The Young Plan 1929
The Dawes Plan had attempted to deal with the massive inflation and large-scale unemployment in Germany that had been caused by reparations ordered as part of the Treaty of Versailles. However, the German government continued to complain at the level of reparations. In 1929 the Allied Reparations Committee asked an American banker, Owen D. Young, to investigate the situation.
The Young Plan
- It suggested that reparations should be reduced by about three-quarters and that Germany should make annual payments on a sliding-scale up to 1988.
- After the Dawes Plan was put into operation in September 1924, it became apparent that Germany could not meet the huge annual payments, especially over an indefinite period of time.
- The Young Plan set total reparations at $26,350,000,000 to be paid over a period of 58 years.
- It was adopted by the Allied Powers in 1930 and replaced the Dawes…