The Economic Consequences of the PeaceJohn Maynard Keynes, then a rising young economist, participated in the Paris Peace Conference in 1919 as chief representative of the British Treasury and advisor to Prime Minister David Lloyd George. He resigned after desperately trying and failing to reduce the huge demands for reparations being made on Germany. The Economic Consequences of the Peace is Keynes' brilliant and prophetic analysis of the effects that the peace treaty would have both on Germany and, even more fatefully, the world. |
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Allied and Associated Allied Governments allowed Alsace-Lorraine American amount Annex annual Armistice Article Associated Powers Austria Austria-Hungary bearer bonds Belgian Belgium believe Britain British Bulgaria capacity to pay capital ceded cent civilian claims clauses Clemenceau coal cost countries currency damage debt demand economic effect enemy estimate Europe European excess exchange exports figure force foreign Fourteen Points France French frontiers future German Government Germany Germany's capacity gold Hungary imports increase indemnity industrial interest investments Italy labor League of Nations less liability loans loss material ment millions nomic output Paris payment Peace Poland political population position possible pre-war present Treaty President Prime Minister production provisions reason Reichsbank Reparation Chapter Reparation Commission represented Rhine Russia Saar securities Serbia substantial supplies surplus surrender territory tion tons trade United Kingdom Upper Silesia wealth whole
Popular passages
Page 63 - mere phrase. It is an imperative principle of action which statesmen will henceforth ignore at their peril. . . . Every territorial settlement involved in this war must be made in the interest and for the benefit of the populations concerned, and not as a part of any mere adjustment or compromise of claims amongst rival States.
Page 51 - Pair is foul, and foul is fair, Hover through the fog and filthy air. The subtlest sophisters and most hypocritical draftsmen were set to work, and produced many ingenious exercises which might have deceived for more than an hour a cleverer man than the President. Thus instead of saying that German-Austria is
Page 148 - Germany accepts the responsibility of Germany and her allies for causing all the loss and damage to which the Allied and Associated Governments and their nationals have been subjected as a consequence of the war imposed upon them by the aggression of Germany and her allies.
Page 62 - the wrong done to France by Prussia in 1871 in the matter of AlsaceLorraine." (13). An independent Poland, including "the territories inhabited by indisputably Polish populations" and "assured a free and secure access to the sea.
Page 60 - free. The Allied Governments feel that no doubt ought to be allowed to exist as to what this provision implies. By it they understand that compensation will be made by Germany for all damage done to the civilian population of the Allies and to their property by the aggression of Germany by land, by sea, and from the air.
Page 72 - reserve the right to retain and liquidate all property, rights and interests belonging at the date of the coming into force of the present Treaty to German nationals, or companies controlled by them, within their territories, colonies, possessions and protectorates, including territories ceded to them by the present Treaty.
Page 148 - The Allied and Associated Governments recognize that the resources of Germany are not adequate, after taking into account permanent diminutions of such resources which will result from other provisions of the present Treaty, to make complete reparation for all such loss and damage." The President could comfort himself that this was no
Page 158 - such supplies of food and raw materials as may be judged by the Governments of the Principal Allied and Associated Powers to be essential to enable Germany to meet her obligations for Reparation may also, with the approval of the said Governments, be paid for out of the above sum.'
Page 76 - operating in Russia, China, Turkey, Austria, Hungary, and Bulgaria, or in the possessions or dependencies of these States, or in any territory formerly belonging to Germany or her allies, to be ceded by Germany or her allies to any Power or to be administered by a Mandatory under the present Treaty.'
Page 80 - In territory outside her European frontiers as fixed by the present Treaty, Germany renounces all rights, titles and privileges whatever in or over territory which belonged to her or to her allies, and all rights, titles and privileges whatever their origin which she held as against the Allied and Associated Powers