Social Sciences, asked by rpmandewal9909, 1 year ago

why was Dawes plan introduced

Answers

Answered by wajahatkincsem
6
thank you for asking the question !!!

The Dawes Plan came in 1924 after the World War 1. After world war one Germany was facing great difficulty in paying the reparations which they agreed under the Treaty of Versailles. The German government failed to fulfill these payments. So in 1923  troops of countries like French and Belgian occupied the Ruhr. This created massive inflation and unemployment in Germany.

Charles G. Dawes was an American banker who was asked by the "Allied Reparations Committee" to determine that problem and provide healthy and efficient solution. He proposed a plan in April 1924 for that problem.

The Dawes Plan gave short-term economic benefits to the German economy. It also softened the burdens of reparations caused by world war one. His plan stabilized the currency.He recommended that for better solution to those problems reorganization of the German State Bank is necessary and he increased foreign loans.

His Plan at that time was initially a great success.

Answered by Anonymous
6

Answer:

Germany did not pay repression payments to France, which occupied Ruhr. Germany resisted and printed paper currency. The value of German mark gradually fell. the Americans intervened and introduced the Dawes Plan, which reworked the terms of reparation payment to ease the financial burden on Germany.

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