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
million dollars.’ Are we not now clearly precluded from saying, ‘You
can have peace provided you perform other acts of reparation which will
bring your total liability to many times that which was originally
stipulated’? No; irrespective of the justice of the enemy making the
latter reparation, it is now too late. Our bargain has been struck for
better or for worse; it remains only to give it a fair construction and
practical application.”
It is a shameful memory that the British delegates never withdrew their
full demands, to which they were still adhering when, in March 1921,
the question was taken out of their hands by the Supreme Council. The
American Delegation cabled to the President, who was then at sea,
for support in maintaining their position, to which he replied that
the American Delegation should dissent, and if necessary dissent
publicly, from a procedure which “is clearly inconsistent with what
we deliberately led the enemy to expect and cannot now honorably alter
simply because we have the power.”[105]
After this the discussions entered on a new phase. The British and
French Prime Ministers abandoned the contentions of their delegates,
admitted the binding force of the words contained in their Note of
November 5, 1918, and settled down to extract some meaning from
these words which would compose their differences and satisfy
their constituents. What constituted “damage done to the civilian
population”? Could not this be made to cover military pensions and the
separation allowances which had been made to the civilian dependents
of soldiers? If so, the bill against Germany could be raised to a
high enough figure to satisfy nearly every one. It was pointed out,
however, as Mr. Baruch records, “that financial loss resulting from the
absence of a wage–earner did not cause any more ‘damage to the civilian
population’ than did an equal financial loss involved in the payment
of taxes to provide military equipment and like war costs.” In fact,
a separation allowance or a pension was simply one of many general
charges on the Exchequer arising out of the costs of the war. If such
charges were to be admitted as civilian damage, it was a very short
step back to the claim for the entire costs of the war, on the ground
that these costs must fall on the taxpayer who, generally speaking, was
a civilian. The sophistry of the argument became exposed by pushing it
to its logical conclusion. Nor was it clear how pensions and allowances
could be covered by words which were themselves an interpretation of
the phrase, “restoration of invaded territory.” And the President’s
conscience, though very desirous by now to be converted (for he had on
hand other controversies with his colleagues which interested him more
than this one) remained unconvinced.
Public-domain text, read in full here on John Shaqi.
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