CAS IR 349 Lecture Notes - Lecture 12: Dawes Plan, Calvin Coolidge, Iron Ore
18 May 2018
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American Intervention, 1924-1929:
President: Calvin Coolidge
He as’t a ig fa of iteetio.
April 1924: Charles G Dawes lands in the UK from US and proposed non-governmental intervention to
stabilize Germany and through that Europe.
Dawes Plan of 1924:
- Creates a massive fund created by American banks loaned to German banks
- To produce new, less inflated currency for Germany to repay those reparations
later on.
- It entailed that the new financial advisors would be Americans. At least some of
them.
- The goeet as’t ioled ut it poided the euied apital fo akig
stable the European market
- It worked and produced economic stability in Germany and then in other
countries
2 years after the Dawes Plan: France sponsors Germany into the League of Nations
5 years after the Dawes Plan: Germany again seems to be running out of money
This is when Owen D. Young, similar to the idea of Dawes provides loans to the government of Germany.
Owen however, also proposes the creation of international bank that would provide short-term loans to
deal with this debt issues – something like IMF but continentally based.
Cash Flow:
First American loans to Germany.
This allows for German reparation payment to European powers
This allows other countries to pay back their loans to US.
However, they were being paid back in their own money in the short run, however, in the long run
Germany would pay back the loans they took- even the private ones.
The only problem is it solidifies US and New York as the financial capital of the world. So as long as the US
economy was stable everything was right.
% Export value Increases, 1913-1929:
See graph in lecture slide.
It shows that Britains economy had started to recover.
So was France and Germany. Germany had to be selling goods and get foreign money in order to pay
reparations.
But these ieases i foeig tade as othig opaed to that of US. US’s shae douled hile Japa’s
trebled.
Imperial America:
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