Monday, September 26, 2011

Exploiting the Occupied

Richard Schüller was a colleague of Mises and a high-ranking economic adviser in the Austrian government during the First World War. Along with Gustav Gratz, he co-authored an account of Austria-Hungary's wartime trade policy. This neglected work, The Economic Policy of Austria-Hungary During the War In Its External Relations, is an excellent case study in how individual state actors and interest groups construct empires. Speaking of the Treaty of Brest-Litovsk, the Treaty of Versailles, and the Treaty of Saint-Germain-en-Laye, Schüller and Gratz explain:
Such a common trait is the endeavor of the victors to use the vanquished countries for the reinforcement of their own economic power. This trait was for centuries familiar, as that which underlay the mercantile wars. It now appears as imperialism, and uses a new, modern technique. Thus, for example, in all the peace treaties of the World War the victors try to secure control of the raw materials of the vanquished countries for as long a time as possible. They demand their delivery under favorable conditions, in one case on credit, in others without even payment, i.e., as a burden on the budget of the vanquished country. Furthermore, they seek to gain influence over important industries by claiming the majority of the shares in companies, setting up monopolies, or occupying industrial areas. Moreover, in spite of gradual modifications in detail, there is everywhere apparent a tendency of the victorious States, in the interests of their own exports, to impose upon the vanquished nations commercial treaties, railway and shipping agreements, and alien control of their harbors and railroads.
The specific methods may change with the times, but ultimately the victors will take the spoils. One need only look at the motivations for America's most recent war to see how timeless this passage is.

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