It should be borne in mind, on the other hand, that although Austria-Hungary, Bulgaria, and Turkey are financially encumbered in their quality of states, the exploitation of these countries by the Germans is very profitable. Their combined national fortunes were estimated, before the war, at about 269 billion francs. We must realize also that, although these loans granted by Berlin to her allies are merely paper loans, they bind Turkey, Bulgaria, and Austria-Hungary to Germany as closely as debtors can be bound to a creditor. None of these three countries can reasonably hope to get funds after the war from their present adversaries, who, it is certain, will have none too much money for their own needs; and so the financial situation as a whole combines with the enterprise shown by the Berlin General Staff to strengthen the grip which Germany has obtained over her allies through loans.
As this financial dependence of the three vassal states, with its tremendous consequences, is, as I have said, maintained simply by means of a printing-press and little slips of paper, which cost very little indeed; and since Germany receives in exchange for these slips of paper bearing her signature, men, food-stuffs, and supplies which, but for the action of the Allies, would enable her to establish Pan-Germany as mistress of Europe, we may safely say that the Pan-Germanist loans floated by Berlin at her allies’ expense constitute a powerful element of military advantage, which, if one but examines the conditions of its origin, must stand out as the most profitable and extraordinary swindle ever perpetrated.
III
The third element of German advantage: the value of a monopoly in exploiting the latent resources of the Balkans and Asia Minor
The figure of 269 billions of francs quoted above takes no account of the enormous agricultural and mineral wealth, as yet unexploited and unappraised, of the Balkans and the Ottoman Empire. Now, the business of tapping these vast reservoirs is entirely in the hands of the Germans, as a result of the Pan-Germanist loans.
IV
The fourth element of German advantage: the value resulting from the creation of an economic Pan-Germany
Economic Pan-Germany, as it was outlined by List, Roscher, Rodbertus, and other German economists, may be defined as follows: A territory uniting under one supreme central control Central Europe, the Balkans, and Turkey—a territory large enough to include military and economic resources entirely sufficient to provide for the needs of the population in times of war; and to assure its rulers in times of peace the domination of the world.
The seizure by Berlin of Austria-Hungary, Bulgaria, and Turkey—all essential elements of Central Pan-Germany—was accomplished in three ways: militarily, by the supremacy acquired by the German General Staff over the troops of the vassal states; financially, by means of the paper loans granted by Germany; and diplomatically, by the treaties signed in Berlin on January 11, 1917, establishing the strongest sort of German protectorate over the Ottoman Empire. This done, the consolidation of Pan-Germany was quickly undertaken by Berlin in a great number of ways.
Control of Customs.—As the establishment of the great Pan-German Zollverein (Customs Union) was not to be accomplished at one stroke, the Kaiser’s government set about preparing the necessary steps. Numerous conferences held at Berlin and attended by German, Austrian, and Hungarian statesmen and business men, resulted in the following essential provisions. (1) An economic customs agreement of long duration, which would make a single economic unit of Germany and Austria-Hungary; (2) to bring this about gradually, a progressive increase of duty—free articles, and a unification of the customs charges on certain goods; (3) a close economic union between Austro-Germany and Bulgaria and Turkey, to be arranged and established with the greatest possible expedition.