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
Thus the Treaty strikes at organization, and by the destruction of
organization impairs yet further the reduced wealth of the whole
community. The economic frontiers which are to be established between
the coal and the iron, upon which modern industrialism is founded, will
not only diminish the production of useful commodities, but may possibly
occupy an immense quantity of human labor in dragging iron or coal, as
the case may be, over many useless miles to satisfy the dictates of a
political treaty or because obstructions have been established to the
proper localization of industry.
III
There remain those Treaty provisions which relate to the transport and
the tariff systems of Germany. These parts of the Treaty have not nearly
the importance and the significance of those discussed hitherto. They
are pin-pricks, interferences and vexations, not so much objectionable
for their solid consequences, as dishonorable to the Allies in the light
of their professions. Let the reader consider what follows in the light
of the assurances already quoted, in reliance on which Germany laid down
her arms.
(i.) The miscellaneous Economic Clauses commence with a number of
provisions which would be in accordance with the spirit of the third of
the Fourteen Points,--if they were reciprocal. Both for imports and
exports, and as regards tariffs, regulations, and prohibitions, Germany
binds herself for five years to accord most-favored-nation treatment to
the Allied and Associated States.[55] But she is not entitled herself to
receive such treatment.
For five years Alsace-Lorraine shall be free to export into Germany,
without payment of customs duty, up to the average amount sent annually
into Germany from 1911 to 1913.[56] But there is no similar provision
for German exports into Alsace-Lorraine.
For three years Polish exports to Germany, and for five years
Luxemburg's exports to Germany, are to have a similar privilege,[57]--
but not German exports to Poland or to Luxemburg. Luxemburg also, which
for many years has enjoyed the benefits of inclusion within the German
Customs Union, is permanently excluded from it henceforward.[58]
Public-domain text, read in full here on John Shaqi.
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