The Dawes Plan and Economic Recovery

The Weimar economic recovery Dawes Plan marked a turning point in Germany's post-war reconstruction. Under the leadership of Gustav Stresemann, Germany successfully negotiated more manageable reparation terms with the Allied powers. The plan, implemented in September 1924, established a graduated payment system starting at 1 billion marks and increasing to 2.5 billion marks over four years.

Definition: The Dawes Plan was a 1924 agreement that restructured Germany's reparation payments and provided international financial support for economic recovery.

Highlight: The plan's success hinged on Gustav Stresemann's reparation negotiation skills and his ability to convince Allied powers of Germany's need for more realistic payment terms.

Example: The payment structure was carefully designed - starting at 1 billion marks in the first year and gradually increasing to 2.5 billion marks annually, demonstrating a more realistic approach to Germany's economic capabilities.

Quote: "These payments were far more sensible and manageable and were based upon Germany's capacity to pay."

Vocabulary: Reichsbank - Germany's central bank during this period, which was reorganized under Allied supervision as part of the Dawes Plan.

The plan included several key provisions:

• Evacuation of the Ruhr area by Allied troops (completed in 1925)
• Reorganization of the Reichsbank under Allied supervision
• Implementation of US loans Germany 1924 economic stabilization measures to support recovery