confidence in the German economy, which in turn would encourage more investment within Germany itself. Tragically, in the same year that the Young Plan was negotiated and signed Gustav Stresemann died. His death preceded another tragedy that was to severely affect the Weimar Republic – The Wall Street Crash (see information sheet 3).
Points for debate and discussion:
* Do you believe that there was greater economic stability within Germany between 1924-29?
* Do you believe that Germany’s entrance into the League of Nations affected
foreign attitudes towards Germany? How?
* How far had industry developed after 1924?
* Overall: How had Stresemann furthered Germany’s national interests?
* Overall: How far had Stresemann contributed to Germany’s economic
revival?
* Further research: How were Stresemann’s actions viewed by different
sections of German society? (eg different political parties,
businessmen, the lower classes)
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