Under the Versailles Peace Treaty of 1919, the German Government accepted the responsibility to pay reparations to the Allied Powers for losses sustained by the Allied powers as a consequence of World War I. Because of Germany's dire financial and economic predicament following World War I, Germany was unable to fulfill the reparations obligations imposed on it by the Versailles Peace Treaty. To stabilize Germany's currency and economy, it was provided under the Dawes Plan that a loan of 800 million gold marks, known as the German External Loan 1924 (“Dawes Loan”), be made in international markets in various currencies. After the successful placement in the United States of America of 110 million U. S. Gold Dollars worth of the Dawes bonds, various municipalities, bank syndications and corporations within Germany entered the international markets with nearly 100 additional bond offerings between 1924 and 1929. The German Government honored its obligations under the Dawes Loan through April 15, 1933, in accordance with the provisions stipulated in the instrument. Thereafter, the German Government reduced its fulfillment of its obligations to the bondholders, and by official letter dated June 14, 1934, the German government totally breached its obligations under the Dawes Loan agreements by suspending the remaining interest payments. From 1934 to 1941 attempts were made to pacify investors. Offers were made to bondholders who allowed their bonds to be stamped “U.S.A. Domicile 1st October 1935” whereby the bondholder would receive some cash and mostly blocked currency “script” of the Nazi regime. The American bondholders were openly discriminated against in spite of formal protests by the American Government.