German Young Government International 5.5% 1930 Uncancelled 1,000 Swiss Francs Gold Bond with Pass-co Authentication (Uncanceled)

International 5.5% Prozentige Anleihe Des Deutschen Reichs 1930 also known as the German Government Young Loan 1,000 Swiss Francs Denominated 5 1/2% Uncanceled Gold Bond with the traditional amount of 41 coupons attached with PASS-CO AUTHENTICATION.

The Young Plan was an initiative aimed at resolving Germany's reparations from World War I, formulated in August 1929 and officially adopted in 1930. This plan was introduced by a committee led by American industrialist Owen D. Young, who was the founder and former chairman of the Radio Corporation of America (RCA) and a member of the Rockefeller Foundation's board of trustees at that time. Young had previously participated in the restructuring of war reparations through the Dawes Plan of 1924. The Inter-Allied Reparations Commission had initially set the German reparation amount at a theoretical total of 132 billion marks, with a practical total of 50 billion gold marks. Following the implementation of the Dawes Plan in 1924, it became clear that Germany would be reluctant to fulfill the annual payments indefinitely. The Young Plan subsequently reduced these payments by approximately 20 percent. Although the theoretical total was established at 112 billion gold marks, which was roughly equivalent to $27 billion in 1929 (or about $121 billion in 2021), it was anticipated that the plan would not endure for more than a decade. Furthermore, the Young Plan structured the annual payment, set at two billion gold marks (approximately $473 million), into two parts: one unconditional portion, amounting to one-third of the total, and a postponable portion, comprising the remaining two-thirds, which would accrue interest and be financed by a consortium of American investment banks led by J.P. Morgan & Co.

The committee, established by the Allied Reparations Committee, convened in the early months of 1929 and presented its initial report on June 7 of that same year. The United States was represented by Young, along with the notable banker J. P. Morgan, Jr., and his associate, Thomas W. Lamont. The report faced significant opposition from the United Kingdom; however, following an initial conference in The Hague, a comprehensive plan was finalized on August 31. This plan was officially ratified during a second Hague Conference held in January 1930. Among its various provisions, the plan proposed the creation of an international bank of settlements to facilitate the transfer of reparations. Consequently, the Bank for International Settlements was established during the Hague Conference in January.

The Wall Street Crash of October 1929 occurred between the agreement and adoption of the plan, leading to two significant consequences. Firstly, the American banking system was compelled to withdraw funds from Europe and cancel the credits that facilitated the Young Plan. Secondly, the decline in both imports and exports had a global impact, resulting in the disappearance of nearly two-thirds of world trade by 1933. In response, a new trade policy was implemented through the Smoot–Hawley Tariff Act, which was shaped by nationalist sentiments and the prevailing economic strategy. Unemployment rates surged to 33.7% in Germany in 1931 and reached 40% in 1932. In light of these dire circumstances, U.S. President Herbert Hoover publicly proposed a one-year moratorium on payments. By July 1931, he successfully garnered support for this moratorium from 15 nations. However, the implementation of the moratorium had minimal effect on alleviating the economic downturn in Europe, where Germany faced a severe banking crisis. A final attempt to address the situation took place at the Lausanne Conference in 1932, where representatives from Great Britain, France, Italy, Belgium, Germany, and Japan convened to reach an agreement. By this point, it was evident that the worsening depression had rendered it impossible for Germany to continue its reparations payments. They reached a consensus:

Not to press Germany for immediate payments.

• To reduce indebtedness by nearly 90% & require Germany to prepare for the issuance of bonds.
• This provision was close to cancellation, reducing the German obligation from the original $32.3 billion to $713 million.
• It was also informally agreed among the delegates that these provisions would be ineffective unless the US government agreed to the cancellation of war debts owed by the Allied governments.

Hoover issued a necessary public statement denying any link between reparations and war debts. However, in December 1932, the U.S. Congress rejected the proposal for reducing Allied war debts, which effectively meant that the reparations and debts reverted to the terms established by the 1929 Young Plan for Germany. The financial system had already collapsed, and Germany ceased all payments. Following the consolidation of power by the National Socialist government, the debt was outright rejected, and Germany made no further contributions. By 1933, Germany had only fulfilled one-eighth of the reparations mandated by the Treaty of Versailles, and due to the repudiated American loans, the United States effectively ended up paying "reparations" to Germany. The plan ultimately proved unsuccessful, not solely due to the U.S. Congress's refusal to participate, but because it became obsolete with Hitler's ascension to power.

After Germany's defeat in World War II, an international conference known as the London Agreement on German External Debts in 1953 determined that Germany would only settle the remaining debt following the reunification of the country. Nevertheless, West Germany managed to pay off the principal by 1980. In 1995, after reunification, the new German government declared its intention to resume interest payments. Germany was scheduled to complete interest payments to the United States by 2010 and to other nations by 2020. In 2010, Time reported that Germany made its "final reparations-related payment for the Great War on October 3, nearly 92 years after the country's defeat by the Allies.”

This agreement was preceded by intense diplomatic conflicts, and its acceptance ignited nationalist fervor and resentment. Furthermore, it undermined rather than supported those advocating for a policy of international cooperation. While the Young Plan had significantly alleviated Germany's reparations obligations, it faced opposition from various factions within the German political landscape. Conservative groups were particularly vocal against reparations and capitalized on the dissent towards the Young Plan as a rallying point. A coalition emerged, uniting several conservative factions under the leadership of Alfred Hugenberg, who headed the German National People's Party. Among the groups that joined this coalition was Adolf Hitler and the National Socialist German Workers Party. The coalition aimed to implement the Freiheitsgesetz ("Liberty Law"). This legislation would reject all reparations and criminalize any cooperation by German officials in their collection. Additionally, it would disavow Germany's acceptance of "war guilt" and the occupation of German territories, both of which were stipulations of the Treaty of Versailles.

According to the provisions of the German constitution, if ten percent of the eligible electorate signed a petition advocating for a proposed law, the Reichstag was obligated to conduct a vote on the matter. Should the Reichstag reject the law, the proposal would then be subjected to a national referendum. If fifty percent of the electorate supported it, the law would be enacted. The proposal for the Liberty Law was formally introduced on October 16, 1929. The National Socialists, along with other factions, organized large public rallies to gather signatures. The government opposed the Liberty Law and orchestrated counter-demonstrations. Nevertheless, the coalition managed to amass sufficient signatures to present the proposal to the Reichstag.

Ultimately, the Reichstag rejected the bill with a vote of 318 against 82. In the subsequent popular vote held on December 22, during the Liberty Law referendum, voter turnout was merely 14.9%, yet an overwhelming 94.5% of those who voted (equivalent to 13.8% of registered voters) supported the proposed law. Although the Liberty Law was not enacted in 1929, the campaign surrounding it significantly contributed to the rise of Hitler and the National Socialists within the political landscape. Following this defeat, Hitler criticized Hugenberg, attributing the loss to his inadequate leadership. Hugenberg and several other conservatives soon found themselves overshadowed by the National Socialists. Subsequently, Hitler would implement most of the proposals outlined in the Liberty Law through decree after attaining power.

Events in 1930 Germany:

• 23 January - The Nazi Party gains its first minister as Wilhelm Frick becomes Minister of the Interior & Education in Thuringia as part of a right-wing coalition administration.
• 27 March - The government of Hermann Müller collapses.
• 30 March - A right of centre minority government takes office under Heinrich Brüning.
• 22 June - The growth of the Nazi Party continues as they become the second biggest party in the Landtag of Saxony
• 30 June - The French Army withdraws its troops from the Rhineland.
• 16 July - The government invokes Presidential Decree in order to force through its economic reforms.
• 18 July - The Social Democratic Party of Germany (SPD) force through a vote against the rule by decree resulting in the dissolution of the Reichstag & new elections.
• July - The German State Party is formed by a merger of the German Democratic Party & the Young German Order.
• 13 August - The Roman Catholic Archdiocese of Berlin is established.
• 14 September - The federal election sees the SPD remain as the biggest party but w/ the Nazis jumping into second place. Smaller gains are enjoyed by the Communist Party of Germany, the Christian-National Peasants' & Farmers' Party & the Centre Party whilst the main losers are the German National People's Party & the German People's Party.

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