"To what extent was the Dawes Plan a turning point for Germany, 1919-1933?" Explain your answer.
The Dawes Plan of 1924 was formulated to take Weimar Germany out of hyperinflation and to return Weimar's economy to some form of stability. It helped Germany return to its pre-war state. Economically, socially and politically Germany seemed to be more stable than it was in previous and following years. However, this stable period seemed to have been built on unstable foundations.
The economy appeared to have stabalised with the introduction of the Dawes Plan. Before 1924, Germany was experiencing hyperinflation. The old Papiermark was rapidly depreciating and so Germany had to print more and more of it to pay reparations. By December 1922 the Mark fell to 800 Marks per Dollar. This in turn led to the occupation of the industrial zone Ruhr by French and Belgian troops in January 1923. As Germany was struggling to pay its reparations, the French demanded payment by goods, German workers responded by adopting the policy of passive resistance.
By November 1923, the American dollar was worth 4,210,500,000,000 German marks. So, in 1924 the Dawes Plan was formulated. The first major decision was that the Ruhr was to be returned to the full control of the Germans. By removing French and Belgian troops from the Ruhr, the Dawes plan had removed the most grievous issue in the area as this had restricted levels of productivity. Furthermore, with the Dawes Plan, Stresemann was able to scrap the old Papiermark and introduce the new Rentenmark. Also, Weimar's national bank, the Reichsbank, was restructured under the supervision of the Allies. This was a turning point for Germany as this led them out of hyperinflation and allowed a functioning bank and currency to take over, bringing about economic growth...