The Economic Consequences of the Peace — John Shaqi
The Economic Consequences of the PeaceKeynes, John Maynard
History
The Economic Consequences of the Peace
Keynes, John Maynard
Economic history -- 1918-1945; Treaty of Versailles (1919 June 28); World War, 1914-1918 -- Economic aspects
The motives which will govern France's eventual policy are not entirely
concordant. While Lorraine comprised 75 per cent of Germany's iron-ore,
only 25 per cent of the blast furnaces lay within Lorraine and the Saar
basin together, a large proportion of the ore being carried into Germany
proper. Approximately the same proportion of Germany's iron and steel
foundries, namely 25 per cent, were situated in Alsace-Lorraine. For
the moment, therefore, the most economical and profitable course would
certainly be to export to Germany, as hitherto, a considerable part of
the output of the mines.
On the other hand, France, having recovered the deposits of Lorraine,
may be expected to aim at replacing as far as possible the industries,
which Germany had based on them, by industries situated within her own
frontiers. Much time must elapse before the plant and the skilled labor
could be developed within France, and even so she could hardly deal with
the ore unless she could rely on receiving the coal from Germany. The
uncertainty, too, as to the ultimate fate of the Saar will be disturbing
to the calculations of capitalists who contemplate the establishment of
new industries in France.
In fact, here, as elsewhere, political considerations cut disastrously
across economic. In a rÈgime of Free Trade and free economic intercourse
it would be of little consequence that iron lay on one side of a
political frontier, and labor, coal, and blast furnaces on the other.
But as it is, men have devised ways to impoverish themselves and one
another; and prefer collective animosities to individual happiness. It
seems certain, calculating on the present passions and impulses of
European capitalistic society, that the effective iron output of Europe
will be diminished by a new political frontier (which sentiment and
historic justice require), because nationalism and private interest are
thus allowed to impose a new economic frontier along the same lines.
These latter considerations are allowed, in the present governance of
Europe, to prevail over the intense need of the Continent for the most
sustained and efficient production to repair the destructions of war,
and to satisfy the insistence of labor for a larger reward.[54]
The same influences are likely to be seen, though on a lesser scale, in
the event of the transference of Upper Silesia to Poland. While Upper
Silesia contains but little iron, the presence of coal has led to the
establishment of numerous blast furnaces. What is to be the fate of
these? If Germany is cut off from her supplies of ore on the west, will
she export beyond her frontiers on the east any part of the little which
remains to her? The efficiency and output of the industry seem certain
to diminish.
Public-domain text, read in full here on John Shaqi.
Reviews
Reviews
No reviews yet
Be the first to share your thoughts on this work.
Join the Discussion
Join the discussion
Sign in to leave a comment or review.
Sign InorCreate an account