[1] But British policy can hardly be called less contradictory. A year after the enactment of a Treaty which quite avowedly was framed for the purpose of checking the development of German trade, we find the unemployment crisis producing on the part of the New Statesman the following comment:—
‘It must be admitted, however, that the present wave of depression and unemployment is far more an international than a national problem. The abolition of “casual labour” and the adoption of a system of “industrial maintenance” would appreciably affect it. The international aspect of the question has always been important, but never so overwhelmingly important as it is to-day.
‘The present great depression, however, is not normal. It is due in the main to the breakdown of credit and the demoralisation of the “exchanges” throughout Europe. France cannot buy locomotives in England if she has to pay 60 francs to the pound sterling. Germany, with an exchange of 260 (instead of the pre-war 20) marks to the pound, can buy scarcely anything. Russia, for other reasons cannot buy at all. And even neutral countries like Sweden and Denmark, which made much money out of the war and whose “exchanges” are fairly normal, are financially almost hors de combat, owing presumably to the ruin of Germany. There appears to be no remedy for this position save the economic rehabilitation of Central Europe.
‘As long as German workmen are unable to exercise their full productive capacity, English workmen will be unemployed. That, at present, is the root of the problem. For the last two years we, as an industrial nation, have been cutting off our nose to spite our face. In so far as we ruin Germany we are ruining ourselves; and in so far as we refuse to trade with revolutionary Russia we are increasing the likelihood of violent upheavals in Great Britain. Sooner or later we shall have to scrap every Treaty that has been signed and begin again the creation of the New Europe on the basis of universal co-operation and mutual aid. Where we have demanded indemnities we must offer loans.
‘A system of international credit—founded necessarily on British credit—is as great a necessity for ourselves as it is for Central Europe. We must finance our customers or lose them and share their ruin, sinking deeper every month into the morass of doles and relief works. That is the main lesson of the present crisis.’—(Jan. 1st, 1921.)
[2] Out of a population of 45,000,000 our home-grown wheat suffices for only about 12,500,000, on the basis of the 1919-20 crop. Sir Henry Rew, Food Supplies in Peace and War, says: ‘On the basis of our present population ... we should still need to import 78 per cent. of our requirements.’ (p. 165). Before the War, according to the same authority, home produce supplied 48 per cent. in food value of the total consumption, but the table on which this figure is based does not include sugar, tea, coffee, or cocoa.
[3] The growing power of the food-producing area and its determination to be independent as far as possible of the industrial centre, is a fact too often neglected in considering the revolutionary movements of Europe. The war of the classes almost everywhere is crossed by another war, that between cities and country. The land-owning countryman, whether peasant or noble, tends to become conservative, clerical, anti-socialist (and anti-social) in his politics and outlook.
[4] ‘The Economic Consequences of the Peace,’ pp. 275-277.
[5] Manchester Guardian, Weekly Edition, February 6th., 1920.
[6] Daily News, June 28th., 1920.