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A Revision of the Treaty being a Sequel to The Economic Consequences of the Peace

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John Maynard Keynes (1883-1946)wrote REVISION OF THE TREATY in 1922 as a response to the critics of his book THE ECONOMIC CONSEQUENCES OF PEACE. Keynes effectively refuted his critics whose arguements were so weak that they had to resort to ad hominem arguement. Keynes simply amplified his earlier book and vindicated his THE ECONOMIC CONSEQUENCES OF PEACE. Keynes was clear that REVISION OF THE TREATY is a sequel to the earlier book.

Keynes reviewed the circumstances of World War I and briefly gave readers a precise of the problems that the Versailles Treaty imposed not only on the defeated Germans but also the "allies." Keynes had three years to observe events further research the economic conditions in Europe. Keynes also took advantage of the extension of claims against the Germans and gave his readers a current assessment (current in 1922)of the exaggerations of "allied" claims imposed on the Germans especially those of the French.

An example of Keynes careful observations was the revised situation of coal markets before and after World War. Keynes comments that demands on Germans to pay part of their reparations in coal at first caused a coal shortage and then a glut of coal on Euroepean markets especially in Western Europe.

Another problem that Keynes warned of was the distortions in international currency exchanges which were quite volitle after World War I. Keynes chided the French for their lying about their status in international currency. Readers must remember that world currencies were based on the gold standard unlike today. Keynes warned that the dislocations and impossible conditions imposed on the Germans could radically alter if not ruin currency exchanges. Note that the U.S. and Europeans went off the gold standard as Keynes implied they would.

Keynes treatment of conditions in Central Europe and the Soviet Union worth noting. While the Western Europeans were supposedly improving their economic conditions by 1922, conditions in Russia and Eastern Europe were severe. Keynes rightly attributed these conditions to artificial creation of make-shift regimes in Eastern Europe. For example there was no Poland from 1796 until 1919. The make-shift regimes of Poland, Czechoslovakia, Yugoslavia, etc. did not exist prior to 1919. The government leaders imposed tarrifs, customs houses, etc. which were trade barriers whereby these areas were basically free trade zones when part of the Hapsburgh Empire. Such state creation showed the short sightedness of the Versailles diplomats and their refusal to forsee tragic unforseen circumstances.

Keynes examines the insane conditions imposed on the Germans. The Germans lost their merchant marine, their colonies, some of their coal regions, and some of their industrial regions. Yet, the "allies" expected starving Germans who lost means of prosperity and production were expected to pay reparations which were impossible. These conditons not only harmed the Germans, but these conditions eventually helped undermine European prosperity as well.

Keynes may have written this book as a hasty response to critics whom he answered very well. However, he should have been more clear in converting German currency to British pounds and U.S. dollars to give British and American readers a clearer picture of the amounts of money involved. Keynes does mention that the British pound was worth $4.00, but he should have compared U.S. currency to French and German currency.

Keynes should have briefly mentioned the pre-war (pre World War I) diplomacy and military events just prior and during World War I. For example, Belgium authorties were negotiating with British and French diplomats in 1913 to land French and British troops on Belgium soil to invade Germany in event of war with the Germans. The Germans knew this, and once the Belgium authorities engaged in these proceeding, they were no longe neutral. Keynes should have mentioned that the huge Russian moblization on the German border in 1914 was an act of war. International law provided that in event of a genral mobilization on a neighbor's border, the neighbor had a right to declare war to defend themselves. Readers should note that the French and British declared war on the Germans first raising the question of who actually started this war.

Keynes made the remark that some political "experts" stated that because the conditions of Versailles Treaty were impossible, they were harmless. Keynes was clear that these impossible conditions made the Versailles Treaty harmful to both the "winners" and losers. Readers should give this book the attention it deserves. Readers should also read THE ECONOMIC CONSEQUENCES OF PEACE first to have a better understanding of REVISION OF THE TREATY.

Keynes' second book on the treaty. A defense of his original book and a chance to rebut critics of the original volume.