The Dawes Plan was successful in dealing with massive inflation in Germany, but the stock market crash of 1929 created new problems for the German economy. The Allied Reparations Committee asked American banker Owen Young to form a committee to solve this problem. His report suggested that the total amount to be paid be reduced by 75%, and payments to the Allies should be made on a sliding scale until 1988.
The Young Plan, which set the total payment at $26,350,000,000, was accepted by the governments but was criticized by right-wing German politicians. Hjalmar Schacht, president of the Reichsbank, resigned from office in protest. The annual payment was split into two elements--an unconditional part, comprising one third of payment, with the remainder being postponable. German companies with US affilitations were able to evade the Young Plan, by using temporary foreign ownership. For example, German General Electric (A.E.G.) was sold to a Franco-Belgian holding company. Because of growing unemployment in Germany, reparation payments were cancelled entirely, with only one eighth of the original total payed.