apr 1, 1924 - Dawes Plan

Description:

Stresemann agreed to the Dawes Plan, which was arranged by the Allies.

The main points of the Plan were that:
- reparations would be temporarily reduced to £50 million a year
- US banks would give loans to German industry

Stresemann had already called off the strikes in the Ruhr, and as a result of the Dawes Plan, the French agreed to leave the Ruhr.

Other positives of the Dawes Plan were:
- industrial output increased
- employment increased
- trade increased
- income from tax increased

Negatives of the Dawes Plan were:
- the economy was propped up by American loans
- extreme politicians were angry that Germany was still paying reparations

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