Key provisions of the Dawes Plan:
1. Reduction in Reparations: The plan reduced Germany's annual reparations payments from 2.5 billion gold marks to 1 billion gold marks.
2. Foreign Loan: The plan facilitated a foreign loan of 800 million gold marks to Germany to stabilize its currency and support economic recovery.
3. Allied Oversight: An Allied Transfer Committee was created to oversee Germany's financial administration and ensure reparations payments.
4. Currency Stabilization: The plan introduced the Rentenmark, a new currency backed by gold and foreign exchange reserves, replacing the unstable paper mark.
5. Control over the Reichsbank: The Reichsbank, Germany's central bank, was reorganized under Allied supervision to ensure prudent monetary policies.
The Dawes Plan provided temporary economic stability to Germany and allowed it to resume its international trade. However, it did not address the long-term issue of Germany's war guilt or the underlying economic and political problems that would eventually lead to the rise of Adolf Hitler and World War II.
The Dawes Plan was later replaced by the Young Plan in 1929, which further revised Germany's reparations obligations and provided additional financial assistance.