2. Peace and the Future of German Industry
Brandt, Albert A.
2. Peace and the Future of German Industry Planned Economy a Prerequisite of Reconstruction By Albert A. Brandt LONG-RANGE considerations will establish thai a aaerc transfer of ' ownership of...
...accordingly created a vested in terest in tho continued existence at* these governments as long as the debts remain unpaid...
...If such markets sre not available, the heavy industries in Germany—even converted to peacetime use—will have to be cut down...
...The direct influence of the state upon its war potential by eliminating capitalist intermediaries, however, «ill not warrant in itself a pacifist policy...
...Germany's hesvy industry must be nationalized Instead •f an immediate treaty of peace, the state of armistice should last for at least ten years...
...Germany's productive capacity in structural steel and iron could be put to work for' such schemes...
...Tho French, for instance, have proposed that the United Nations should become shareholders in postwar Germany's iron, steel and chemical industries...
...Let us remember that such a plan failed after the last war...
...Kastern Kurop.au countries as well as Italy, however, 1 will absorb a much greater amount Of the bletek diamonds once their secondary and terMary tndua-tries are developed...
...No abnormal growth of any branch of the Kei.tr- industrial facilities csn be permitted...
...Let us look shortly at the plans which have been set forth in regard to Germany's heavy industry...
...IMewl> established frontier* divided up parts •f the Kuhr and Lorraine industries...
...A complete reorganization of Germany's investment goods industry is a necessity...
...Jew., who ferried the largest •>»s-le group ot jtftoiimmMitTo mtimet ad to total 110,000 of Whgm...
...Ordinary machine tools shall lie produced only as far as they can be absorbed by a peacetime economy...
...Th*y will need...
...In 1933 production was so rxressive that millions of workers were unemployed...
...Germany with its industrial rapacity is in a key position of supply i ing most of the immediate requirements...
...N ilionalization will not bring about any rm.dsmentai changes in the economic framework of nirlioe compenies...
...Till...
...The elimination of employment possibilities would result in, a very dangerous factor - -mass emigration...
...The latter course demands thst we plan for the consumption of all those piodurts that German industry is permitted to produce...
...During this time the Cerma* people will have a chance to build their twi future under st.i.l supervision' of the United Nations...
...jUgfe...
...miliid of the capital goods imlustu v should remain ia the hand* nf an international rommission—on which international trade unions shall be repre seated—until it can be left in the hands of a reliable democratic state...
...Germany had an export surplus of pit coal of 23,360,000 tons in 1936—during a time of strenuous <wsr preparations—of 136,400,000 mined tons which may be considered her maximum capacity...
...These question* can only be answered in relation to potential msrkets...
...The development of synthetic fuel processes snd the use of domestic low iron content ore in the blast <fur-naces, rut down possible exports in I03H to 11,070,000 tons...
...i-^iHfer II has lieen'elrifW'iaheil thai ''.,100 Mot landers died M."t*erinany while another 50,000...
...Planned industrial development insid* the widest possible economic fold m necessary...
...Belter crops snd quality agricultural products will open new markets and permit largei import quotas of manufactured consumer goods...
...many towns snd villages were destroyed, and because most patriot* need forged documents...
...Our five year plan for tbe restoration of the French aviation pVevUes that by lftSO anyetee will be able te hoard n pleae for a MX) mil* trip...
...The Lerraiae steel and iron work* were returned to France...
...After the war theie will t>e a great coal surplus which must be absorbed or the mines must' be destroyed...
...On the other hand, however, they have transplanted some important key industries to Poland and equipped them with the most modern productive machinery...
...The economic future of Qfrmany cannot be...
...The cnoice before us is two-fold: either Germany will sgsin ruthlessly rule the continent or she ran become an important factor in the cooperative effort of ' Europe for world peace...
...The millions of Nasi fled Germans, particularly the JJazi youth, would be a danger to.aay countiy willing to absorb them...
...New factories, new blast far. naces for the manufacture of ire* and steel, new chemical works, were bnilt...
...v*st amounts of cottl for their -reconstruction...
...Concrete ero-gjrff1- problems, generally, will prove to |e of greater isaportanre in the reconstruction of a better and more peaceful gorope than merely national aims and characteristics...
...lieinriii.iiii.lued territories woald...
...2. Peace and the Future of German Industry Planned Economy a Prerequisite of Reconstruction By Albert A. Brandt LONG-RANGE considerations will establish thai a aaerc transfer of ' ownership of German heavy industry will net he enough...
...After certain parts of Germany's war potential have been discarded and her monopolies broken, the groups of classes which have been the stronghold of Pan-German aggression rendered impotent, her industries may play an important part for the future of the world...
...Control of the German heavy industry is a necessity—for n sound bajancc between the production of consumer goods and capital goods must be established...
...More appropriate measures must he taken than reorganizing those productive capacities which existed before the war...
...Automobiles snd other automotive machines shsll be produced within the range of guaranteed civilian consumption, All German imports, especially in key metals, which csn be used for rearmament, must be rigidly controlled...
...All German airplane plants must be dismantled snd the necessary equipment for commercial purposes shall be imported under strict control...
...And when foreign capital waa gradually withdrawn, their business became depreaaed...
...The less we dislocate Germany's industries, the better the chances for the future welfare of the countries in such large economic unions to which Germany must belong herself...
...This difficulty could be Hrminat •d through th* organisation of some supra-national agencies...
...Kngland, Peland and Belgium will not he great competitors for coal after the war...
...l'et*d*at plan far the dismemberment »l (be Ketch proposes a division of German heavy industry asteng Kuania, France, and other countries...
...There would be the danger too...
...Repatriation official* con aider it unlikely that exact figures will lie known for yeajfr m Holland...
...Germany's democracy can only be" reestablished by fundamental Social and economic changes...
...It is extremely drnWt to determine the precise number ot persona involved bscauie population records...
...H. Cole, recently warned •f a process of investment which afceegis the piewai national states as unite for teceipt of leans...
...In spite of all destruction, Poland's industrial facilities may prove, after the war, more efficient than they were before Hitler's aggression...
...that cheap goods might eventually flood the world markets, harming our own living standards and those of other nations...
...The standards of living of the poorer parts of Europe must be raised at the same time as we plan for increasing industrial employment in Germany and in Central Europe...
...The Nszis have dismantled some factories in Polsnd, th* Ukraine, and Czechoslovakia and shipped valuable machinery to Germany which in all fairneas must be returned...
...Th* effect will be to entrench each separate 9*t)ofa}tpsyjip-mcnt because it will become * debtor of the capitalists of the richest coajmb-untaf perhaps of (hair governments end t her* will be...
...The mere recon-atruction of the pre-war political struc-tare.oi Europe or the creation of federation* of the Eastern European countries, will be of no avail as long as the level of development of such countries is far behind that of Western Europe...
...Inflated German heavy industry mu»t be given the task of produciitg,C*n*umer goods for the common welfare of that impoverished population ofVptyff*, Looking forward to large 'economic* units—larger than national boundai*** aome institutions for mutuaL^eopeTa-tions must be established, f lijWjnTlsit ments by th* wealthier nations should not follow the line taken by foreign in vestineajta heretofore...
...German industrial barons, however, began istwie' diately te retrieve what they had leat with the help of American and British capital...
...To some degree the German capital goods industry has been divided up by Hitler himself...
...Power stations and production facilities for natural and synthetic fuel must be curtailed and supervised...
...Their efficiency was increased and thus the capital goods industry became top-heavy again...
...All armament industries which cannot lie reconverted must be destroyed...
...She will be, eventually, the best customer backward European countries can possibly have for their own products— mainly agricultural...
...ts it possible to spply concrete measures without destroying the highly productive industrial system in Germany' Is it possible to permit Germany to function again aa an important industrial bower belt on the continent, retaining its well integrated productive economy...
...separated from that tf Europe at a, whale...
...Certain grades of steel, chemicals and dye stuffs shall not lie manufactured...
...The BrUiso" econi omist, (LI...
...The economic future of Germany must be closely related to the regulation ot economic relationships inside the continent and the continent's relationships with the world...
...by necessity, tarn te reorganization and thus not only lower their own living staadarda, bet that of other countries...
...Germany's coal industry, too, could remain at a high level of production under stat* control...
...Investment, en a large scale in some kind of European Public Utilities system—on lines of the TVA—international highways, new developments of rails and water transports, would go a lung way in producing better living standards in the poorer countries...
...th* rep* i...in,., .ectiow berirves...
...Industries, which do not require s greet smount of skilled labor, should be encouraged to open new ways of employment...
...But toes* rsnasscss Will make it po»•ible to place nt the disposal of th* entire notion *r key industry which heretofore was monopolised hy Iruats...
...patriot)** in Holland T*HK latest official estimate of the mim her of Netherlander* Who Were ferewty deported to Germany Is between tttjm snd 400,000...
...The larger the economic units that will absorb German products, the greater the proportion which can continue to exist...
...Another proposal, which gains more favor, is the internationalization of the German investment goods industry...
...sien of French Sir service...
...At first this solution sounds plausible, but it epeld lead to cartels which would limit production, hold up prices, stiffen competition, and thus make full employment and production impossible...
...In this manner, it was said, they could control the output so that they could not reve.it agsin to instruments of sggression...
...To control production., in Germany, however, without at the same time controlling msrkets for' it's prod-nets,'is futile...
...At the same time, germs of new social unrest would be planted through unemployment and great assets to civilization would be lost...
...Tho backward eastern European countries, for instance, have been retarded In their economic development through tbe lack of (uitabi* power transport and irrigation...
...Of II, 000 prison. ,.f war, Mbt 'thousand have so fai been . el urnedf;AtnJ registered 'til ¦«)---NAIIONAIIIATION Of FRFNCH AIR LINK At an interview with Paris Presse reporter., Charles Tillon, Minister *f Air, explained that the planned nationalization of airline*) would lead to the expan...
...It hss been proposed at Potsdsm to completely dismantle and destroy H. Nothing will be solved by throwing millions of German workers out of work whose skill is desperately needed for the reconstruction of Europe...
...W,oo<i died...
Vol. 28 • September 1941 • No. 39
