The Policies of Prosperity
Trade and Arms
Control
Before World War I the United States
had owed billions of dollars more to foreign investors than foreigners owed to
Americans. By the end of the war…
The Dawes Plan
The United States’
former wartime allies had difficulty making the payments on their immense war
debts. They claimed that high American tariffs had closed the American market
to their products and hampered their economic recovery. If they could not sell
their products in the United States, they could not acquire the money they
needed to pay off their war debts. They also argued that the United States
should be willing to bear more of the financial burden because it had suffered
far fewer wartime casualties than its allies.
The United States government took the
stance that American taxpayers should not be asked to assume the debts of
others. American officials argued further that America’s allies had gained new
territory as a result of the victory over Germany, while United States had gained
nothing. These countries also were receiving reparations—huge cash payments
Germany was required to make as punishment for starting the war and causing so
much destruction. These payments, however, were completely crippling the German
economy.
It was vital for the United States that
European economies be healthy so that the Europeans could buy American exports
and repay their war debt. Thus, in 1924, Charles G. Dawes, an American banker
and diplomat, negotiated an agreement with France, Britain, and Germany by
which American banks would make loans to the Germans that would enable them to
meet their reparations payments. At the same time, Britain and France would
accept less in reparations and pay more on their war debts.
Although well intended, the Dawes Plan
did little to ease Europe’s economic problems. Britain, France, and Germany
went through the motions of paying what they owed while in fact going deeper
into debt to American banks and corporations.
No comments:
Post a Comment