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Unformatted text preview: eaty (Open Door
China), and the Four-Power Treaty (possessions
in the Pacific). However, there was no limit on
other stuff or enforcement clauses. Locarno Pact (1925): Series of agreements that
tried to reduce tension between Germany and
France. Kellogg-Briand Pact (1928): Outlawed war. Too
bad it didn’t work out.
- Additionally, throughout the 1920s Secretary of State
Hughes felt that American economic expansion could
help promote prosperity worldwide, eliminating the need
for war. So the American Relief Administration
delivered food to Europe both to stimulate growth and
hopefully stop radicalism.
*1920 – 1930: Economic/Cultural Expansion and the
- Following WWI, the US was a creditor nation and the
financial capital of the world. In addition to giving us
power internationally this made it easier for us to spread
our culture – Coca-Cola, movies, mass-production, and
- The government helped the process of US economic
and cultural expansion along…
212 Webb-Pomerene Act (1918): Excluded
companies set up for export trade from antitrust
laws. Edge Act (1919): Allowed American banks to
open foreign branches. The Dept. of Commerce also took it upon itself to
gather information abroad. Foreign loans by
American investors were also encouraged.
- Europeans watched nervously, and were just a little
pissed about the US handling of WWI debts, which it
insisted on collecting in full.
- The big issue really lay with Germany’s huge bills,
which it began defaulting on due to inflation. US bankers
then loaned money to Germany, which went to the Allies,
and then back to the US. The Dawes Plan (1924)
increased the cycle by providing more loans and
reducing the yearly repayment.
- Then in 1928/1929, Americans stopped investing
abroad and concentrated more on the stock market at
home. The Young Plan (1928) reduced Germany’s
reparations but was too little too late.
- The Great Depression brought the world economy to a
standstill, and when Hoover declared a moratorium on
payments in 1931, hardly any of the money had been
repaid. Annoyed, we passed the Johnson...
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- Fall '10