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nydus/The Economic Consequences of the PeacePublic

John Maynard Keynes, a former British Treasury representative at the Paris Peace Conference, outlines his objections to the economic policies established by the Treaty of Versailles. He argues that the terms of the peace agreement threaten the stability of the European economic organization and risk further damaging a system already weakened by war.

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Table of Contents

The Treaty

tons.

These figures have to be examined in relation to Germany's probable output. The maximum pre-war figure was reached in 1913 with a total of 191,500,000 tons. Of this, 19,000,000 tons were consumed at the mines, and on balance (i.e. exports less imports) 33,500,000 tons were exported, leaving 139,000,000 tons for domestic consumption. It is estimated that this total was employed as follows:—

Railways18,000,000tons.
Gas, water, and electricity12,500,000"
Bunkers6,500,000"
House-fuel, small industry and agriculture24,000,000"
Industry78,000,000"
139,000,000"
The diminution of production due to loss of territory is:—
Alsace-Lorraine3,800,000tons.
Saar Basin13,200,000"
Upper Silesia43,800,000"
60,800,000"
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