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The Johnson Debt Default Act of 1934 is a U.S. law prohibiting future loans to nations that have defaulted on repayment of previous loans to the U.S. This law came about following the collapse of the international financial situation created by the Dawes Plan and subsequently modified by the Young Plan as a result of the Great Depression.
The U.S. was owed some $22 billions. In retaliation, Senator Hiram Johnson introduced and shepherded through Congress the Johnson Debt Default bill. It passed on April 13, 1934. The law forbids any new loans to nations that have not repaid their World War One debts.