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
But this was impossible for two reasons. Two different kinds of false
statements had been widely promulgated, one as to Germany's capacity to
pay, the other as to the amount of the Allies' just claims in respect of
the devastated areas. The fixing of either of these figures presented a
dilemma. A figure for Germany's prospective capacity to pay, not too
much in excess of the estimates of most candid and well-informed
authorities, would have fallen hopelessly far short of popular
expectations both in England and in France. On the other hand, a
definitive figure for damage done which would not disastrously
disappoint the expectations which had been raised in France and Belgium
might have been incapable of substantiation under challenge,[105] and
open to damaging criticism on the part of the Germans, who were believed
to have been prudent enough to accumulate considerable evidence as to
the extent of their own misdoings.
By far the safest course for the politicians was, therefore, to mention
no figure at all; and from this necessity a great deal of the
complication of the Reparation Chapter essentially springs.
The reader may be interested, however, to have my estimate of the claim
which can in fact be substantiated under Annex I. of the Reparation
Chapter. In the first section of this chapter I have already guessed the
claims other than those for Pensions and Separation Allowances at
$15,000,000,000 (to take the extreme upper limit of my estimate). The
claim for Pensions and Separation Allowances under Annex I. is not to be
based on the _actual_ cost of these compensations to the Governments
concerned, but is to be a computed figure calculated on the basis of the
scales in force in France at the date of the Treaty's coming into
operation. This method avoids the invidious course of valuing an
American or a British life at a higher figure than a French or an
Italian. The French rate for Pensions and Allowances is at an
intermediate rate, not so high as the American or British, but above the
Italian, the Belgian, or the Serbian. The only data required for the
calculation are the actual French rates and the numbers of men mobilized
and of the casualties in each class of the various Allied Armies. None
of these figures are available in detail, but enough is known of the
general level of allowances, of the numbers involved, and of the
casualties suffered to allow of an estimate which may not be _very wide_
of the mark. My guess as to the amount to be added in respect of
Pensions and Allowances is as follows:
British Empire $ 7,000,000,000[106]
France 12,000,000,000[106]
Italy 2,500,000,000
Others (including United States) 3,500,000,000
---------------
Total $ 25,000,000,000
Public-domain text, read in full here on John Shaqi.
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