[Illustration: LORD KEYNES.] A REVISION OF THE TREATY A REVISION OF THE TREATY BEING A SEQUEL TO THE ECONOMIC CONSEQUENCES OF THE PEACE BY JOHN MAYNARD KEYNES, C.B. FELLOW OF KING’S COLLEGE, CAMBRIDGE [Illustration] NEW YORK HARCOURT, BRACE AND COMPANY 1922 COPYRIGHT, 1922, BY HARCOURT, BRACE AND COMPANY, INC. PRINTED IN THE U. S. A. BY THE QUINN BODEN & COMPANY RAHWAY, N. J. PREFACE _The Economic Consequences of the Peace_, which I published in December 1919, has been reprinted from time to time without revision or correction. So much has come to our knowledge since then, that a revised edition of that book would be out of place. I have thought it better, therefore, to leave it unaltered, and to collect together in this _Sequel_ the corrections and additions which the flow of events makes necessary, together with my reflections on the present facts. But this book is strictly what it represents itself to be—a _Sequel_; I might almost have said an Appendix. I have nothing very new to say on the fundamental issues. Some of the Remedies which I proposed two years ago are now everybody’s commonplaces, and I have nothing startling to add to them. My object is a strictly limited one, namely to provide facts and materials for an intelligent review of the Reparation Problem as it now is. “The great thing about this wood,” said M. Clemenceau of his pine forest in La Vendée, “is that, here, there is not the slightest chance of meeting Lloyd George or President Wilson. Nothing here but the squirrels.” I wish that I could claim the same advantages for this book. J. M. KEYNES. KING’S COLLEGE, CAMBRIDGE, _December_ 1921. CONTENTS CHAPTER I PAGE THE STATE OF OPINION 3 CHAPTER II FROM THE RATIFICATION OF THE TREATY OF VERSAILLES TO THE SECOND ULTIMATUM OF LONDON 11 EXCURSUS I.—COAL 44 EXCURSUS II.—THE LEGALITY OF OCCUPYING GERMANY EAST OF THE RHINE 57 CHAPTER III THE BURDEN OF THE LONDON SETTLEMENT 64 EXCURSUS III.—THE WIESBADEN AGREEMENT 92