The Dawes Plan, 1924 &Young Plan, 1929
The Dawes Plan, 1924
- The USA recognizing that Germany was struggling. Lend Germany money and they use this money to create jobs and work projects. They get income tax, then use income tax to repay France
- France owes money to USA because they owe them from WW1
- USA gets all the money back from investments
- Weren’t isolationists
- Benefits them- trade partners
- The Young Plan,1929
- American banker Owen Young looks at reparation payments knowing Germans would never pay this off. Need to lower amount, can’t even pay interest. He suggested they reduce it by 75 percent. Enough so it was actually payable. Annual payments to be made on a scaled model over the period of 75 years
- Germans hate it (Hitler)
- Hated it because they didn’t drop everything all together like they think they should of. They’ve already paid for 10 years all this did was agree that the Treaty of Versailles was fair.
The two plans were designed to help out the united states as well as the other european countries.