The Creation of the Dawes Plan

The Creation of the Dawes Plan

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  • August 16th, 1924
  • Here in Germany we need a plan to pay off our war debts quickly.
  • Germany addresses it's financial problem and asks for a way to complete their war debt payments faster. The United States wants to offer a solution 
  • The United States may be able to help
  • How So?
  • Dawes Offers Germany a Solution 
  • well I, Charles Dawes have developed a plan that I will oversee personally!
  • How does this plan work?
  • Dawes begins to explain the Dawes Plan to Germany and how it would start
  • Well the United States and Great Britain will loan you 800,000 marks to help start your repayments
  • And then what happens?
  • Dawes Explains the expectations the United States has for Germany that come with the plan
  • In the first year we expect 1 billion marks and by the 5th year we expect 2.5 billion marks plus our loan back plus interest
  • Seems fair to me. On behalf of Germany we accept the Dawes plan and we will begin our payments immediately! 
  • Germany accepts the terms of the Dawes Plan thus setting the plan into motion
  • wonderful! On behalf of the United States we look forward to business with Germany!
  • 5 years later 1929
  • Germany has paid off our war debts and our restrictions have been lifted!
  • 5 years later the Dawes Plan is complete. Germany has paid off their debts and the US has gained money from interest. The Plan is then considered very successful.
  • The Dawes Plan was a Success!
  • The Unite States gained money from the interest put on Germany quickly
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