The economic crisis of 1929–1933 was one of the most severe economic disasters in modern European history. Although it originated in the United States, its effects rapidly spread to Europe because of the close financial and commercial links established after the First World War. The crisis resulted in industrial decline, unemployment, banking failures, falling prices, reduced international trade and widespread social distress. The roots of the crisis lay partly in the unstable economic structure created after the First World War. European economies had suffered enormous destruction and accumulated heavy debts. Germany was particularly dependent on American loans for the payment of reparations and the reconstruction of its economy. The Dawes Plan of 1924 and the Young Plan of 1929 temporarily stabilized German finances, but they also increased dependence on foreign capital. When American banks began withdrawing their loans after the Wall Street Crash of October 1929, Germany and other European countries faced an immediate financial crisis. The crisis was intensified by overproduction in agriculture and industry. During the 1920s, production expanded faster than purchasing power in several countries. Agricultural prices declined, creating difficulties for farmers. Industrial enterprises accumulated unsold goods, leading to production cuts and dismissals. The collapse of the American stock market in October 1929 destroyed confidence and encouraged investors to