Diplomacy, Economy, and Reform: Gustav Stresemann’s Legacy in Weimar Germany

How one leader shaped the fate of a nation amidst political and economic turmoil

This essay was written by Rachel Commissaris: a high school student from Vietnam

The idea of significance refers to something important or that has a meaningful impact (Cambridge, 2024). Gustav Stresemann, born on May 10th, 1878, was a prominent German statesman and politician. He played a crucial role in German politics during the Weimar Republic. Stresemann acted as chancellor for 6 months in 1923 and then became foreign minister from 1923 until 1929, when he tragically died. His significance can be measured through the short-term and long-term impacts on Germany and its people. Some of his short-term impacts were the introduction of the Rentenmark, which was a temporary currency, the coalition governments formed, and bringing a sense of confidence to the German population. On the contrary, he had just as many long-term impacts. Some of these include the implementation of the Dawes plan, his efforts with international relations, and his reconciliation agreements with foreign countries. This essay aims to prove that Stresemann was strongly significant in terms of political, foreign policy, economic, and military aspects for Germany and its people.

Emerging from the First World War, Stresemann had a strong political significance during 1918-1923. Stresemann called a halt to ‘passive resistance’ in the Ruhr (Southey, 2014). To those who hated the republic and particularly to the gangs of right-wing extremists, Stresemann’s decision was depicted as a betrayal. (Lacey and Shepherd et al., 1997) The policy was bankrupting Germany, so it took courage to abandon passive resistance, as many Germans felt that he was giving in to France. This made his decision even more significant because it demonstrates his unwavering determination to help Germany achieve its full potential, prioritizing the country’s interests above popular opinion, proving how far he is willing to go for his country. This was significant because Stresemann showed a willingness to engage in diplomatic negotiations and seek a peaceful resolution to the conflict instead of being militant and continuing to fight. In addition, the passive resistance campaign created divisions and tensions within German society. For example, German factory workers advocated for passive resistance against right-wing political forces and the government as they refused to cooperate. Whereas SPD was skeptical of the effectiveness and preferred more traditional methods (the Wiener Holocaust Library, NA). However, despite his efforts to fight against right-wing parties, the extremist parties gained support over time, which eventually contributed to the decline of the Weimar, showing that he was not so significant in the long term. Overall, Stresemann's ending of the campaign was significant because it provided Germany the opportunity for national reconciliation and instead allowed them to shift their focus to domestic political and economic challenges like solving the hyperinflation crisis.

Stresemann, the owner of the DVP (the German People’s Party), used his platform as chancellor to advocate for peace. His slogan was ‘every vote counts against civil war and inflation.’. (Hite, 2000) By doing this he showed the change in Germany’s attitude from retribution to reconciliation. In addition, he formed a coalition with other left-wing parties in government. (Morsey, R., 2023) His coalition brought together separate parties, creating a more stable political environment. Advocating for peace and forming coalitions were significant because Germany was more trustworthy to other nations. Establishing trust was the key to receiving financial aid from foreign nations helping Germany gain economic stability. Furthermore, he began to rebuild Germany’s image, allowing foreign nations to be more lenient with the terms of the treaty and assisting Germany in resolving its problems. (Hite, 2000). The treaty being more lenient would result in a reduction of reparations, providing Germany with more resources to build infrastructure, stimulating economic growth. This allowed the government to address the unemployment and poverty that took over the country, improving Germans' lives overall. (the wiener holocaust library, na). However, the treaty was never revised. In 1929, 5.8 million Germans voted for a law that rejected Stresemann's policy of fulfillment, which shows the problems with his policy. (St. Michael's history, 2024) Although he never got the treaty revised, he improved Germany’s image by advocating for peace, which helped him establish trust between countries, improving diplomatic relationships.

There were many significant things Stresemann did in terms of foreign policy that affected Germany socially. When Stresemann resigned from Chancellor, he continued to forge reconnections with Germany’s neighbors, restoring diplomatic ties and seeking international support. (Llewellyn, 2014). In 1925 the Locarno Treaty was signed as a result of Stresemann’s exchanging of notes between Paris and London. The treaty established the Franco-German and Belgian-German borders, also restoring normal diplomatic relations between Germany and her enemies. (Tikkanen, 2024) This was significant because it reduced the political tensions between countries, so the economic cooperation between countries rose significantly in trade and workers’ rights rules, enhancing international links and relations (mytutorweb, 2013). As a result of this economic growth, Stresemann was able to introduce reforms to help ordinary people, such as job centers, unemployment pay, and better housing (BBC, 2024). In addition, securing borders paved the way for Germany’s admission to the League of Nations. This was significant because joining the league would help Germany gain recognition after the isolation and scrutiny it had faced from World War 1. It showed that Germany was willing to engage in diplomatic relations and work towards reconciliation with other nations, which would help it rebuild its reputation. (tutor2u, 2019) Improving reputation was essential for attracting foreign investment and helped German people restore national pride and strengthen the sense of belonging within the population. Overall, the Locarno Treaty was significant because it restored diplomatic relationships, which helped many Germans gain economic stability during the 1920s, making a short-term impact on Germany.

In August 1928, Stresemann further demonstrated his significance to Germany and its people through the Kellogg Briand Pact. It was signed between over 60 countries and stated that these countries would never go to war against each other. Although Stresemann did not initiate this treaty, he fully supported it (Llewellyn, 2014). This was significant because his attitude gave the world the image of a new Germany, now not prioritizing militarism but instead committed to diplomacy and peace. By renouncing war, the pact allowed German people who sought stability after the war to participate in a global effort to promote peace. The Kellogg-Briand Pact is still in effect today, showing that it had a long-term impact on Germany. Although its rules have diminished, its principles have been integrated into broader international frameworks for peace (House of Commons, 2013). However, the significance of this pact is questioned as it did not stop the Second World War from happening (Office of the Historian, 2024). Overall, the Kellogg-Briand Pact helped Germany demonstrate its commitment to resolving conflicts through peaceful means.

Stresemann played a vital role in re-establishing Germany’s economic stability following the consequences of World War 1. In October 1923, Stresemann scrapped the old worthless money and introduced a new temporary currency called the rentenmark. This currency lasted about a year before the new permanent Reichsmark currency was brought in (Lacey and Shepherd et al., 1997). The Reichsmark served as a permanent currency for over 20 years until it was replaced in 1948, showing that it had a long-term impact on Germany. This was significant because the Reichsmark brought stability to the German currency after a period of hyperinflation and economic turmoil. It helped Germany facilitate trade as it enhanced investor confidence, both domestic and foreign, attracting more investments and encouraging small businesses in Germany to thrive. As the economy started to grow, there were more job opportunities available, allowing German people to go back to work and earn a stable income to support themselves and their families. Overall, the introduction of the rentenmark allowed industrial production to exceed pre-war levels for the first time (Cantrell et al., 2018).

In 1924 the Dawes Plan was signed by Stresemann as an attempt to solve the hyperinflation problem within the country. It also gave Germany a longer period to pay reparations. (cantrell et al,2018) More importantly, the USA lent Germany 800 million gold marks as a result of the ‘Dawes Plan’ kickstarting the German economy (BBC, 2024). This showed significance because the economy improved massively with rising factory production and an increase in foreign investment, which allowed for the modernization and expansion of German industries. Furthermore, this improved the living standards of many Germans as he used the money to create more job opportunities, reduce unemployment rates, and stop uprising extremists. There was also a rise in the number of votes supporting democracy, signaling a rejection of extremist ideas such as communism, which would have threatened the stability of the government, endangering the German people. This would make the left-wing parties mad. Therefore, the plan’s success in stabilizing the economy helped counter extremist movements that thrived in times of economic crisis. Overall, the Dawes Plan helped the lives of Germans improve as well as stopped the right-wing extremists from portraying an image of instability within the Weimar to other nations.

Although it was not Stresemann’s main objective, he accomplished many military achievements for Germany that were very significant. Diplomacy was used to attain military security and strengthen relations with other countries. For example, he opposed the Kapp Putsch in 1920 and believed that reform, not revolution, was the best way to protect Germany’s future. (Southey, 2014). Furthermore, he steered away from right-wing opposing forces while taking action against communist-influenced governments in Thuringia and Saxony. Stresemann was supportive of left-wing revolutionary attempts such as Adolf Hitler’s beer hall putsch (Morsey, R., 2023). His defiance helped to restore the legitimate government and maintain the fragile democratic order in Germany at the time. This was significant because it demonstrated to other nations that there was an influential person who was dedicated to upholding democratic governance and maintaining stability. Therefore, improving foreign policy relationships and giving the Weimar Republic a better reputation overall. This, in turn, gave him a more favorable position and made it easier for him to revise some of the punitive terms of the treaty to make it less harsh for the country’s benefit. In contrast, Stresemann’s significance in the military could be challenged as the lack of military resulted in few options open to him other than peaceful ones as he wanted to abide by the treaty’s terms, and they never got revised (St. Michael's history, 2024). To conclude, Stresemann showed the world that Germany was now dedicated to upholding democratic intentions, creating a renowned image of the ‘new Germany’ despite its lack of room to maneuver.

In conclusion, Stresemann was strongly significant in the areas of politics, foreign policy, economics, and military. He played a vital role in shaping the Weimar Republic and rebuilding Germany after World War I. His political significance was evident in his decision to stop passive resistance in the Ruhr despite accusations and opposition. He instead prioritized Germany’s growth over popular opinion, which paved the way for Germany’s reconciliation. Furthermore, his formation of coalition governments helped Germany gain international recognition and support, being beneficial to foreign relationships. His efforts in foreign policy, such as the Locarno Treaties and the Kellogg-Briand Pact, reduced tensions with other countries, improved Germany's reputation, and promoted economic cooperation. Stresemann's devotion to democracy and his opposition to right-wing extremists helped preserve Germany's fragile democratic system and strengthened the credibility of the Weimar Republic. All of these ideas were significant however supported the most significant problem solved by Stresemann, hyperinflation. He introduced a new currency, the rentenmark, which restored the German economy’s value and helped many Germans rebuild their lives again in just 3 months. On top of this, he signed the Dawes Plan, which forever stabilized the German economy. This set Germany on a path of stability, prosperity, and international recognition. Therefore, I believe Stresemann was strongly significant to Germany and the German people because his significance not only lies in his tangible achievements but also in his enduring commitment to the welfare of German people and his devotion to democratic principles.

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