Dawes Plan

Dawes Plan

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  • The Dawes plan loaned money to Germany so it could pay reparations to Britain and France; in turn, those countries could repay the U.S. for wartime loans. This program damaged the reputation of the United States.
  • The creator of the Dawes Plan was Charles Gates Dawes. He was an American banker, general, diplomat, and Republican politician who was the 30th Vice President of the United States from 1925 to 1929.
  • The Ruhr area was to be evacuated by foreign troops
  • four main point of the Dawes Plan
  • Reparation payments would begin at one billion marks the first year, increasing annually to two and a half billion marks after five years
  • The Reichsbank would be re-organized under Allied supervision
  • The sources for the reparation money would include transportation, excise, and customs taxes
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