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Not Conquest, but a New Economical System of Europe

By Gustaf Sioesteen

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The subjoined letter from Berlin, published originally in the Swedish Goteborgs HandelsTidnung of Oct. 26, 1914, was immediately translated by the British Legation in Stockholmthis is the official English translation-and sent by the legation to Sir Edward Grey. THE NEW YORK TIMES CURRENT HISTORY is informed from a trustworthy source that the article is interpreted in London as expressing the real aims of Germany at the end of the war, should that power be successful. The founding of a commercial United States of Europe by means of an economical organization with new "buffer" States to be created between the German Empire and Russia, and with the other smaller European States, would be, according to this interpretation, the purpose of Germany at the conclusion of a victorious war. The passage in the Berlin correspondent's letter declaring that only such an enormous central European customs union, in the opinion of leading German statesmen, "could hold the United States of North America at bay " in order that, after this present war, the "world would only have to take into account two first-class powers, viz., Germany and the United States of America," is of peculiar interest to Americans.

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These illusions are not only egotistical but, curiously enough, altruistic, since mankind, even when bayoneting their fellow-creatures, want to persuade themselves and others that this is done merely for the benefit of their adversary. In accordance with this idea, in the opinion of all parties, the war will be brought to an end with an increase of power for their native country, as also a new Eden prevail throughout the whole civilized world.

The enemies of Germany, though they have hitherto suffered an almost unbroken series of reverses in the war, have already thoroughly thrashed out the subject as to what the world will look like when Germany is conquered. In German quarters the press has likewise painted the future, but the follow

ing lines are not intended to increase the row of fancy portraits, but merely to throw light on what is new in the demands conceived.

My representations are founded on special information, and I deem it best to make them now, when the most fantastic descriptions of the all-absorbing desire of conquest on the part of Germany have circulated in the press of the entire world.

Among other absurdities it has been declared that Germany intends to claim a fourth of France, making this dismembered country a vassal State, bound to the triumphal car of the conqueror by the very heaviest chains. It is incredible, but true, that such a statement has been made in the press by a Frenchman, formerly President of the Council. In direct opposition to the fictitious demands of the Germans, I can advance a proposition which may sound paradoxical, viz., that the leading men in Germany, the Emperor and his advisers, after bringing the war to a victorious issue, will seriously seek expedients to avoid conquests, so far as this is compatible with the indispensable demands of order and stability for Europe.

First, as regards France. The entire world, as also the Germans, are moved to pity by her fate. Germany has never

entertained any other wish than to be at peace with her western frontier. A considerable portion of France is now laid waste, and in a few weeks millions of soldiers will have been poured into still wider portions of this beautiful country. On what are the inhabitants of these French provinces to exist when the German and French armies have requisitioned everything eatable? Germany cannot feed the inhabitants of the French provinces occupied, nor can the Belgians do so, I imagine, for the provisions of Germany are simply sufficient for their own needs, England preventing any new supply on any large scale.

This is a totally new state of things in comparison with 1870, when Germany was still an agrarian country and had, moreover, a free supply on all her frontiers.

Can the French Government allow a considerable portion of their own population actually to starve, or be obliged to emigrate to other parts of France, there to live the life of nomads at the expense of England, while the deserted provinces are given over to desolation?

The idea prevails here that the French will compel their Government to enter on and conclude a separate treaty of peace when the fatal consequences of the war begin to assume this awful guise. England does not appear to have considered that this would be the result of her system of blockade.

The German conditions of peace as regards France will be governed by two principal factors with respect to their chief issues.

The first is the complete unanimity of the Emperor and the Chancellor that no population, not speaking German, will be incorporated in the German Empire, or obtain representation in the Diet. Germany already has sufficient trouble with the foreign element now present in the Diet. Consequently there can be no question of any considerable acquisition of territory from France, but the demands of Germany simply extend to the iron-ore fields of Lorraine, which are certainly of considerable value. For France these mining fields

are of far less consideration than for Germany, whose immense iron trade is far more in need of the iron mines.

The second factor is that the Germans, owing to the strong public opinion, will never consent to Belgium regaining her liberty. The Chancellor of the Empire has, as long as it was possible, been opposed to the annexation of Belgium, having preferred, even during hostilities, to have re-established the Belgian Kingdom. It is significant that the military authorities have prohibited the German press from discussing the question of the future of Belgium. It is evident that there has prevailed a wish to leave the question open in order to insure a solution offering various possibilities. But subsequent to the discovery of the Anglo-Belgian plot, as previously stated, all idea of reinstating Belgium has been discarded.

The annexation of Belgium, however, makes it possible to grant France less stringent conditions. So long as Belgium-under some form of self-government is under German sway there is no hope of revenge of France, and the conviction prevails here that after this

war

France will abstain from her dreams of aggrandizement and become pacific. Germany can then make reductions in the burdens laid on her people for military service by land.

To arrange the position of Belgium in relation to Germany will be a very interesting problem for German policy.

It is obvious that the annexation of Belgium cannot be defended from the point of view of the principle of nationality. The Belgians-half of them French, half of them Flemish-undoubtedly deem themselves but one nation. As a mitigating circumstance in favor of the annexation it is urged-above and beyond the intrigues carried on by Belgium with the English-that Belgium, in days of yore, for a long time formed a portion of the German Empire, and that the inhabitants of the little country, to a considerable degree, gain their livelihood by its being a land of transit for German products. Nationally, the annexation is not to be defended, but

geographically, economically, and from a military point of view it is comprehensible.

At the east front of the central powers very different conditions prevail. Austria has no desire to make the conquest of any territory; indeed, just the contrary, would probably be willing to cede a portion of Galicia in favor of new States. Germany has not the slightest inclination to incorporate new portions of Slav or Lettish regions. Germans and Austrians wish to establish free buffer States between themselves and the great Russian Empire.

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Not even the Baltic provinces, where Germans hold almost the same position as the Sw des in Finland, form an object for the German desire of conquest, but her wish is to make them, as also Finland, an independent State. Furthermore, the Kingdom of Poland and a Kingdom of Ukraine would be the outcome of decisive victories for the central powers.

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What Germany would demand of these new States, whose very existence was the outcome of her success at arms, would simply be an economical organization in common with the German Empire, an enormous central European Zollverein ("Customs Union ") with Germany at its heart. It is only such a union, in the opinion of leading German statesmen, which could hold the United States of North America at bay, and after this present war, moreover, the world would only have to take into account two first-class powers, viz., Germany and the United States of America.

A commencement of this new economical connection is being made by the negotiations entered on by representatives of Austria-Hungary and Germany concerning the proposed formation of a Customs Union. include 120,000,000 individuals, it must be evident what an immense attraction it must exert on the surrounding smaller nations. Switzerland and Holland can scarcely escape this attraction, and the Scandinavian countries, it is said, would probably find it to their advantage, to

Since this union would

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This "Zollverein" would then include about 175,000,000 individuals. The adhesion of Italy to the vast union would not be inconceivable, and then the combination of the United States of Europe, founded on a voluntary commercial union, would be approaching its realization.

Such a commercial union, embracing various peoples, could only lead to moderation in foreign politics, and would be the best guarantee for the peace of the universe. A brisk interchange of commodities, a fruitful interchange of cultural ideas would result from such a union, connecting the polar seas with the Mediterranean, and the Netherlands with the Steppes of Southern Russia.

All States participating in this union would gain thereby. But one European country would be the loser, Great Britain, the land of promise for the middleman; that, according to German comprehension, at present gains a living by skimming the cream from the trade industry of other nations by facilitating the exchange of goods, and making profits by being the banking centre of the world.

The Germans declare that there is no reason for such a middleman's existence in our day. The banking system is now so developed in all civilized lands that, for example Sweden can remit direct to Australia or the Argentine for goods obtained thence, instead of making payment via London and there rate, by raising the exchange for sovereigns to an unnatural height, so that, as matter of fact, England levies a tax on all international interchange of commodities.

In opposition to this glorious vision of the days to come, which the Germans wish to realize by their victories in war, there is the alluring prospect of the Allies that by their victory they will deal a deathblow to German militarism. While the English, with their 200,000 troops, are good enough to promise no

conquest of German territory-what says Russia to this?-at the close of the war, in the opinion of the Britons, there would still remain 65,000,000 Germans right in the centre of Europe, organized as a kingdom burdened with a war indemnity to a couple of tens of milliards in marks.

This nation, however, strengthened by 15,000,000 Germans in Austria, would be the greatest bearers of culture in the wide world-the nation with the best technical equipment of all others, glowing with ambition, with military training second to none, and gifted with an immense rate of increase as regards population. This nation would be forced to lay down her arms, lying as it does between the overbearing gigantic realm in the east and the warlike French to

the west. The idea is incomprehensible. The universe would behold a competition in armaments such as it had never seen.

A victorious Germany, on the other hand, would become less and less military, since she would not need to arm herself to such an extent as now. She is already chiefly an industrial country. Her desire is to be wealthy, and wealth invariably smothers military instincts. Germany has set up far greater ideals as regards social developments than other countries, and all she asks is to be left in peace calmly to carry out these plans in the future. German militarism can only be conquered by the victory being on her side, since she has no thought of military supremacy, but simply of founding a new economical organization in Europe. GUSTAF SIOESTEEN.

ADDRESS TO KING ALBERT OF BELGIUM
By EMIL VERHAEREN.

Translation by Florence Simmonds.

[From King Albert's Book.]

Sire: This request to pay my respectful homage to you has given me the first real pleasure I have been permitted to feel since the good days of Liége. At this moment you are the one King in the world whose subjects, without exception, unite in loving and admiring him with all the strength of their souls. This unique fate is yours, Sire. No leader of men on earth has had it in the same degree as you.

In spite of the immensity of the sorrow surrounding you, I think you have a right to rejoice, and the more so as your consort, her Majesty the Queen, shares this rare privilege with you.

Sire, your name will be great throughout the ages to come. You are in
such perfect sympathy with your people that you will always be their symbol.
Their courage, their tenacity, their stifled grief, their pride, their future
greatness, their immortality all live in you. Our hearts are yours to
their very depths. Being yourself, you are all of us. And this you will
remain.

Later on, when you return to your recaptured and glorious Belgium,
you will only have to say the word, Sire, and all disputes will lose their
bitterness and all antagonisms fade away. After being our strength and
defender, you will become our peacemaker and reconciler. With deepest
respect,
EMIL VERHAEREN.

of War

Financing the Allies and Small Nations Preparing for War

By Lloyd George, British Chancellor of the Exchequer

That there are "also other States preparing for war," and that financial arrangements had been made for their participation against Germany by the allied Governments of Great Britain, France, and Russia; moreover, that Russia would be enabled within a few months to export considerable quantities of her grain and do her own financing-this statement preceded the bombardment of the forts in the Dardanelles, probably to clear the way for Russia's commerce-are the outstanding features of the speech by Lloyd George presented below, foreshadowing a new phase in the war. The speech was made in the House of Commons on Feb. 15, 1915, to explain the results of the financial conference between the allied powers to unite their monetary resources, held in Paris during the week of Feb. 1. It may be regarded as one of the most momentous utterances of the war.

PARLIAMENTARY REPORT.

The Chancellor of the Exchequer, (Mr. Lloyd George,) who was called upon by the Speaker, said: I shall do my best to conform to the announcement of the Prime Minister that the statement I have to make about the financial conference in Paris shall be a brief one, but I am afraid my right honorable friend assumed that we are all endowed with the extraordinary gift of compression which he himself possesses. [Laughter.] The arrangements that were made between the three Ministers for recommendation to their respective Governments commit us to heavy engagements, and it is, therefore, important I should report them in detail to the House, and find some reason why we should undertake such liabilities.

This is the most expensive war which has ever been waged in material, in men, and in money. The conference in Paris was mostly concerned with money. For the year ending Dec. 31 next the aggregate expenditure of the Allies will not be far short of £2,000,000,000. The British Empire will be spending considerably more than either of our two great allies-probably up to £100,000,000 to £150,000,000 more than the highest figure to be spent by the other two great allies. We have created a new army; we have to maintain a huge navy. We are

paying liberal separation allowances. We have to bring troops from the ends of the earth; we have to wage war not merely in Europe, but in Asia, in North, East, and South Africa. I must say just a few words as to the relative position of the three great countries which led us to make the arrangements on financial matters which we recommend to our respective Governments. Britain and France are two of the richest countries in the world. In fact, they are the great bankers of the world. We could pay for our huge expenditure on the war for five years, allowing a substantial sum for depreciation, out of the proceeds of our investments abroad. France could carry on the war for two or three years at least out of the proceeds of her investments abroad, and both countries would still have something to spare to advance to their allies. This is a most important consideration, for at the present moment the Allies are fighting the whole of the mobilized strength of Germany, with perhaps less than one-third of their own strength. The problem of the war to the Allies is to bring the remaining twothirds of their resources and strength into the fighting line at the earliest possible moment. This is largely, though by no means entirely, a question of finance.

Russia is in a different position from

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