Verified answer

When Stresemann became Chancellor he:

• Called off the Ruhr strike,which was making the problem of hyperinflation worse.

• Negotiated longer to pay reparations (1924 Dawes plan), started repaying them- later they were reduced ; (Young Plan 1929.)

• Replaced old currency with new ‘Rentenmark ‘ (=3000million old marks), got inflation under control

• Persuaded the French to leave Ruhr (1925)

• Borrowed money from USA (25000million gold marks)- used it to build-houses, factories, roads, railways- economy revived

• Set up financial help for unemployed people

• United ‘centre’ parties in a coalition

• Negotiated Treaty of Locarno (non-aggression pact with GB/France)-which led to :Germany being allowed join League of Nations, and Allied troops out of Rhineland, but Germany gave up its claim to Alsace-Lorraine.

Stresemann therefore restored stability to Germany; but this could only continue in a favourable world economic climate.

He himself realised this that the success of the Weimar Republic now depended completely on loans from USA. :

“The German economy is doing well only on the surface. Germany is in fact dancing on a volcano. If the short-term loans are called in by America, most of our economy will collapse” (early Oct 1929)

This did happen after the Wall Street Crash. Stresemann died on October 3 1929, 3 weeks before the Crash.