Editing World War I reparations (section)

===Dawes Plan===
{{Main|Dawes Plan}}
[[File:Bundesarchiv Bild 102-00924, Berlin, Amerikanisches Gold für die Reichsbank.jpg|thumb|alt=men standing around looking at barrels|The first American gold arrives as per the Dawes Plan]]

Although the French succeeded in their objective during the Ruhr occupation, the Germans had wrecked their economy by funding passive resistance and brought about [[hyperinflation]].{{sfn|Marks|1978|p=245}} Under Anglo-American pressure and simultaneous decline in the value of the franc, France was increasingly isolated and her diplomatic position was weakened.{{sfn|Marks|1978|p=246}} In October 1923, a committee consisting of American, Belgian, British, French, German, and Italian experts and chaired by the former Director of the [[Office of Management and Budget|US Bureau of the Budget]] [[Charles G. Dawes]] was formed, to consider "from a purely technical standpoint", how to balance the German budget, stabilize the economy and set an achievable level of reparations.{{sfn|Bell|1997|pp=37–38}}

In April 1924, the [[Dawes Plan]] was accepted and it replaced the London schedule of payment. While the "C" Bonds were omitted from the plan's framework, they were not formally rescinded. French troops were to withdraw from the Ruhr, and a bank independent of the German Government, with a ruling body at least {{nowrap|50 per cent non-German}}, was to be established and the German currency was to be stabilized. The payment of reparations was also reorganized. In the first year following the implementation of the plan, Germany would have to pay {{nowrap|1 billion}} marks. This figure would rise to {{nowrap|2.5 billion}} marks per year by the fifth year of the plan. A Reparations Agency was established with Allied representatives to organize the payment of reparations. Furthermore, a loan of {{nowrap|800 million}} marks was to be raised{{mdash}}over 50 per cent coming from the United States, 25 per cent from Britain, and the balance from other European nations{{mdash}}to back the German currency and to aid in the payment of reparations.{{sfn|Bell|1997|pp=37–38}}{{sfn|Crafts|Fearon|2013|pp=82, 114}}