Chapter IX: Part 9

(a) Twenty milliards of francs to be considered as already paid in consideration of all that Germany has ceded in consequence of the treaties.

(b) Twenty milliards from the indemnity which Germany must pay to her conquerors, especially in coal and other materials, according to the proportions already established.

(c) Twenty milliards--after the payment of the debts in the second category to be taken over by Germany--as part of the reimbursement for countries which have made credits to the belligerents of the Entente: that is, the United States, Great Britain and France, in proportion to the sums lent.

In what material can Germany pay 20 milliards in a few years? Especially in coal and in material for repairing the devastated territories of France. Germany must pledge herself for ten years to consign to France a quantity of coal at least equal in bulk to the difference between the annual production before the War in the mines of the north and in the Pas de Calais and the production of the mines in the same area during the next ten years. She must also furnish Italy--who, after the heavy losses sustained, has not the possibility of effecting exchanges--a quantity of coal that will represent three-quarters of the figures settled upon in the Treaty of Versailles. We can compel Germany to give to the Allies for ten years, in extinction of their credits, at least 500 millions a year in gold, with privileges on the customs receipts.

This systematization, which can only be imposed by the free agreement of the United States and Great Britain, would have the effect of creating excellent relations. The United States, cancelling their, in great part, impossible debt, would derive the advantage of developing their trade and industry, and thus be able to guarantee credits for private individuals in Europe. It would also be of advantage to Great Britain, who would lose nothing. Great Britain has about an equal number of debits and credits, with this difference, that the debits are secured, while the credits are, in part, unsecured. France's credits are proportionately the worst and her debits largest, almost 27 milliards. France, liberated from her debt, and in a position to calculate on a coal situation comparable with that of before the War and with her new territories, would be in a position to re-establish herself. The cancellation of 27 milliards of debt, a proportionate share in 20 milliards, together with all that she has had, represent on the whole a sum that perhaps exceeds 50 milliards. Italy would have the advantage of possessing for ten years the minimum of coal necessary to her existence, and would be liberated from her foreign debt, which amounts to much more than she can possibly hope for from the indemnity.

Such an arrangement, or one like it, is the only way calculated to allow Europe to set out again on the path of civilization and to re-establish slowly that economic equilibrium which the War has destroyed with enormous damage for the conquerors and the certain ruin of the vanquished.

But, before speaking of any indemnity, the Reparations Commission must be abolished and its functions handed over to the League of Nations, while all the useless controls and other hateful vexations must be put an end to.

While the Allied troops' occupation of the Rhine costs Germany 25 milliards of paper marks a year, it is foolish to speak of reconstruction or indemnity. Either all occupation must cease or the expenses ought not to exceed, according to the foregoing agreements, a maximum of 80 millions at par, or even less.

We shall, however, never arrive at such an arrangement until the Continental countries become convinced of two things: first, that the United States will grant no credits under any formula; secondly, that Germany, under the present system, will be unable to pay anything and will collapse, dragging down to ruin her conquerors.

Among many uncertainties these two convictions become ever clearer.

If in all countries the spirit of insubordination among the working classes is increasing, the state of mind of the German operatives is quite remarkable. The workmen almost everywhere, in face of the enormous fortunes which the War has created and by reason of the spirit of violence working in them, have worked with bad spirit after the War because they have thought that a portion of their labour has gone to form the profits of the industrials. It is useless to say that we are dealing here with an absurd and dangerous conception, because the profit of the capitalist is a necessary element of production, and because production along communist lines, wherever it has been attempted, has brought ruin and misery. But it is useless to deny that such a situation exists, together with the state of mind which it implies. We can well imagine, then, the conditions in which Germany and the vanquished countries find themselves. The workmen, who in France, England and Italy exhibit in various degree and measure a state of intractability, in Germany have to face a situation still graver. When they work they know that a portion of their labour is destined to go to the victors, another part to the capitalist, and finally there will remain something for them. Add to this that in all the beaten countries hunger is widespread, with a consequent diminution of energy and work.

No reasonable person can explain how humanity can continue to believe in the perpetuation of a similar state of things for another forty years.

In speaking of the indemnity which Germany can pay, it is necessary to consider this special state of mind of the operatives and other categories of producers.

But the mere announcement of the settling of the indemnity, of the immediate admission of the vanquished nations into the League of Nations, of the settling the question of the occupation of the Rhine, and of the firm intention to modify the constitution of the League of Nations, according it the powers now held by the Reparations Commission, will improve at once the market and signalize a definite and assured revival.

The United States made a great financial effort to assist their associates, and in their own interests, as well as for those of Europe, they would have done badly to have continued with such assistance. When the means provided by America come to be employed to keep going the anarchy of central Europe, Rumania's disorder, Greece's adventures and Poland's violences, together with Denikin's and Wrangel's restoration attempts, it is better that all help should cease. In fact, Europe has begun to reason a little better than her governments since the financial difficulties have increased.

The fall of the mark and Germany's profound economic depression have already destroyed a great part of the illusions on the subject of the indemnity, and the figures with which for three years the public has been humbugged no longer convince anyone.

5.--FORMING NEW CONNEXIONS WITH RUSSIA

Among the States of the Entente there is always a fundamental discord on the subject of Russia. Great Britain recognized at once that if it were impossible to acknowledge the Soviet Government it was a mistake to encourage attempts at restoration. After the first moments of uncertainty Great Britain has insisted on temperate measures, and notwithstanding that during the War she made the largest loans to the Russian Government (more than 14 milliards of francs at par, while France only lent about 4 milliards), she has never put forward the idea that, as a condition precedent to the recognition of the Soviet Government, a guarantee of the repayment of the debt was necessary. Only France has had this mistaken idea, which she has forced to the point of asking for the sequestration of all gold sent abroad by the Soviet Government for the purchase of goods.

Wilson had already stated in his fourteen points what the attitude of the Entente towards Russia ought to be, but the attitudes actually assumed have been of quite a different order.

The barrier which Poland wants to construct between Germany and Russia is an absurdity which must be swept away at once. Having taken away Germany's colonies and her capacities for expansion abroad, we must now direct her towards Russia where alone she can find the outlet necessary for her enormous population and the debt she has to carry. The blockade of Russia, the barbed wire placed round Russia, have damaged Europe severely. This blockade has resolved itself into a blockade against the Allies. Before the present state of economic ruin Russia was the great reservoir of raw materials; she was the unexplored treasure towards which one went with the confidence of finding everything. Now, owing to her effort, she has fallen; but how large a part of her fall is as much due to the Entente as to her action during the War and since. For some time now even the most hidebound intelligences have recognized the fact that it is useless to talk of entering into trade relations with Russia without the co-operation of Germany, the obvious ally in the vast task of renovation. Similarly, it is useless to talk of reattempting military manoeuvres. While Germany remains disassociated from the work of reconstruction and feels herself menaced by a Poland that is anarchical and disorderly and acts as an agent of the Entente, while Germany has no security for her future and must work with doubt and with rancour, all attempts to reconstruct Russia will be vain. The simple and fundamental truth is just this: One can only get to Moscow by passing through Berlin.

If we do not wish conquerors and conquered to fall one after the other, and a common fate to reunite those who for too long have hated each other and continue to hate each other, a solemn word of peace must be pronounced.

Austria, Germany, Italy, France are not diverse phenomena; they are different phases of the same phenomenon. All Europe will go to pieces if new conditions of life are not found, and the economic equilibrium profoundly shaken by the War re-established.

I have sought in this book to point out in all sincerity the things that are in store for Europe; what perils menace her and in what way her regeneration lies. In my political career I have found many bitternesses; but the campaign waged against me has not disturbed me at all. I know that wisdom and life are indivisible, and I have no need to modify anything of what I have done, neither in my propaganda nor in my attempt at human regeneration, convinced as I am that I am serving both the cause of my country and the cause of civilization. Blame and praise do not disturb me, and the agitations promoted in the heart of my country will not modify in any way my conviction. On the contrary, they will only reinforce my will to follow in my own way.

Truth, be it only slowly, makes its way. Though now the clouds are blackest, they will shortly disappear. The crisis which menaces and disturbs Europe so profoundly has inoculated with alarm the most excited spirits; Europe is still in the phase of doubt, but after the cries of hate and fury, doubt signifies a great advance. From doubt the truth may come forth.

INDEX

ADRAIANOPLE, passes to the Greeks,
Adriatic programme, Italy's
Albania, an Italian expedition into
Alexander the Great as politician
Allenstein, a plebiscite for
Allies, the, war debts of
Alsace-Lorraine, annexation of
restitution of
America, and question of army of occupation
her attitude on reparations
result of her entry into the war
(_see also_ United States)
Apponyi, Count, on the Treaty of Trianon
Arabia, Turkey's losses in
Armaments, reduction of
the peace treaties and
Armenia, movement for liberation of
Armenian Republic, the
Armistice terms, summary of
three words change tenor of
Army of Occupation, the
Asia Minor, the Entente Powers and,
Turkey's losses in
Australasia, British possessions in
Australia as part of British dominions
Austria, financial position of,
loses access to the sea
Austria-Hungary, and the Versailles Treaty
civilizing influence of
pre-war army of
result of Treaty of St. Germain Germain-en-Laye
States of, before the war
victories of
Austrian army, the
Azerbajan

BALKANS, the, Russia's policy in
Battles, a military fact
difference between war and
Beethoven
Belgium, acquires German territory
army of
financial position of
population of
violation of, and the consequences
Bernhardi, General von
Bismarck, foresight of
political genius of
Bolshevik Government, the fiasco of
result of
Bolshevism, and what it is
Boxer rebellion, the Kaiser's address to his troops
Briand, M., on the objects of the Entente
Bridgeheads, German, occupation of,
British colonies, before the war,
Brussels, Conference of,
Budapest, conditions in,
mortality in,
Bulgaria, army of,
the Treaty of Neuilly and,
Bülow, von

CANADA as part of British dominions,
Cilicia,
Civilization, evolution of,
Clemenceau, M., and the military guarantees question,
and the Paris Conference,
and the reparations clause,
as destroyer,
communicates Poincaré's letter to Lloyd George,
fall of,
his hatred of the Germans,
on peace treaties,
replies to Lloyd George's note,
Coal fields, Germany's pre-war,
Colonial rights, and the Versailles Treaty,
Colonies, British,
German pre-war,
Germany loses her,
Commune, the French,
Communist system, Russian, failure of,
Constantine, King of Greece, return of,
Constantinople, retained by the Turks,
Russia's desire for,
subject to international control,
the Treaty of Sèvres and,
Croatia and Fiume,
Cyrenaica,
Czeko-Slovakia, State of,
added population of,
army of,
financial position of,
Magyars in

DALMATIA, the London Agreement and,
Dante, a celebrated dictum of,
Danube Commission, the,
Danzig, allotted to Poland,
Dardanelles, the, freedom of: Versailles Treaty and,
De Foville's estimate of wealth of France,
Denikin,
Denmark acquires North Schleswig,
Disarmament conditions fulfilled by Germany,
Disease, and the aftermath of war

ECONOMIC barriers, removal of, and the peace treaty,
England, and the Mediterranean,
war record of,
Entente, the, and Germany's responsibility for war,
and the Bolshevik Government,
author's opinion of peace terms of,
division among, as result of peace treaties,
Erzeroum, Mussulman population of,
Esthonia,
Eupen ceded to Belgium,
Europe, area of,
financial difficulties of,
increased armaments in

Europe, monarchies in, before the war
pre-war conditions of
reconstruction of, and peace policy
results of world-war in
States of
European civilization, future of
European States, war debts of
(_cf of_ War Debts)

FERENCZI, Dr., his statistics of sickness in Budapest
Fezzan
Fichte, and Germany
Financial and economic clauses of peace treaty
Finland
Fiume, Italy's position regarding
question of
the London Agreement and
Wilson and
Foch, Marshal, and the military commission
and the peace treaties
unconstitutional action of
France, acquires Saar mines
alliances with
and the indemnity
and the old regime in Russia
claims of, at Paris Conference,
expenses of her navy
financial position of
iron industry of
Italy and
population of
post-war army of
post-war condition of
presses for occupation of the Ruhr
pre-war status of
private wealth of, before the war
purport of her action in the Conference
recognizes government of Wrangel
safety of, and military guarantees
the political class in
treaties with U.S. and Great Britain
war record of
Franco-Prussian War, the
indemnity demanded by victors
unjust terms of Prussia
Frankfort, Treaty of, compared with Versailles Treaty
Frederick the Great, political genius of
Freedom of the seas, the peace treaties and
French-American Treaty, the
French-English Treaty, the
French territories, liberation
Frontiers, changed condition of

GEORGE, Lloyd, a memorandum for Peace Conference
a truism of
and question of military guarantees
and reparations question
and Russia
and the Paris Conference
and the proposed trial of the Kaiser
denounces economic manifesto
difficult position of, at Paris Conference
on Poland's claim to Upper Silesia
proposes Germany's admission to League of Nations
Georgia, in Bolshevik hands
Italy prepares a military expedition to
German army reduced by peace terms
delegates and the Paris Conference
German-Austria, army of
loses access to the sea
plight of
Germany, a country of surprises
a war of reconquest by, impossible
accepts armistice terms
Allies' demands for indemnities
and America's entry into the war
and her indemnity
and reconstruction of Russia
and the political sense
annual capitalization of
commerce of, before the war
cost of army of occupation to
effect of peace treaty on
effect of President Wilson's messages on
financial position of
her indemnity increased
her pre-war colonies
her responsibility for the war
how she can pay indemnity
imports and exports of
is she able to pay indemnity asked?
loses her colonies
losses of, in Great War
militarist party in
military conditions imposed on
population of, in and outside Europe
pre-war army of
pre-war coal supply of
pre-war conditions of
result of Versailles Treaty to
revolutionary crisis in
Sèvres Treaty and
suited for democratic principles
territories and States in, before the war
victories of
war record of
Goethe
Great Britain, and the indemnity
and the Treaty of Versailles
army of
enters the war
expenses of her navy
financial position of
general election in
insularity of
population of
pre-war conditions of
war record of
why she entered the war
Great War, the, author's opinion of peace terms
estimated number of dead in
how it was decided
post-war results of
question of responsibility for
Greece, acquires Bulgarian territory
army of
financial position of
her gains by Sèvres Treaty
her illusion of conquering Turkish resistance
her policy of greed
the Entente and

HEGEL, and Germany,
Helferich, and the capitalization of Germany,
Herf, von, and Polish organization,
Hindenburg, and the U.S. army,
House, Colonel, and the reduction of the German army,
and the reparations proposal,
Hughes, W.M., Premier of Australia, and the German indemnity,
Hungary, alarming mortality in,
army of,
conditions of life in,
delegates of, at Paris Conference,
harsh treatment of,
losses of, by peace treaty,
pre-war,
revolutions in, 166
Hunger and disease, a legacy of war,
Hymans, M., at Paris Conference,

INDEMNITIES, question of,
what Germany can pay,
(_see also_ Reparations)
Indemnity clause, how inserted,
_et seq_.,
India, British,
Inter-Allied debts, problem of,
_et seq_.
(_see also_ Allies, war debts of)
Iron, Germany's lack of,
Iron-ore, Germany's pre-war wealth in,
Italian frontier, rectification of,
Italian Socialists visit Russia,
Italians, their difficult theatre of war,
Italo-Turkish war, the,
Italy, a period of crisis in,
an expedition into Albania,
and Georgia,
and Montenegro,
and the Balkans,
and the League of Nations,
and the London Agreement,
and the Paris Conference,
army of,
breaks with the Alliance,
custom of tree-planting in,
declares her neutrality,
economic sufferings of,
enters the war,
expenses of her navy,
financial position of,
Great Britain and,
her costly Libyan adventure,
her freedom from revolutions,
in the Triple Alliance,
ministerial crisis in,
population of,
pre-war status of,
stands apart from Conference,
suffers from situation in Russia
territories annexed to,
the Adriatic problem,
the question of Fiume,
votes for recognition of the Soviet,
why she entered the war,

JAPAN, expenses of her navy,
Jews, Polish,
Judenic, General,
Jugo-Slavia, acquires Bulgarian territory,
army of,
financial position of,
Magyars in,
Julius Caesar as politician,
KANT, Emanuel
Kautsky, published documents of
Keynes, John Maynard, and inter-Allied debts
and the Paris Conference
author's admiration for
represents English Treasury at Paris Conference
the indemnity question and
true forecasts of
Klagenfurth, a plebiscite for
Klotz, and the indemnity
Koltchak, Admiral
Konigsberg, the home of Emanuel Kant
Kowno claimed by Poles

LABOUR and the war
Lansing, Robert, and the Paris Conference
Law, Bonar, and question of military guarantees
and reparations
and the indemnity
League of Nations, the, a suggested revision of treaties by
and Danzig
and the participation of the vanquished
as trustee of Saar mines
covenant of
foundation of, and its objects
Germany debarred from
its capabilities and mistakes
modification of two clauses of
its constitution needed
powers of
Wilson in a difficult situation
Lettonia
Libyan adventure, the
Lithuania, Wilna ceded to, but occupied by Poles
London Agreement, the
secrecy of
London, Conference of
discusses economic manifesto
Lorraine, Germany's pre-war iron production from
iron mines of: German ambitions for
Loucheur, M., and the indemnity
Ludendorff, General, important declaration by
Luxemburg, iron industry of

MAGYARS, in Rumania
Treaty of Trianon and,
Malmédy given to Belgium
Marienwerder, a plebiscite for
Marne, battle of the
Mesopotamia lost by Turkey
Military clauses and guarantees of peace treaty
Millerand, M., and Sweden
Monroe doctrine, the
Montenegro, absorbed by the S.H.S. State
restoration of
the Entente and
Moresnet becomes Belgian territory
Moscow Government sends gold to Sweden: French action
Mussulman population of pre-war Turkey

NAPOLEON I
as politician
his three great errors
Napoleon III
Nationalism, and what it implies
Naval armaments, the race for
Neuilly, the Treaty of
New Zealand, Britain's share of
Nicholas II, his proclamation regarding Poland
weakness of
Nineteenth century, the, wars of
Nitti, Francesco S., and admission of ex-enemies into League of
Nations
and Germany's responsibility for the war
and Italian Socialists
and Russia
and the Italian military expedition to Georgia
and the proposed trial of the Kaiser
at Conferences of London and San Remo
denounces economic manifesto
his son a prisoner of war
ideals of
opposes Adriatic adventure
receives deputation of German business men
signs ratification of Treaty of Versailles
the indemnity question and
Northcliffe Press, the, and the indemnity

OGIER, M., territorial reconstruction scheme of
Oliganthropy,
Orlando, M., and the reparations question
Orlando Ministry, the, resignation of
Ottoman Empire, the, a limited sovereignty to Turkish parts of

PALESTINE, Treaty of Sèvres and
Paper currency, Germany's pre-and post-war
Paris, an unsuitable meeting place for Conference
Peace Conference in
Supreme Council at
welcomes President Wilson
Paris Conference, and the indemnity
Peace, necessary conditions for
Peace Conference, Lloyd George's memorandum for
Peace treaties, a negation of justice
and continuation of the war
and their application
effect on Germany of
origin and aims of
question of reparation and indemnity
revision of, a necessity
their opposition to Wilson's fourteen points
Peace treaty of June, 1919, summary of terms of
Peasants, Russian, and the old regime
Petrograd, text of London Agreement published in
Plebiscite, result of, in Upper Silesia
Plebiscites, system of
Poincaré, M., and Clemenceau
and Germany's right of entry into League of Nations
and the peace treaties
Lloyd George replies to
on military guarantees and occupation
Poland, aims at further expansion
anarchic condition of
and the plebiscite
and the Treaty of Versailles
Poland, army of
financial position of
gains by Treaty
her policy of greed
obtains State of Danzig
of to-day
the Tsar's proclamation regarding
treaty with France
working for ruin
Polish state, foundation of an independent
Politics, German, pre-war
Portugal, war debt of
Progress, war as condition towards
Public debts of warring nations
(_cf_. Allies, war debts of)

RECONSTRUCTION of Europe, the, and annullment of inter-Allied debts
and the revision of peace treaties
Germany's indemnity and that of defeated countries
necessity of forming new connexions with Russia
the League of Nations and
the safety of France and the military guarantees
Renner, Chancellor of Vienna, confers with Marquis della Torretta
Reparations clause, origin of
Reparations Commission, the, expense accounts of
formation of
suppression of, a necessity
Reparations, the problem of
(_cf_. Indemnities)
Rhine, the, as frontier
occupation of
an act of vengeance
cost of, to Germany
Riga, hunger and sickness in, the aftermath of war
Ruhr, the, question of occupation of
Rumania, army of
evacuation of
financial position of
her gains by Treaty
Magyars in
Rumanian occupation of Hungary
Russia, and the League of Nations
as cause of world-conflict
birth-rate of
blockade of
Entente aids military undertakings in
financial position of
Germany's fear of
her policy of expansion
Lloyd George on
military revolts in
peace army of
policy of Entente towards
power of the Tsar in
present-day plight of
pre-war empire of
probable number of men under arms in
Sèvres Treaty and
the Versailles Treaty and
under the Tsars
Russian peasants and the old regime
Russians, remarkable fecundity of
Russo-Japanese peace, the and how drafted
Russo-Japanese War, the

SAAR, the, a plebiscite for
annexation of: French proposals regarding
coalfields of, assigned to France
pre-war production of
Saint-Germain-en-Laye, Treaty of
San Remo, Conference of
Schleswig, a plebiscite for,
Secret diplomacy, peace treaties and
Serbia, evacuation of
her gains by Treaty
ignorant of London Agreement
responsibility for the war
Russian policy in
the Allied Press and
war debt of
Serbo-Croat States, financial position of
sea-coast outlets for
S.H.S. State absorbs Montenegro
Silesia (_see_ Upper Selesia)
Slav States, cosmopolitan population of
Smyrna, the Sanjak of
Sonnino, M., at Paris Conference
South Africa, British
Soviet, the, recognition of, refused
Spa Conference, the
Starling, Professor
States, European, pre- and post-war, _et seq_.
Submarine menace, the
Sweden, Russian gold sent to
Syria

TARDIEU, André, and the guarantees against Germany
and the Paris Conference
and the question of military guarantees
draws up reply to Lloyd George
his report on Paris Conference
on President Wilson
on the Treaty of Versailles
Territorial and political clauses of peace treaty
Thrace assigned to Greece
Torretta, Marquis della, confers with Chancellor Renner
Trade conditions, equality of, and the peace treaty
Treaties, peace (_see Neuilly, Saint-Germain-en-Laye, Sèvres
Trianon, Versailles)
Treaties with France against German aggression
Treaty system, the, division of Europe by
Trianon, Treaty of
Triple Alliance, the
Italy and
"Triplice," the (_see_ Triple Alliance)
Tripoli, Italy
Tripolitania
Turkey, and the result of Treaty of Sèvres
army of
Grand Vizier of, and his note
Turks, their power of resistance
Turquan's estimate of wealth of France

United States, the, a deciding factor of the war
abandons Treaty of Versailles
and Armenian question
and the indemnity
United States, the, and the League of Nations,
and the naval question,
expenses of her navy,
financial position of,
losses in the Great War,
(see also America)
Upper Silesia, a plebiscite for,
iron industry of,
result of plebiscite in,

VENEZELOS, M., author's tribute to,
fall of,
Versailles, Treaty of,
abandoned by America,
and the future of Germany,
characteristic facts of,
conditions of Germany as result of,
injustice of,
Lloyd George on,
on what based,
ratification of,
summary of,
violation of,
why it has been weakened,
Vessitch, M., at Paris Conference,
Vienna, conditions in,
the wireless high-power station at,

WÄCHTER, Kinderlen-, and Russia,
War, a political fact,
as a necessary condition of life,
difference between battles and,
legitimacy of,
the aftermath of,
the nature of,
War debts, a menace to financial stability,
War debts of the Allies,
(_cf_. Inter-Allied debts)
Warfare, modern, what it means,
Wars of the last three centuries, the,
Wealth, influence of, on life and happiness,
William II, and his responsibility for the war,
as _miles gioriosus_,
author's aversion to,
frenzied oratory of,
proposed trial of,
Wilna ceded to Lithuania, but occupied by Poles,
Wilson, President, and Armenia
and Fiume,
and military guarantees,
and the League of Nations,
demonstrations against, in Italy,
his fourteen points,
compared with Treaty of Versailles,
his ignorance of European affairs, and the result,
how he was received in Paris,
memorable speech in American Senate,
peace ideals of, 34,
_post-bellum_ economic settlement proposals of (_see_ League of
Nations)
Wolff, and Germany,
Wrangel, General,

End of Project Gutenberg's Peaceless Europe, by Francesco Saverio Nitti