Dawes Plan Flashcards
Dawes Plan
Background Fact 2 - Charles Dawes
In 1923 Charles Dawes was tasked by the Allied Reparations Commission to think of solutions to further fight against hyperinflation.
Dawes Plan
US Funding
- The USA gave Germany a loan of 800 million marks as part of Dawes Plan.
✓ This helped to stabalise Germany’s economy and helped with their budget deficit.
x However overtime, Germany became over-reliant on US funding, which became a problem during the depression after the Wall Street Crash in America.
Dawes Plan
Split Payments
- Through the Dawes Plan, Germany was obligated to pay 1 billion marks of reparations in the first year of the plan, and then 2.5 billion per year after.
✓ This gave Germany a sum of money and goal to work towards, making it easier to pay off the large sum of reparations in sections.
x However, made reparation payments take a very long amount of time.
Dawes Plan
Allied Troops
- Allied troops were made to leave the Ruhr through the Dawes Plan.
✓ This stopped the killings in the Ruhr between allied forces and the German population.
x However, this put pressure on Germany to pay off reparations completely and angered French and Belgian forces already in the Ruhr.
Dawes Plan
Historians - US Funding
Detlev Peukert - The Dawes Plan “granted Germany a reasonable scale of reparations payments” however it made Germany too reliant on American loan.
Dawes Plan
Historians - Allied Troops
Eberhard Kolb - the Dawes Plan “had some decisive advantages” for Germany. It “eased relations between Germany and the Allies”.
