EXCURSUS IV.—THE MARK EXCHANGE 100 CHAPTER IV THE REPARATION BILL 106 EXCURSUS V.—RECEIPTS AND EXPENSES PRIOR TO MAY 1, 1921 131 EXCURSUS VI.—THE DIVISION OF RECEIPTS BETWEEN THE ALLIES 138 CHAPTER V THE LEGALITY OF THE CLAIM FOR PENSIONS 144 CHAPTER VI REPARATION, INTER–ALLY DEBT, AND INTERNATIONAL TRADE 163 CHAPTER VII THE REVISION OF THE TREATY AND THE SETTLEMENT OF EUROPE 179 APPENDIX OF DOCUMENTS I. SUMMARY OF SPA AGREEMENT (JULY 1920) 203 II. THE DECISIONS OF PARIS (JANUARY 1921) 207 III. THE CLAIMS SUBMITTED TO THE REPARATION COMMISSION (FEBRUARY 1921) 210 IV. THE FIRST ULTIMATUM OF LONDON (MARCH 1921) 213 V. THE GERMAN COUNTER–PROPOSAL (APRIL 1921) 215 VI. THE REPARATION COMMISSION’S ASSESSMENT (APRIL 1921) 219 VII. THE SECOND ULTIMATUM OF LONDON (MAY 1921) 219 VIII. SUMMARY OF THE WIESBADEN AGREEMENT (OCTOBER 1921) 228 IX. TABLES OF INTER–GOVERNMENTAL INDEBTEDNESS 238 INDEX 240 A REVISION OF THE TREATY BEING A SEQUEL TO THE ECONOMIC CONSEQUENCES OF THE PEACE CHAPTER I THE STATE OF OPINION It is the method of modern statesmen to talk as much folly as the public demand and to practise no more of it than is compatible with what they have said, trusting that such folly in action as must wait on folly in word will soon disclose itself as such, and furnish an opportunity for slipping back into wisdom,—the Montessori system for the child, the Public. He who contradicts this child will soon give place to other tutors. Praise, therefore, the beauty of the flames he wishes to touch, the music of the breaking toy; even urge him forward; yet waiting with vigilant care, the wise and kindly savior of Society, for the right moment to snatch him back, just singed and now attentive.