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Germany 1919–45

The Weimar economy 1924–29

  • 3 things to know
  • AS Unit 1

Overview

The Dawes Plan and American loans, the return of the mark, the strengths and weaknesses of the recovery and the Young Plan.

What you need to know

Answer each one before you reveal it.

Your recallNot started
Key term

State what the Dawes Plan of 1924 did.

Numbers

What did the Young Plan of 1929 change?

Numbers

How dependent was the recovery on foreign money?

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    State what the Dawes Plan of 1924 did.

    Model answer

    The Dawes Plan rescheduled reparations on a sliding scale starting at one thousand million marks a year, reorganised the Reichsbank under international supervision and brought Germany a large American loan.

  2. 2

    What did the Young Plan of 1929 change?

    Model answer

    The Young Plan cut the total reparations bill to about 112 thousand million marks, spread payments until 1988 and removed foreign supervision of German finances.

  3. 3

    How did nationalists respond to the Young Plan?

    Model answer

    Hugenberg's nationalists and the Nazis campaigned for a Freedom Law rejecting the plan and punishing ministers who signed it, and although the referendum failed the campaign gave Hitler national publicity and respectable allies.

  4. 4

    How dependent was the recovery on foreign money?

    Model answer

    Germany borrowed some twenty-five thousand million marks between 1924 and 1930, much of it short-term American credit that funded long-term investment and could be recalled at short notice.

  5. 5

    What signs of genuine recovery were there by 1928?

    Model answer

    Industrial production passed its pre-war level in 1928, exports grew, the currency was stable, and new factories, power stations and public housing were built with the borrowed money.

  6. 6

    What happened to wages and working conditions in these years?

    Model answer

    Real wages rose every year from 1924 and were the highest in German history by 1928, and hours were regulated by compulsory arbitration in wage disputes.

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