chapter 17

Allies' War Debts

• Allies struggled to repay war debts to the U.S. due to depleted financial resources.

Germany's Reparations Issues

• Germany faced severe difficulty in paying reparations because its economy was devastated and lacked industrial strength.

Dawes Plan

• The Dawes Plan aimed to alleviate these issues by:

  • Reducing the amount of reparations owed by Germany.

  • Facilitating loans from private institutions to support Germany’s economy.

  • Introducing more manageable payment plans.

American Concerns About Communism in the 1920s

• Americans were worried about communism due to frequent bombings and increased perception of communism as a coercive force spreading within society.