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THE ECONOMIC PROBLEM
5. Thus far political questions have alone been
considered but the post-war settlement must be equally
concerned with the economic position of victors, van-
quished and neutrals. On the political side Group A
proposes to secure a prostrate and divided Germany. Such
a policy would immediately create economic difficulties of
such dimensions as to require profound modification of
Group A ideas at least on the economic side.
It must be as sumed that both those who desire a
punitive peace and those who believe in co-operative
efforts will be agreed in desiring prosperity for the
Allied countries and indeed for the world.
The experience of the last twenty years has
demonstrated how interdependent the world economic system
has become and how poverty and instability in one country
undermines the economic position of others.
The world needs Germany both as a market and
as a source of supplies. The following table shows the
position held by Germany in world trade in 1913 and in
1929:
WORLD TRADE
Imports Exports
1913 1929 1913 1929
% % % %
United Kingdom 15.2 15.4 13.1 10.8
Germany 12.2 9.1 12.4 9.8
U.S.A. 8.4 12.3 12.5 15.8
In 1913 Germany was second only to the United
Kingdom as a factor in international trade and in 1929
still held third place.
In industrial production Germany was second
only to U.S.A. It is true that for the last six years
German industries have been progressively oriented for
war but with the return of peace German equipment, German
skill