Notes
- USA lends money to Germany which is spent on building up German economy
- Germany uses increased tax revenues to pay preparations to France
- France pays back war loans to the USA and imports US goods to help rebuild France
- was an attempt following World War I for the Triple Entente to collect war reparations debt from Germany.
- When after five years the plan proved to be unsuccessful, the Young Plan was adopted in 1929 to replace it.
Summary
USA lent money to Germany, who spent it all on building up their economy. Germany then used their increased taxes to pay reparations to France. With that money, France then paid USA back war loans and imports US goods.
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Political Cartoon:
Quote:
"There is no legislation--I care not what it is--tariff, railroads, corporations, or of a general political character, that all equ als in importance the putting of our banking and currency system on the sound basis proposed in the National Monetary Commission plan." -William Howard Taft
"There is no legislation--I care not what it is--tariff, railroads, corporations, or of a general political character, that all equ als in importance the putting of our banking and currency system on the sound basis proposed in the National Monetary Commission plan." -William Howard Taft
Subjunctive Question:
Where would Germany be now with their economy if the USA hadn't given them loans?
Where would Germany be now with their economy if the USA hadn't given them loans?