ipl-logo

Germany's Failure Of The Dawes Plan For The Allies

1282 Words6 Pages

In the treaty of Versailles, the Allies wanted to draft a treaty that would not make Germany resent the other countries, as this situation would possibly lead to another war. Even though the Allies were trying to negotiate the terms in order not to stimulate acts of revenge in Germans, reparations payment exhausted the German economy and the people, and made it possible for the Nazi political party to seize the power.

In the peace talks and after the London Schedule of payments on April 27 1921, the Reparations Commission determined that Germany had to pay 132 billion gold marks in reparations equivalent to 100 000 tons of gold. A gold mark is an amount of gold that the currency could buy before the war. At that time even John Maynard Keynes, …show more content…

With the proposal of U.S. secretary of state Charles Evans Hughes, a commission was created to aid the financial situation in Germany. The Reparations Commission wanted U.S. representatives in the new commission, and therefore financial experts, such as Charles G. Dawes or Owen D. Young were suggested. On April 9. 1924, the Dawes plan was announced, which contained recommendation regarding Germany's financial situation. It recognized two serious problems. The Dawes plan addressed the two problems surrounding Germany, by reorganizing the Reichsbank, the German central bank, and to issue new monetary unit - the Reichsmark. According to the plan, the amount of Germany's reparations was determined to correspond to the financial health of Germany, and the plan ensured that it would not hurt the stability of the new monetary currency. However, Germany was only able to pay its reparations by borrowing more money from abroad. The Young plan adopted in 1930 therefore reduced the amount of reparations by further …show more content…

It was reported that shops changed their prices twice a day, because with the money that people could buy goods in the morning, they were not able to pay for the goods several hours later. Another example of the rapidly devaluating mark was that thieves were not stealing paper money, but rather the suitcases carrying the money, leaving the paper money on the floor. Even though people had a lot of banknotes and there was full employment, the economy was very poor with no goods available to buy, resulting in hunger and

Show More
Related

How Did Germany Cause Ww2 Dbq

791 Words | 4 Pages

After the war, another way, England and France wanted to ensure Germany could never become a global superpower again was by crippling. They were economy by making them pay debt to the entire world for “ causing the war.” Article 232 and 233 of the Versailles treaty states Germany, “Will make compensation ($367 billion) for all damages done. the entire obligations within a period of thirty years from May 1, 1921” (Doc C). Having to pay such a large amount of money destroyed the German economy and was overall shameful to the

Read More

Treaty Of Versailles Dbq Research Paper

575 Words | 3 Pages

Economic Reparations was another reason the Treaty of Versailles helped cause WWII as well. On the chart in document C it shows that Germany had 132 billion gold marks of reparation in 1921 (document C). This is a lot of money and if Germany pays this they would have no money. Germany paid little in the 1920s as they were salty on how much reparations there were and land they lost. I personally think that this is too harsh on them as it only made them even more mad thus helping cause

Read More

Treaty Of Versailles Dbq Essay

761 Words | 4 Pages

Hyperinflation became so grave that it became more economically viable for German citizens to burn German Marks to fuel their furnaces instead of buying real fuel, as four trillion German marks were equivalent to one U.S. dollar (Doc. 6-7). These economic troubles did not stay contained in Germany, for Germany consistently defaulted on its payments to countries relying on German reparations to keep their economy afloat, resulting in many other large European countries falling into extreme debt (Doc. 6). The Treaty of Versailles had no plan to preserve the economy of Europe (Doc. 3), rather only a very flimsy idea to make Germany fix everything, showing once again that its impacts did far more harm than good on the overall economic and political stability of Europe. The Treaty of Versailles also had no plan to stabilize the newly created countries of Europe or make Germany and its allies “into good neighbors” (Doc. 3, 8), all of which led to extreme instability and unpredictability in Europe, as well as the German government itself, a mistake which paved the way for the rise of Hitler and the Nazi

Read More

World War 1 Dbq Essay

1881 Words | 8 Pages

In the Treaty of Versailles, 1919 Article 232 and Article 233, it states that Germany had to take ownership for all of the damages done to the civilian population of the Allies during WWI and that they will have to pay reparations to said nations. The amount of money Germany has to pay will be decided by an Inter-Allied commission, which claims to give Germany a just opportunity to be heard. The payments of the reparations will be dealt out over a period of 30 years starting in 1921. “The Allies… require, and Germany undertakes, that she will make compensation for all damage done to the cilian population of the Allied and Associated powers'' (Document C) “The amount of … [reparations or payments] to be made by Germany shall be determined by an Inter-Allied Commission, …[which will] consider the claims and give to [Germany] a just opportunity to be heard” … “within a period of thirty years from May 1, 1921.”

Read More

Treaty Of Versailles Dbq Essay

799 Words | 4 Pages

The Allied Powers controlled this compensation so much that they could postpone payments at will (Doc C). In 1921, Germany debt began at a total of 132 billion gold marks, $367 billion in US dollars, and eight years later, only around 20 billion gold marks was cleared (Doc C). It took until October 3, 2010 to completely sette their debts after many postponements (CN Doc C). The compensation made in the Versailles Treaty caused Germany to cut back on many things just to pay off their charges and only increased their anger towards those who punish

Read More

World War 1 Dbq Essay

1154 Words | 5 Pages

German inflation occurred and their economy collapsed. Throughout 2 and 6 the ideals of debt for Germany are expressed. In document 2, John Maynard Keynes shares his work called The Economic Consequences of Peace. It basically discusses the severity of the economic depression in Germany. It also talks about how it could lead to starvation.

Read More

Versailles Treaty Dbq

1290 Words | 6 Pages

So in an attempt to avoid future conflict of the same scale, the Allies allowed the Central Powers no participation in the treaty’s negotiations, stripped Germany of many of its territories, blamed it for the war, and imposed substantial reparation payments. However, although the Allies were hopeful that these measures would ensure peace in the future, the Versailles Treaty has been cited as a

Read More

Causes Of The Treaty Of Versailles Dbq

486 Words | 2 Pages

Reparations are a form of payments. The author states that “The Commission shall…draw up a schedule of payments prescribing the time and manner for securing and discharging the entire obligations within a period of thirty years from May 1, 1921” They had to pay off 341 billion dollars worth of reparations (according to US dollars in 2010). These reparations were to be paid off over a period of 30 years. Germany thought this was unfair because they couldn’t afford to pay off the costs and because they too suffered during the war. Lastly Germany had to take blame for World War l.

Read More

Treaty Of Versailles Dbq Essay

921 Words | 4 Pages

It’s easy to say that Germany did not like this deal but was reluctantly forced into still paying. In Document C, the amount of damages that they had to pay was an appalling $367 billion dollars that was supposed to be paid back within 30 years. Paying for the reparations is regarded as one of the stepping stones into WW2 because of the fact that many Germans didn’t agree with it, so like all countries in a time of need with nowhere else to go they turned to one man, the man who started WW2. As soon as Adolf Hitler started to gain any sense of power and also had the power to enact movements in Germany he stopped paying the war reparations in 1933. This act of breaking the Treaty of Versailles is seen as one of the big pushes that lead into the next World

Read More

Second World War Dbq Essay

892 Words | 4 Pages

To try and stabilize the economy, German officials began printing money, but this only caused inflation making the money almost worthless. This caused widespread anger and humiliation throughout Germany (EQ - Doc C.). In conclusion, the Treaty of Versailles contributed to the start of World War II because it favored the Big Four (USA, France, Britain, and Italy), it took land from Germany and established demilitarized zones, limited the German army, and forced Germany to pay reparations. With all these factors pressing on the German people, people began wanting to get back at the other nations, and restore Germany and all of its

Read More

Indian Horse Themes

1090 Words | 5 Pages

The novel Indian Horse, by Richard Wagamese, depicts the societal injustices done to the Native Americans in the 1960s. The protagonist, Saul, endures an arduous journey that extends throughout his life. At the beginning of his life, he lived with his native family, only to get ripped away from them by an atrocious residential school. The horrid residential school, St. Jeromes, inflicted detrimental damage upon Saul, physically and emotionally. Saul was able to escape the confines of the school through hockey.

Read More

Herbert Hoover's Kansas In The Great Depression

510 Words | 3 Pages

In the cause of the depression Roosevelt came up with the plan of the NEW DEAL. In his new deal plan, he aim was to stop deflation. Though there were complications in regards to this

Read More

Why Did The Schlieffen Plan Fail

576 Words | 3 Pages

What was the Schlieffen Plan? The Schlieffen Plan was created by General Count Alfred von Schlieffen. It was actually started in 1897 and was finished about nine years later. The plan was to first attack France assuming they were weak and could be defeated easily, trying to make France surrender to between France and Germany, so they could fight Russia separately. He thought this was possible because he thought it would take Russia about six weeks to mobilize their troops.

Read More

How Effective Is The Main Downfall To Client Side Scripting?

932 Words | 4 Pages

Web server scripting Task 1 and task 2 Introduction Scripts are a set of instructions for what you want to happen or be on a certain page. There are two types of scripting, client side and server side, when using client side scripting you are writing instructions to the web browser whereas if you are using server side scripting you are writing instructions to the server. Client side scripting Client side scripting is used on the system that the web browser is running on. The commonly known JavaScript is the main client side scripting language.

Read More

Treaty Of Versailles Similar To Germany Essay

977 Words | 4 Pages

However German government printed more money to pay off the debt but it caused inflation. The government had 300 million papers and work 24 hours a day to pay a huge amount of debt. Germany wasn’t earning money properly, so it didn’t affect their wealth, which means they were still poor while they are keep making money. So prices of goods and education and services rose quickly. So many people didn’t go to the hospital, because it was too

Read More

More about Germany's Failure Of The Dawes Plan For The Allies

Related Topics

Open Document