Dawes Plan, presented in 1924 by the committee headed (1923–24) by Charles G. Dawes Dawes, Charles Gates (dôz), 1865–1951, American statesman and banker, b. Marietta, Ohio.
..... Click the link for more information. to the Reparations Commission of the Allied nations. It was accepted the same year by Germany and the Allies. The Dawes committee consisted of ten representatives, two each from Belgium, France, Great Britain, Italy, and the United States; it was entrusted with finding a solution for the collection of the German reparations reparations, payments or other compensation offered as an indemnity for loss or damage. Although the term is used to cover payments made to Holocaust survivors and to Japanese Americans interned during World War II in so-called relocation camps (and used as well to
..... Click the link for more information. debt, set at almost 20 billion marks. Germany had been lagging in payment of this obligation, and the Dawes Plan provided that the Ruhr area be evacuated by Allied occupation troops, that reparation payment should begin at 1 billion marks for the first year and should rise over a period of four years to 2.5 billion marks per year, that the German Reichsbank be reorganized under Allied supervision, and that the sources for the reparation money should include transportation, excise, and custom taxes. The plan went into effect in Sept., 1924. Although German business picked up and reparations payments were made promptly, it became obvious that Germany could not long continue those huge annual payments. As a result, the Young Plan Young Plan, program for settlement of German reparations debts after World War I. It was presented by the committee headed (1929–30) by Owen D. Young. After the Dawes Plan was put into operation (1924), it became apparent that Germany could not meet the huge
..... Click the link for more information. was substituted in 1929.

Dawes Plan

(1924) Arrangement for Germany's payment of reparations to the Allies after World War I, produced by a committee of experts presided over by Charles Dawes. The total amount of reparations was not determined, but payments were to begin at 1 billion gold marks in the first year and rise to 2.5 billion by 1928. The plan, which also provided for the reorganization of the Reichsbank and for an initial foreign loan of 800 million marks to Germany, was later replaced by the more lenient Young Plan.