- Germany was to pay major reparations* (approx. $55,000,000,000) after the war ended
- the money mainly went to France; however, Belgium got a large portion of it along with some going to Great Britain
- Being such a large sum of money, Germany couldn't even pay the interest and fell behind, putting their nation in debt.
- Established in hopes of destroying the possibility of another war of such magnitude from arising by crippling Germanys ability to do so
- When Germany couldn't pay the money, their materials were taken from them such as coal, iron and steel
- This (as mentioned on the War Guilt Clause page) angered the Germans, and contributed to the cause of WWII