Question

How was Germany bailed out of economic crisis after the First World War?

Answer 1

The Dawes Plan (as proposed by the Dawes Committee, chaired by Charles G. Dawes) was an attempt in 1924 to solve the World War I reparations problem that Germany had to pay, which had bedevilled international politics following World War I and the Treaty of Versailles.

The occupation of the Ruhr industrial area by France and Belgium contributed to the hyperinflation crisis in Germany, partially because of its disabling effect on the German economy.[1] The plan provided for an end to the Allied occupation, and a staggered payment plan for Germany's payment of war reparations. Because the Plan resolved a serious international crisis, Dawes shared the Nobel Peace Prize in 1925 for his work.

It was an interim measure and proved unworkable. The Young Plan was adopted in 1929 to replace it.

Main points of the Dawes PlanEdit

In an agreement of August 1924, the main points of The Dawes Plan were:

The Ruhr area was to be evacuated by foreign troopsReparation payments would begin at one billion marks the first year, increasing annually to two and a half billion marks after five yearsThe Reichsbank would be re-organized under Allied supervisionThe sources for the reparation money would include transportation, excise, and customs taxesGermany would be loaned 800 million marks, chiefly from the US and Britain[4]

The Dawes Plan relied on capital lent to Germany by a consortium of American investment banks, led by J.P. Morgan & Co.under the supervision of the US State Department. The German economic state was precarious. The Dawes plan was based on the help of loans from the US that were unrelated to the previous war.

The plan was accepted by Germany, which was in no position to refuse, and by Britain and France, and went into effect in September 1924. Dawes and Sir Austen Chamberlainshared the Nobel Peace Prize.

The economy of Germany began to rebound during the mid-1920s and the country continued with the payment of reparations. However, the Dawes Plan was considered by the Germans as a temporary measure and they expected a revised solution in the future. In 1928, German Foreign Minister Gustav Stresemann called for a final plan to be established, and the Young Plan was enacted in 1929.

Answer 2

and the blaimed Germany for war that time the ruler of Germany was Kesar William second League of nation made a treaty that is called versalis that was very bad for Germany in the Treaty was returned that whole war compution Germany will pay the victory country.