The new borders after 1918 are typically viewed as detrimental to the region's economic integration and development. In this book, Keynes reveal the unseen consequence of the treaty of Versailles on Germany since there is no regard for the economic side of the unsolved problem, followed eventually by a "remedy" or a strategy to stop the problem. Henig argues that “this clause, known as the ‘war-guilt’ clause, more than any other in the entire Treaty of Versailles, was to cause lasting resentment in Germany.” 25 The Treaty presented to the German delegates at Versailles was a harsh break from the promise of a treaty based on Wilson’s “Fourteen Points.” The Germans felt betrayed by the treaty presented to them and resented the manner in which the Allied Powers were treating them. Sally Marks in The Illusion of Peace states that the treatment of reparations by both sides was “the continuation of war by other means. The Russian Revolution and Civil War occurred right after World War I. In his The Economic Consequences of the Peace he attacked the effects of Versailles Settlement for its effects on Germany. (1920) The Peace of Versailles by J.M. Kitchen claims that according to Keynes, “a series of treaties which overlooked the really important issues of economic recovery, food, fuel, and finance would further exacerbate the situation.” 22 The fact of the matter is that Germany never felt as though they were defeated in World War I. Image: The Signing of Peace in the Hall of Mirrors, Versailles, 28th June 1919 © IWM (Art.IWM ART 2856) | Image Link. In addition, a demilitarized zone was created … Hobsbawm, Eric. The final telegraphed communication from the German National Assembly to the Allies in Versailles stated, “The government of the German Republic in no wise abandons its conviction that these conditions of peace represent injustice without example.” 21 The British economist John Maynard Keynes wrote in 1920 The Economic Consequences of the Peace in which he argues that the German economy would be destroyed by the post-war Versailles Treaty. Keynes at Versailles. Germans grew to resent the harsh conditions imposed by the Treaty of Versailles. Author, The Versailles Settlement: Peacemaking After the First World War, 1919-1923 and Versailles 1919: A Centennial Perspective) “John Maynard Keynes's The Economic Consequences of the Peace has long been the starting point for the historical debate about German reparations and the Treaty of Versailles. While France argued that she wanted the western German frontier to end at the Rhine for security reasons, British Prime Minister Lloyd George feared that this would most likely result in a future conflict between the two states. The Economic Consequences of the Peace made Keynes famous as an economist and was the source of the mainstream view after WWI that the Treaty of Versailles was a “Carthaginian Peace” unduly harsh towards Germany. Just six months after the treaty was signed John Maynard Keynes published “The Economic Consequences of the Peace… The Settlement of Inter-Ally Indebtedness, 4. 15 But there was the looming threat: “the Treaty of Versailles had left [Germany] largely intact, with a population almost double that of France, and with no powerful east European neighbours.” 16. As part of the British delegation to the Versailles Peace Conference after WW1 Keynes had detailed knowledge of the debates about reparations which were demanded of Germany. (1920) The Peace of Versailles by J.M. French Prime Minister Clemenceau commented on the day the armistice was signed on 11 November 1918, “We have won the war: now we have to win the peace, and it may be more difficult.” 6 The French politician Marshal Foch, as the Versailles Treaty was being signed, stated rather prophetically, “This is not peace; it is an armistice for 20 years.” 7. In 1920 Keynes produced an abbreviated version of The Economic Consequences of the Peace for the populist American 'Everybody's Magazine' entitled 'The Peace of Versailles'. Learn about the WW1 Treaty of Versailles, the settlement that sowed the seeds for an even greater war two decades later with BBC Bitesize KS3 History. They were naïve to assume that Germany would cooperate with the treaty terms by themselves. This text-based PDF or EBook was created from the HTML version of this book and is part of the Portable Library of Liberty. The treaty placed limits on the German military meant to reduce the possibility of further German aggression. Alsace-Lorraine was given to France and Eupen-Malmédy to Belgium. The German delegates viewed the economic sanctions as being far too harsh. However, these goals were recognized by all of the leaders as not easily achievable. It was doomed from the start, and another war was practically certain.” 8 The principle reasons for the failure of the Treaty of Versailles to establish a long-term peace include the following: 1) the Allies disagreed on how best to treat Germany; 2) Germany refused to accept the terms of reparations; and 3) Germany’s refusal to accept the “war-guilt” clause, Article 231, led to growing German resentment and nationalism. As Foch predicted, the Versailles Treaty was indeed only a 20 year armistice for the European powers. The Relations of Central Europe to Russia. 4-7, 29-45, 226-231.. The Economic Consequences of the Peace – John Keynes 2. This, therefore, was one of the parts of the treaty that Germany continually abused and disobeyed out of bitterness. Faced with the revolutionary atmosphere at home, and shortages from the conditions of war, the German government reluctantly agreed to accept the terms with two exceptions. Memelland was placed under French supervision, and Saarland was placed under the administration of the League of Nations, but France was given control of its coal. For decades afterward, his interpretation of Versailles was orthodoxy, despite substantive challenges to the book’s analysis. The Economic Consequences of the Peace, (New York: Harcourt, Brace, and Howe: 1920). It is estimated that approximately 5 million civilians died due to war-induced causes. Europe Between the Wars (London: Longman, 2000). The Versailles Peace Conference exposed the ideological rift growing between the Allies. Economic Consequences was all about turning public opinion against the Treaty of Versailles and Keynes understood the power of rhetoric. Revision after revision, therefore could not fix what was doomed to failure. And how was the damage assessed? The Treaty of Versailles was not signed by the United States Government. A.M. Luckau, The German Delegation at the Paris Peace Conference (New York: Columbia University Press, 1941), p. 112. While many historians would agree with this claim, there are also several who would dispute that this was not the case and would - as Sharp says the Germans felt – state that the Treaty was in fact completely unjust. The Economic Consequences of the Peace (New York: Harcourt, Brace and Howe, 1920). Catalogue Search for "subject:(Treaty of Versailles (1919))" The economic consequences of the peace. Keynes, Author of "The Economic Consequences of The Peace" in Everybody's Magazine, September, pp. Indeed, Foch was absolutely correct. Liberty Fund, Inc. All rights reserved. Instead the US Senate made a separate treaty with Germany in 1921. So while the British felt that the Treaty of Versailles was too harsh on Germany, France felt as though it were not harsh enough. The Treaty tried to stop Germany from harming others but, that didn't happen. What stopped the Treaty of Versailles from ever approaching success, however, was not the terms of the treaty, argues Henig, but rather the reluctance to enforce the terms by the Allies. France felt that Germany should “cover the costs of restoration of invaded territories and repayment of war debts [and that] a long period of stiff repayments … would have the added advantage of keeping Germany financially and economically weak.” 19 Britain, on the other hand, was concerned with the revival of international trade and knew that if Germany was heavily in debt with the Allied Powers, she would not be able to purchase British goods in sufficient quantities. Keynes, Author of "The Economic Consequences of The Peace" in Everybody's Magazine, September, pp. M. Kitchen, Europe Between the Wars (New York: Longman, 2000), p. 22. The Economic Consequences of the Peace (1919) was written by John Maynard Keynes. One of the major questions regarding the reparations was the following: should Germany be held accountable for what she owed to the Allies or should she be held accountable for what she could afford to pay? It’s fair to say that Keynes succeeded in realizing his goal. The Second World War, which broke out in 1939, was waged by Germany against the Allies to exact revenge and to finish what could not be completed by World War I. Mazower refers to World War II as “a bloody reopening of accounts by extreme nationalists wishing to revise the Versailles settlement by force.” 32 The Germans had always resented the terms and conditions of the treaty. 14 No one could possibly expect Germany to be disarmed forever. However, the unforgiving reparations that the Allies imposed on Germany in Article 232 of the treaty contributed to the collapse of the German economy. The US refused to ratify the first treaty. The Conference and the Terms of the Treaty, 2. It was this critical collapse, rather than the provisions of the peace terms themselves, which ensured that the Treaty of Versailles was never fully accepted or enforced. Dawson, William Harbutt. This chapter must be one of pessimism. This depression was the main cause of the treaty; however, in response to this, worse outcomes resulted. John Maynard Keynes (1883-1946) was an important English economist. His remarks were probably correct, but it is also probably that discomfort among the intellectual elite of the victor countries contributed to a lack of resistance when … The clause reads: The history of the article starts with President Woodrow Wilson’s Fourteen Points. The Age of Extremes: A History of the World, 1914 – 1991 (New York: Vintage Books, 1996). The Treaty ended the state of war between Germany and the Allied Powers.It was signed on 28 June 1919 in Versailles, exactly five years after the assassination of Archduke Franz Ferdinand, which had directly led to the war. Free kindle book and epub digitized and proofread by Project Gutenberg. M. Mazower, Dark Continent (New York: Vintage Books, 2000), p. 212. 36-41 (Available online) In 1921 André Tardieu , Clemenceau's lieutentant at the Peace Conference, published 'The Truth About the Treaty' which sought to justify the Treaty and counter the criticisms levelled at it by Keynes. Dark Continent: Europe’s Twentieth Century (New York: Vintage Books, 2000). On June 28, 1919, the Allied countries of World War I thought the storm of warfare had passed and ushered in a new era of everlasting peace, all because of one document- the Treaty of Versailles. Negotiations regarding the territorial claims also sparked heated debate among the Allies. The Treaty tried to stop Germany from harming others but, that didn't happen. 36-41 (Available online) Keynes is sympathetic with Germany and calls for the Allies to revise the Versailles Treaty to be less harsh on German’s economy. Other treaties ended the relationships of the United States and the other Central Powers. Never out of print, it has just been released in a new edition , benefitting greatly from a comprehensive introduction by Michael Cox of the London School of Economics. Rather than specific, the Treaty didn’t make much sense because it was wordy.