28
labeled a traitor. The treaty drew criticism outside Germany as well.
The British economist John Maynard Keynes, who represented the
British Treasury at the peace talks, foresaw the damaging effects of
the emerging treaty and resigned in protest. In his 1919 book
The Eco-
nomic Consequences of the Peace,
Keynes declared, “If we aim at the im-
poverishment of Central Europe, vengeance, I dare say, will not limp.
Nothing can then delay for very long the forces of Reaction and the
despairing convulsions of Revolution, before which the horrors of the
later German war will fade into nothing, and which will destroy, who-
ever is victor, the civilization and the progress of our generation.”
14
The US Senate also rejected the treaty, although for much differ-
ent reasons. Senators deplored the fact that President Wilson had not
consulted them on the agreement, and most were skeptical about the
United States joining an international
group like the League of Nations.The Sen-
ate’s no vote basically spelled doom for the
league, which needed American backing
and membership to be effective. Although
the League of Nations did form in 1919, it
never became the agency for settling dis-
putes among major powers that Wilson
had envisioned. As Italian dictator Benito
Mussolini was to put it, “The league is very
well when sparrows shout, but no good at
all when eagles fall out.”
15
Germany’s economy spiraled down into
ruin during the 1920s. German businesses
faced crushing tariffs in other countries
that prevented them from selling their goods there and depressed the
economy. With unemployment growing, the Weimar Republic—the
democratic government that led Germany—tried to support workers
with more spending on transportation projects and social programs.
Added to these problems was the need to make stiff reparations pay-
ments as required in the Treaty of Versailles. This led the government
to print incredible amounts of money, causing a state of hyperinflation.
The German mark became almost worthless. Store shelves were often
empty. Cartoons of the time showed Germans pushing wheelbarrows
“If we aim at the
impoverishment
of Central Europe,
vengeance, I dare
say, will not limp.
Nothing can then
delay for very
long the forces
of Reaction and
the despairing
convulsions of
Revolution.”
14
—British economist John
Maynard Keynes.
