Morgenthau Plan

The Morgenthau Plan was a proposal to remove Germany’s heavy industry and reduce the country to an agricultural land after the war. Its significance in the account lies less in its implementation than in the sharp disagreement it exposed: Henry Morgenthau wanted the plan considered at Potsdam, while Harry S. Truman had never taken it seriously and Henry L. Stimson opposed it as a threat to Germany’s future stability.

Proposal and Opposition

Morgenthau’s plan called for stripping Germany of all heavy industry and making it an agricultural country. Truman had never taken the idea seriously. Stimson, by contrast, argued that a productive German economy was necessary to the future stability of Europe. He urged punishment for war criminals, permanent disarmament, and supervision of German government until the Nazi-educated generation had passed from public life, but opposed depriving Germany of the means to rebuild as a peaceful and contented society.

Potsdam and Morgenthau’s Resignation

Morgenthau was eager to take part in the Potsdam discussions and was deeply upset when he was not included. On July 5, 1945, he told Truman that it was essential for him to play a part at Potsdam and that he would resign if he could not. Truman accepted the resignation at once, and it was announced that same day. He appointed Fred M. Vinson to replace Morgenthau as Treasury secretary.

Scope and Significance

The account presents the plan as a disputed proposal, not an adopted policy: Truman had not taken it seriously, and Stimson explicitly argued against its central economic premise. Their disagreement marked a consequential contrast in postwar thinking—whether Germany’s defeat should entail lasting economic dismantlement or whether its capacity for peaceful recovery should be preserved. The evidence establishes the plan’s role in the dispute over Morgenthau’s participation at Potsdam, but does not describe its implementation.