The Inside Story of the Peace Conference

by Emile Joseph Dillon

The world situation, thus formally modified, remained essentially unchanged, and will so endure until other forces are released. The League of Nations forfeited its ideal character under the pressure of national interests, and became a coalition of victors against the vanquished. By the insertion of the Covenant in the Treaty the former became a means for the execution of the latter. For even Mr. Wilson, faced with realities and called to practical counsel, affectionately dismissed the high-souled speculative projects in which he delighted during his hours of contemplation. Although the German delegates signed the Treaty, no one can honestly say that he expects them to observe it longer than constraint presses, however solemn the obligations imposed.

In the press organ of the most numerous and powerful political party in Germany one might read in an article on the Germans in Bohemia annexed by Czechoslovakia: "Assuredly their destiny will not be determined for all time by the Versailles peace of violence. It behooves the German nation to cherish its affection for its oppressed brethren, even though it be powerless to succor them immediately. What then can it do? Italy has given it a marvelous lesson in the policy of irredentism, which she pursued in respect of the Trentino and Trieste."[306]

With the Treaty as it stands, nationalist France of this generation has reason to be satisfied. One of its framers, himself a shrewd business man and politician, publicly set forth the grounds for this satisfaction.[307] Alsace and Lorraine reunited to the metropolis, he explained, will assist France materially with an industrious population and enormous resources in the shape of mineral wealth and a fruitful soil. Germany's former colonies, Kamerun and Togoland, are become French, and will doubtless offer a vast and attractive field for the expansion and prosperity of the French population. Morocco, freed from German enterprise, can henceforth be developed by the French population alone and without let or hindrance, for the benefit of the natives and in the true sense of Mr. Wilson's humanitarian ordinances. The potash deposits, to which German agriculture largely owed its prosperity, will henceforward be utilized in the service of French agriculture. "In iron ore the wealth of France is doubled, and her productive capacity as regards pig-iron and steel immensely increased. Her production of textiles is greater than before the war by about a third."[308] In a word, a vast area of the planet inhabited by various peoples will look to the French people for everything that makes their collective life worth living.

The sole arrangement which for a time caused heart-burnings in France was that respecting the sums of money which Germany should have been made to pay to her victorious enemies. For the opinions on that subject held by the average man, and connived at or approved by the authorities, were wholly fantastic, just as were some of the expectations of other Allied states. The French people differ from their neighbors in many respects—and in a marked way in money matters. They will sacrifice their lives rather than their substance. They will leave a national debt for their children and their children's children, instead of making a resolute effort to wipe it out or lessen it by amortization. In this respect the British, the Americans, and also the Germans differ from them. These peoples tax themselves freely, create sinking funds, and make heavy sacrifices to pay off their money obligations. This habit is ingrained. The contrary system is become second nature to the French, and one cannot change a nation's habits overnight. The education of the people might, however, have been undertaken during the war with considerable chances of satisfactory results. The government might have preached the necessity of relinquishing a percentage of the war gains to the state. It was done in Britain and Germany. The amount of money earned by individuals during the hostilities was enormous. A considerable percentage of it should have been requisitioned by the state, in view of the peace requirements and of the huge indebtedness which victory or defeat must inevitably bring in its train. But no Minister had the courage necessary to brave the multitude and risk his share of popularity or tolerance. And so things were allowed to slide. The people were assured that victory would recompense their efforts, not only by positive territorial gains, but by relieving them of their new financial obligations.

That was a sinister mistake. The truth is that the French nation, if defeated, would have paid any sum demanded. That was almost an axiom. It would and could have expected no ruth. But, victorious, it looked to the enemy for the means of refunding the cost of the war. The Finance Minister—M. Klotz—often declared to private individuals that if the Allies were victorious he would have all the new national debt wiped out by the enemy, and he assured the nation that milliards enough would be extracted from Germany to balance the credit and debit accounts of the Republic. And the people naturally believed its professional expert. Thus it became a dogma that the Teuton state was to provide all the cost of the war. In that illusion the nation lived and worked and spent money freely, nay, wasted it woefully.

And yet M. Klotz should have known better. For he was supplied with definite data to go upon. In October, 1918, the French government, in doubt about the full significance of that one of Mr. Wilson's Fourteen Points which dealt with reparations, asked officially for explanations, and received from Mr. Lansing the answer by telegraph that it involved the making good by the enemy of all losses inflicted directly and lawlessly upon civilians, but none other. That surely was a plain answer and a just principle. But, in accordance with the practice of secrecy in vogue among Allied European governments, the nation was not informed of these restrictive conditions, but was allowed to hug dangerous delusions.

But the Ministers knew them, and M. Klotz was a Minister. Not only, however, did he not reveal what he knew, but he behaved as though his information was of a directly contrary tenor, and he also stated that Germany must also refund the war indemnities of 1870, capitalized down to November, 1918, and he set down the sum at fifty milliards of francs. This procedure was not what reasonably might have been expected from the leader of a heroic nation stout-hearted enough to face unpleasant facts. Some of the leading spirits in the country, despite the intensity of their feelings toward Germany, disapproved this kind of bookkeeping, but M. Klotz did not relinquish his method of keeping accounts. He drew up a bill against the Teutons for one thousand and eighty-six milliards of francs.

The Germans at the Conference maintained that if the wealth of their nation were realized and liquid, it would amount at most to four hundred milliards, but that to realize it would involve the stripping of the population of everything—of its forests, its mines, its railways, its factories, its cattle, its houses, its furniture, and its ready money. They further pleaded that the territorial clauses of the Treaty deprived them of important resources, which would reduce their solvency to a greater degree than the Allies realized. These clauses dispossessed the nation of 21 per cent. of the total crops of cereals and potatoes. A further falling off in the quantities of food produced would result from the restrictions on the importation of raw materials for the manufacture of fertilizers. Of her coal, Germany was forfeiting about one-third; three-fourths of her iron ore was also being taken away from her; her total zinc production would be cut down by over three-fifths. Add to this the enormous shortage of tonnage, machinery, and man-power, the total loss of her colonies, the shrinkage of available raw stuffs, and the depreciation of the mark.

At the Conference the Americans maintained their ground. Invoking the principle laid down by Mr. Wilson and clearly formulated by Mr. Lansing, they insisted that reparations should be claimed only for damage done to civilians directly and lawlessly. After a good deal of fencing, rendered necessary by the pledges given by European statesmen to their electors, it was decided that the criteria provided by that principle should be applied. But even with that limitation the sums claimed were huge. It was alleged by the Germans that some of the demands were for amounts that exceeded the total national wealth of the country filing the claim. And as no formula could be devised that would satisfy all the claimants, it was resolved in principle that, although Germany should be obliged to make good only certain classes of losses, the Conference would set no limits to the sums for which she would thus be liable.

At this juncture M. Loucheur suggested that a minimum sum should be demanded of the enemy, leaving the details to be settled by a commission. And this was the solution which was finally adopted.[309] It was received with protests and lamentations, which, however, soon made place for self-congratulations, official and private.