aug 16, 1924 - the dawes plan

Description:

a plan in 1924 that successfully resolved the issue of World War I reparations that Germany had to pay. it was an agreement between the Allies and Germany. the basic idea behind the plan was to make it easier for Germany to pay reparations and had two key parts.

1. reparations were reduced in the short term to 50 million pounds per year

2. the United States gave loans of $25 billion to Germany to help rebuild its industrial capacity

as a result, reparations payments resumed, and the French occupation of the Ruhr ended.

however, many German politicians thought of it as a failure as it did not reduce reparations completely and put the German economy in the hands of foreigners.

this was important as Hitler could use this to manipulate the german public into electing under the guise of helping the Germany economy back into German hands.

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