A Revision of the Treaty: Being a Sequel to The Economic Consequence of the PeaceKeynes, John Maynard
History
A Revision of the Treaty: Being a Sequel to The Economic Consequence of the Peace
Keynes, John Maynard
Treaty of Versailles (1919 June 28); World War, 1914-1918 -- Reparations
Yet this problem is fundamental. Payment takes on a different aspect
when, instead of being expressed in terms of milliards and as a
liability of the transitory abstraction, it is translated into a
demand for a definite sum from a specific individual. This stage is not
yet reached, and until it is reached the full intrinsic difficulty will
not be felt. For at this stage the struggle ceases to be primarily one
between the Allies and the German Government and becomes a struggle
between different sections and classes of Germans. The struggle will
be bitter and violent, for it will present itself to each of the
contesting interests as an affair of life and death. The most powerful
influences and motives of self–interest and self–preservation will be
engaged. Conflicting conceptions of the end and nature of Society will
be ranged in conflict. A Government which makes a serious attempt to
cover its liabilities will inevitably fall from power.
(3) What relation do the demands bear to the third test of capacity,
the present income of the German people? A burden of 70 milliard paper
marks (if we may, provisionally, adopt that figure as the basis of our
calculations) amounts, since the population is now about 60 millions,
to 1170 marks per head for every man, woman, and child.
The great changes in money values have made it difficult, in all
countries, to obtain estimates of the national income in terms of money
under the new conditions. The Brussels Conference of 1920, on the basis
of inquiries made in 1919 and at the beginning of 1920, estimated the
German income per head at 3900 paper marks. This figure may have
been too low at the time, and, on account of the further depreciation
of the mark, is certainly too low now. A writer in the _Deutsche
Allgemeine Zeitung_ (Feb. 14, 1921), working on the statistics of
statutory deductions from wages and on income–tax, arrived at a figure
of 2333 marks per head. This figure also is likely to be too low,
partly because the statistics must mainly refer to earlier dates when
the mark was less depreciated, and partly because all such statistics
necessarily suffer from evasions. At the other extreme lies the
estimate of Dr. Albert Lansburgh, who, by implication (_Die Bank_,
March 1921), estimated the income per head at 6570 marks.[50] Another
recent estimate is that of Dr. Arthur Heichen in the _Pester Lloyd_
(June 5, 1921), who put the figure at 4450 marks. In a newspaper
article published in various quarters in August 1921 I ventured to
adopt the figure of 5000 marks as the nearest estimate I could make.
In fixing on this figure I was influenced by the above estimates, and
also by statistics as to the general level of salaries and wages. Since
then I have looked into the matter further and am still of the opinion
that this figure was high enough for that date.
Public-domain text, read in full here on John Shaqi.
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