Chapter 13

As everyone knows, the plebiscite of March 20, 1921, in spite of the violence and notwithstanding the officially protected brigandage, resulted favourably to Germany. Out of 1,200,636 voters 717,122 were for Germany and 483,514 for Poland. The 664 richest, most prosperous and most populous communes gave a majority for the Germans, 597 communes gave a majority for Poland. The territory of Upper Silesia, according to the treaty, according to the plebiscite, according to the most elementary international honesty, should be immediately handed over to Germany. But as they do not wish to give the coal of Upper Silesia to Germany, and the big interests of the new great metallurgical group press and trick, the Treaty of Versailles has here also become a _chiffon de papier_.

Instead of accepting, as was the first duty, the result of the plebiscite, people have resorted to sophism of incomparable weakness: Article 88 of the Treaty of Versailles says only that the inhabitants of Upper Silesia shall be called to designate by means of a plebiscite if they desire to be united to Germany or to Poland.

It was necessary to find a sophism!

The Addendum of Section 8 establishes how the work of scrutiny shall be carried out and all the procedure of the elections. There are six articles of procedure. Paragraph 4 says that each one shall vote in the commune where he is domiciled or in that where he was born if he has not a domicile in the territory. The result of the vote shall be determined commune by commune, according to the majority of votes in each commune.

This means then that the results of the voting, as is done in political questions in all countries, should, be controlled commune by commune: it is the form of the scrutiny which the appendix defines. Instead, in order to take the coal away from Germany, it was attempted, and is being still attempted, not to apply the treaty, but to violate the principle of the indivisibility of the territory and to give the mining districts to Poland.

The violation of the neutrality of Belgium was not an offence to a treaty more serious than this attempt; the Treaty of 1839 cannot be considered a _chiffon de papier_ more than the Treaty of Versailles. Only the parties are inverted.

It is not France, noble and democratic, which inspires these movements, but a plutocratic situation which has taken the same positions, but on worse grounds, as the German metallurgists before the War. It is the same current against which Lloyd George has several times bitterly protested and for which he has had very bitter words which it is not necessary to recall. It is the same movement which has created agitations in Italy by means of its organs, and which attempt one thing only: to ruin the German industry and, having the control of the coal, to monopolize in Europe the iron industries and those which are derived from it.

First of all, in order to indemnify France for the _temporary_ damages done to the mines in the North, there was the cession _in perpetuo_ of the mines of the Saar; then there were the repeated attempts to occupy the territory of the Ruhr to control the coal; last of all there is the wish not to apply the plebiscite and to violate the Treaty of Versailles by not giving Upper Silesia to Germany, but giving it abusively to Poland.

Germany produced before the War about 190,000,000 tons of coal; in 1913 191,500,000. The consumption of these mines themselves was about a tenth, 19,000,000 tons, whilst for exportation were 83,500,000 tons, and for internal consumption were 139,000,000.

Now Germany has lost, and justly, Alsace-Lorraine, 3,800,000 tons. She has lost, and it was not just, the Saar, 13,200,000 tons. She is bound by the obligations of the treaty to furnish France with 20,000,000 tons, and to Belgium and Italy and France again another 25,000,000 tons. If she loses the excellent coal of Upper Silesia, about 43,800,000 tons per year, she will be completely paralysed.

It is needless to lose time in demonstrating for what geographic, ethnographic and economist reason Upper Silesia should be united with Germany. It is a useless procedure, and also, after the plebiscites, an insult to the reasoning powers. If the violation of treaties is not a right of the victor, after the plebiscite, in which, notwithstanding all the violences, three-quarters of the population voted for Germany, then there is no reason for discussion.

The words used by Lloyd George on May 18, 1921, in the House of Commons, are a courteous abbreviation of the truth. From the historical point of view, he said, Poland has no rights over Silesia. The only reason for which Poland could claim Upper Silesia is that it possesses a numerous Polish population, arrived there in comparatively recent times with the intention of finding work, and especially in the mines. That is true and is more serious than would be an agitation of the Italians in the State of San Paulo of Brazil, claiming that they had a majority of the population.

"The Polish insurrection," said Lloyd George justly, "is a challenge to the Treaty of Versailles, which, at the same time, constitutes the charter of Polish Liberty." Poland is the last country in Europe which has the right to deplore the treaty, because Poland did not conquer the treaty. Poland did not gain her liberty, and more than any other country should respect every comma of the treaty. She owes her liberty to Italy, Great Britain and France.

In the future [said the English Prime Minister] force will lose its efficiency in regard to the Treaty of Versailles, and the maintenance of the undertakings on the part of Germany on the basis of her signature placed to the treaty will count increasingly. We have the right to everything which she gives us: but we have the right also to leave everything which is left to her. It is our duty of impartiality to act with rigorous justice, without taking into account the advantages or the disadvantages which may accrue therefrom. Either the Allies must demand that the treaty shall be respected, or they should permit the Germans to make the Poles respect it. It is all very well to disarm Germany, but to desire that even the troops which she does possess should not participate in the re-establishment of order is a pure injustice.

Russia [added Lloyd George] to-day is a fallen Power, tired, a prey to a despotism which leaves no hope, but is also a country of great natural resources, inhabited by a people of courage, who at the beginning of the War gave proof of its courage. Russia will not always find herself in the position in which she is to-day. Who can say what she will become? In a short time she may become a powerful country, which can say its word about the future of Europe and the world. To which part will she turn? With whom will she unite?

There is nothing more just or more true than this.

But Poland wants to take away Upper Silesia from Germany notwithstanding the plebiscite and against the treaty, and which has in this action the aid of the metallurgical interests and the great interests of a large portion of the Press of all Europe. Poland, which has large nuclei of German populations, after having been enslaved, claims the right to enslave populations, which are more cultured, richer and more advanced. And besides the Germans it claims the right to enslave even Russian peoples and further to occupy entire Russian territories, and wishes to extend into Ukraine. There is then the political paradox of Wilna. This city, which belongs according to the regular treaty to Lithuania, has been occupied in an arbitrary manner by the Poles, who also claim Kowno.

In short, Poland, which obtained her unity by a miracle, is working in the most feverish manner to create her own ruin. She has no finance, she has no administration, she has no credit. She does not work, and yet consumes; she occupies new territories, and ruins the old ones. Of the 31,000,000 inhabitants, as we have seen, 7 millions are Ukranians, 2.2 Russians, 2.1 Germans, and nearly half a million of other nationalities. But among the eighteen or nineteen million Poles there are at least four million Jews--Polish Jews, without doubt, but the greater portion do not love Poland, which has not known how to assimilate them. The Treaty of Versailles has created the absurd position that to go from one part to the other of Germany it is necessary to traverse the Danzig corridor. In other terms, Germany is cut in two parts, and to move in Prussia herself from Berlin to one of the oldest German cities, the home of Emanuel Kant, Konigsberg, it is necessary to traverse Polish territory.

So Poland separates the two most numerous people of Europe: Russia and Germany. The Biblical legend lets us suppose that the waters of the Red Sea opened to let the Chosen People pass: but immediately afterwards the waters closed up again. Is it possible to suppose that such an arbitrary arrangement as this will last for long?

If it has lasted as long as it has, it is because it was, at least from the part of one section of the Entente, not the road to peace, but because it was a method of crushing down Germany.

If a people had conditions for developing rapidly it was Czeko-Slovakia. But also with the intention of hurting Germany and the German peoples, a Czeko-Slovak State was created which has also its own tremendous crisis of nationality. A Czeko-Slovakia with a population of eight to nine million people represented a compact ethnical unity. Instead, they have added five and a half million people of different nationalities, amongst whom about 4,000,000 Germans, with cities which are the most German in the world, as Pilsen, Karlsbad, Reichenberg, etc. What is even more serious is that the 4,000,000 Germans are attached to Germany, and, having a superior culture and civilization, will never resign themselves to being placed under the Czeks.

Czeko-Slovakia had mineral riches, industrial concerns and solid agriculture, and a culture spread among the people--all the conditions for rising rapidly. All these advantages risk being annulled by the grave and useless insult to the Germans and Magyars.

Not only is the situation of Europe in every way uncertain, but there is a tendency in the groups of the victors on the Continent of Europe to increase the military budgets. The relationships of trade are being restored only slowly; commerce is spoken of as an aim. In Italy the dangers and perils of reopening trade with Germany have been seriously discussed; customs duties are raised every day; the industrial groups find easy propaganda for protection. Any limitation of competition is a duty, whether it be the enemy of yesterday or the enemy of to-day, and so the greatest evils of protection are camouflaged under patriotism.

None of the countries which have come out of the War on the Continent have a financial position which helps toward a solid situation. All the financial documents of the various countries, which I have collected and studied with great care, contain enormous masses of expenses which are the consequences of the War; those of the conquering countries also contain enormous aggregations of expenses which are or can become the cause of new wars.

The conquered countries have not actually any finance. Germany has an increase of expenses which the fall of the mark renders more serious. In 1920 she spent not less than ninety-two milliards, ruining her circulation. How much has she spent in 1921?

Austria and Hungary have budgets which are simply hypotheses. The last Austrian budget, for 1921, assigned a sum of seventy-one milliards of crowns for expenses, and this for a poor country with 7,000,000 inhabitants.

A detailed examination of the financial situation of Czeko-Slovakia, of Rumania, and of the Serbo-Croat States gives results which are at the least alarming. Even Greece, which until yesterday had a solid structure, gallops now in a madness of expenditure which exceeds all her resources, and if she does not find a means to make peace with Turkey she will find her credit exhausted. The most ruinous of all is the situation of Poland, whose finance is certainly not better regulated than that of the Bolsheviks of Moscow, to judge from the course of the Polish mark and the Russian rouble if anyone gets the idea of buying them on an international market.

The situation of the exchange since the War has not sensibly bettered even for the great countries, and it is extraordinarily worse for the other countries.

In June, 1921, France had a circulation of about thirty-eight milliard of francs, Belgium six milliard of francs, Italy of about eighteen milliards; Great Britain, between State notes and Bank of England notes, had hardly £434,000,000 sterling. Actually, among the continental countries surviving the War, Italy is the country which has made the greatest efforts not to augment the circulation but to increase the duties; also because she had no illusions of rebuilding her finance and her national economy on an enemy indemnity.

But the conquered countries have so abused their circulation that they almost live on the thought of it--as, in fact, not a few of the conquering countries and those come out from the War do. Germany has passed eighty-eight milliards, and is rapidly approaching one hundred milliards. Now, when one thinks that the United States, after so many loans and after all the expenses of the War, has only a circulation of 4,557,000,000 dollars, one understands what difficulty Germany has to produce, to live, and to refurnish herself with raw materials.

Only Great Britain of all the countries in Europe which have issued from the War has had a courageous financial policy. Public opinion, instead of pushing Parliament to financial dissipation, has insisted on economy. If the situation created by the War has transformed also the English circulation into unconvertible paper money, this is merely a passing fact. If the sterling loses on the dollar--that is, on gold--given the fact that the United States of America alone now have a money at par, almost a quarter of its value, this is also merely a transitory fact.

Great Britain has the good sense to curtail expenses, and the sterling tends always to improve.

France and Italy are in an intermediate position. Their money can be saved, but it will require energetic care and great economies, stern finance, a greater development of production, limitation of consumption, above all, of what is purchased from abroad. At the date of which I am writing, expressed on a percentual basis, the French franc is worth 47 centimes of the sterling and 36 of the dollar--that is to say, of gold. The Italian lira is worth 28 centimes of the sterling and 21 of the dollar.

Here are still two countries in which tenacious energy can save and with many sacrifices they can arrive at good money. France has a good many more resources than Italy; she has a smaller need of importations and a greater facility for exportations. But her public debt has reached 265 milliards, the circulation has well passed thirty-eight milliards, and they still fear to calculate amongst the extraordinary income of the budget the fifteen milliards a year which should come from Germany.

Italy, with great difficulty of production and less concord inside the country, has a more true vision, and does not reckon any income which is not derived from her own resources. Her circulation does not pass eighteen milliards, and her debt exceeds by a little one hundred milliards.

With prudence and firmness France and Italy will be able to balance their accounts.

But the financial situation and the exchanges of the conquered countries, even that of Germany, may be called desperate.

If expressed in percentages, the German mark is worth 5.11 per cent. in comparison with the pound sterling and 3.98 per cent. of the dollar. What possibility is there of systematizing the exchange?

Germany was compelled this year to carry her expenses to 130 milliards of marks. As her circulation has exceeded eighty-eight milliards, how can she straighten out her money?

As for the Austrian and Hungarian crowns, the Jugo-Slav crowns, the Rumanian lei, and all the other depreciated moneys, their fate is not doubtful. As their value is always descending, and the gold equivalent becomes almost indeterminable, they will have a common fate. As for the Polish mark, it can be said that before long it will not be worth the paper on which it is printed.

There is, then, the fantastic position of the public debts! They have reached now such figures that no imagination could have forecasted. France alone has a debt which of itself exceeds by a great deal all the debts of all the European States previous to the War: 265 milliards of francs. And Germany, the conquered country, has in her turn a debt which exceeds 320 milliards of marks, and which is rapidly approaching 400 milliards. The debts of many countries are only recorded by feats of memory, because there is no practical interest in knowing whether Austria, Hungary, and especially Poland, has one debt or another, since the situation of the creditors is not a situation of reality.

The whole debt of the United States of America is, after so much war, only 23,982,000,000 dollars; but the United States are creditors of the Entente for 9,500,000,000 dollars. Also England, against a debt of £9,240,000,000 sterling, has a credit of £1,778,000,000.

These serious figures, whilst they increase the condition of discomfort rendered even more serious by the scarcity of commercial exchanges, indicate also what necessity may be superior to all in every country to preserve internal peace: produce more, consume less, put the finances in order, and reconquer the credits.

Instead, the conquered countries are going downwards every day and the conquering countries are maintaining very big armies, exhausting their resources, whilst they are spreading the conviction that the indemnity from the enemy will compensate sufficiently, or at least partially, for the work of restoration.

In fact, the causes of discontent and diffidence are augmenting. Nothing is more significant than the lack of conscience with which programmes of violence and of ruin are lightly accepted; nothing is more deplorable than the thoughtlessness with which the germs of new wars are cultivated. Germany has disarmed with a swiftness which has even astonished the military circles of the Entente; but the bitter results of the struggle are not only not finished against Germany, not even to-day does she form part of the League of Nations (which is rather a sign of a state of mind than an advantage), but the attitude towards her is even more hostile.

Two years after the end of the war R. Poincaré wrote that the League of Nations would lose its best possibility of lasting if, _un jour_, it did not reunite all the nations of Europe. But he added that of all the conquered nations--Austria, Hungary, Bulgaria, Turkey and Germany--the last-mentioned, by her conduct during the War and after the peace, justified least a near right of entry. It would be _incontestablement plus naturel_ (of how many things does nature occupy herself!) to let Austria enter first if she will disavow the policy of reattachment--that is, being purely German, renounce against the principle of nationality, in spite of the principle of auto-decision, when she cannot live alone, to unite herself to Germany; Bulgaria and Turkey as long as they had a loyal and courteous attitude towards Greece, Rumania and Serbia. The turn of Germany will come, but only after Turkey, when she will have given proof of executing the treaty, which no reasonable and honest person considers any more executable in its integrity.

The most characteristic facts of this peace which continues the War can be recapitulated as follows:

1. Europe on the whole has more men under arms than before the War. The conquered States are forced to disarm, but the conquering States have increased the armaments; the new States and the countries which have come through the War have increased their armaments.

2. Production is very tardily being taken up again because there is everywhere, if in a different degree, a lesser desire for work on the part of the working classes joined with a need for higher remuneration.

3. The difficulties of trade, instead of decreasing in many countries of Europe are increasing, and international commerce is very slowly recovering. Between the States of Europe there is not a real commerce which can compare with that under normal conditions. Considering actual values with values before the War, the products which now form the substance of trade between European countries do not represent even the half of that before the War.

As the desire for consumption, if not the capacity for consumption, has greatly increased, and the production is greatly decreased, all the States have increased their functions. So the discredit of the paper money and the Treasury bills which permit these heavy expenses is in all the countries of Europe, even if in different degrees, very great.

The conquering countries, from the moment that they had obtained in the treaties of peace the acknowledgment of the conquered that the War was caused by them, held it to be legitimate that they should lose all their disposable goods, their colonies, their ships, their credits and their commercial organization abroad, but that the conquered should also pay all the damages of the War. The War, therefore, should be paid for by the conquered, who recognized (even if against their will) that they were alone responsible. That forms henceforth a certain canon of foreign politics, the less a thing appears true the more it is repeated.

Although the treaties oblige Austria, Hungary, Bulgaria and Turkey to pay the damages of the War, it is, however, certain that they are not able to pay anything and not even the expenses of the victors on their territory. "_Cantabit vacuus coram latrone viator_," said Juvenal ("Who has nothing can give nothing"), and Austria, for her part, instead of giving is imploring food succour.

So the problem remains limited to Germany. Can she pay the indemnity indicated in the treaty? Can she pay for the damages and indemnify the victors? After having given up her colonies, her ships, her railway material, all her disposable credits abroad, in what form can she pay?

The fundamental controversy reduces itself henceforth only to this point, which we shall try if possible to make clear, since we desire that this matter shall be presented in the clearest and most evident form.

From now on it is not the chancelleries which must impose the solutions of great problems; but it is the mass of the public in Europe and America.

V

THE ANXIETIES OF THE VICTORS

We have seen the process by which the idea of the indemnity for damages, which was not contained either in the peace declaration of the Entente, nor in the manifestations of the various parliaments, nor in the first armistice proposals, nor in the armistice between Italy and Austria, was introduced in the armistice with Germany, out of pure regard for France, without taking heed of the consequences. Three words, said Clemenceau, only three words need be added, words which compromise nothing and are an act of deference to France. The entire construction of the treaties, after all, is based on those three words.

And how fantastic the demands for compensation have become!

An old Italian proverb says, "In time of war there are more lies than earth." Ancient and modern pottery reproduce the motto, which is widespread, and whose truth was not understood until some years ago. So many foolish things were said about the almost mysterious manoeuvres of Germany, about her vast expansion, her great resources and accumulated capital, that the reality tended to become lost to sight.