The Dawes Plan
Created | Updated Sep 14, 2002
The Dawes Plan was created so that Germany could afford the reparations they had to pay France. It seemed to solve the whole worlds money problems. America loaned money to Germany, Germany used it to pay for the reparations, France used it to pay Britain the money they owed, and Britain used it to pay America the money they owed. This seemed to be the perfect solution to everybody's problems, and countries started getting along with each other again. However, it had one major flaw. If anything went wrong, and one of the countries were no longer able to pay the other, then there would be hatred between countries again, and the situation could be worse then it was before. This happened in 1929 when the Great Depression came.