VFrom 1914 to 1918, half the world did not use its economic and intellectual powers to increase prosperity, but to destroy it in a mutual struggle. When the war ended, the watchword was reconstruction. From the outset, the implementation of this slogan was severely hampered by the Versailles Treaty, which disregarded economic reason and the right of peoples to self-determination. Nevertheless, the years from 1919 to 1922 were years in which many relationships began to be rebuilt.
The forces of the economy have been switched back to peacetime tasks. Abroad, but also in Germany, for which these years were constantly characterized by the struggle against oppressive burdens and therefore also by the currency collapse, a piece of the way has been covered in the development of productive forces. The year 1923 begins with the breaking of this tenuous thread of development. With the occupation of the Ruhr and Germany’s economic defense against the military act of violence, we have entered a new period of destruction.
That this period should only be a short interlude, after which the way should be clear for real reconstruction, must be the wish of all intelligent people, regardless of the nation. But for the sake of that desire we must not delude ourselves that it is not the community of wise men that rules the world today.
What does the new period of destruction mean for the German economy? First of all, one thing must be said: if this new period of struggle was inevitable, then, after the years of work on reconstruction, we can muster more resistance in this struggle than was the case in 1919 and 1921. therefore the attempt to postpone this crisis has not been fruitless, even if its present occurrence is to be viewed as a confirmation, like those who have previously viewed it as inevitable. our resilience has grown stronger; this does not mean that we want to underestimate the damage caused by the destruction.
The German transport system is being disrupted at what is perhaps the most sensitive point in the entire network. German production is severely affected in its most important basis, coal. How far from these two centers of destruction the direct inhibitions will spread to other areas of production cannot be estimated at the moment, it will depend essentially on the duration of the state of struggle. The indirect effect of the currency collapse on the economy as a whole can be seen more clearly because we have experienced something similar, albeit not in degree. The fall in value must be followed by the price increase at breakneck speed and the increase in income can only follow a little more slowly, since only a reduced national product is available for distribution. In many areas this means a slacking of internal purchasing power – in some areas, above all in the most essential food supply, this slacking is overshadowed at the moment by the violent onset of advance purchases by the wealthy classes in times of jerky price increases – with a simultaneous gigantic increase in demand of operating resources for stocking up on new raw materials and for paying wages.