Charles Gates Dawes – A Nobel Prize Based On Reparations
C. G. Dawes was not only a common was American banker and politician. Having different friendships he soon was in prominent positions. Due to that after graduating from Marietta College in 1884 and the Cincinnati Law School in 1886 he started a very fast political career. After McKinley’s election as President of the United States Dawes became Comptroller of the Currency. In October 1901 he left the Department of the Treasury and tried to pursue a Senate seat in Illinois. After this plan was failing Charles G. Dawes declared C. G. Dawes served as President of Central Trust Company of Illinois until 1921. Beside that business life Charles Gates Dawes also had a military engagement during the First World War.
This World War I was lost by the German Empire. Following the results of the Peace Treaty of Versailles the German Empire had to agree that the Rhineland will become a demilitarized zone administered by France and Great Britain. More about that its armed forces had to be limited. Also it lost its colonies and territories, for example West Prussia, Alsace and Lorraine. Finally the Saarland province was to be controlled by the League of Nations for 15 years. Anyway, the most targeting result have been the reparations in a total sum of 226 billion Reichsmarks in gold 132 billion Reichsmarks was not able to prevent a gigantic hyperinflation period in the German Weimar Republic. When the German Weimar Republic reparations in the year of 1921 an increasingly rapid devaluation of the Mark began. Staying relatively stable at about 60 Marks per US Dollar during the first half of the year of 1921, the rate climbed to approx. 330 Marks per US Dollar in November. Devaluating to 8000 Marks per Dollar by December 1922, France and Belgium wanted to ensure that their reparations will be still paid. While in 1923 French and Belgian troops occupied the industrial region of Germany in the Ruhr valley to save the coal, Germanys financial system collapsed. At the peak the rate was approx. 4,200,000,000,000 Marks per US Dollar – banknotes with a face value of 5,000,000,000,000 Marks unfortunately were no rarity …
This crisis needed a solution. Because of that as a new currency the Rentenmark) was introduced – having a fixed value and being secured by real estate.
Anyway, there was no solution regarding the payment of the reparations. Here Charles Gates Dawes was asked by the Allied Reparations Commission to propose a solution to which all parties could agree. Following the results of an agreement of August 1924 the Ruhr area was to be evacuated, also some other changes were signed. One of the most important aspects was the issue of German External Loans. These bonds substituted the German economy with fresh US money. Being issued in US Dollar and underlaid with gold they are called German Gold Bonds. Although this could not prevent the crisis of 1929, C. G. Dawes received the Nobel Peace Prize in 1925.
Find out handy recommendations about Tanning – study this webpage.
Read more on Charles Gates Dawes – A Nobel Prize Based On Reparations…
Popularity: 1% [?]
.gif)
