The+Dawes+Plan+1924

The Dawes Plan was a US backed plan for adjusting German reparations to ease the economic hardships and hyper-inflation that had plagued the country since the end of WWI. The Dawes Plan was known as “victory for financial realism”. It was supported mainly by the left wing and was officially accepted in April of 1924. The Dawes Plan made no actual change to the amount of money Germany owed, but extended the time the money was to be paid in, reducing the monthly payments. The Dawes Plan also set the value of the //rentenmark// at one billion old marks and provided for an 800 million dollar loan for economic aid. In the short term the plan succeeded in stimulating the German economy and stabilizing the currency, but the whole plan was dangerously dependent on the continuations of American funds that dried up suddenly during the great depression, to catastrophic effect. The Dawes Plan, however, improved relations between France and Germany because Germany finally began paying back the reparations from World War I.

Advantages: ~Germany's economic plan received international recognition for the first time since World War I. ~Germany gained credit for the cash-starved German economy by means of the loan and subsequent investments. ~The French promised to evacuate the Ruhr during 1925.

Works Cited [1] Layton, Geoff. __Weimar and the Rise of Nazi Germany.__ 3rd Edition. London. Hodder, 2005.