Summary.
Attempt following World War I for the tripple entent to collect war reparations Germany was subject to following the Treaty of Versailles.
The Dawes Plan
- Proposed by the Dawes committee
- Attempt for the triple entent to collect war reparation from Germany
- After five years the plan proved unsuccessful
- It was then replaced by the Young Plan
- Here is an outline of the Dawes Plan:
- In an agreement of August 1924, the main points of The Dawes Plan were:
- The Ruhr area was to be evacuated by Allied occupation troops.
- Reparation payments would begin at “one billion marks the first year, increasing to two and a half billion marks annually after five years" (Merrill 93)
- The Reichsbank would be reorganized under Allied supervision.
- The sources for the reparation money would include transportation, excise, and custom taxes.
Summary.
A plan greatly lowering the reparation costs of germany making them (somewhat) manageable
The Young Plan
- Program for settlement of German reparations
- Presented to the committee by Owen D. Young
- Formally adopted in 1930
- Replaced the previous unpayable debt payments set by the Dawes Plan
- Changed debt to 112 billion Gold Marks over a period of 59 years