Super Imperialism - New Edition: The Origin and Fundamentals of U.S. World Dominance


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What the nation did have was money, labor power and plant capacity for arms productions. A Treasury bulletin explained that "the loans were being made to the Allies to enable them to do the fighting which otherwise the American army would have to do at much expense, not only of men, but of money — money which would never be returned to America, and lives that never could be restored.

Piatt Andrew drew the parallel that the United States was "virtually placed in a situation like that voluntarily assumed by many men in the North during the Civil War, who, having been drafted for the Union armies, hired substitutes to take their places.

Reflections on Empire, Imperialism and United States Hegemony

Thus, as the Ways and Means Committee said in reporting on the first Liberty loan bill, the loan 'will take care of itself and will not have to be met by taxation in the future. On the one hand, private international claims were being wound down by European governments requisitioning and reselling their citizens' U. But in short order liabilities of governments to one another were built up as Europe owed a growing arms debt to the U. Including postwar Victory Loans, obligations of the Allies to the U. Pointing out that this just happened to correspond in value to America's first official loan package to Europe, he concluded: "The sums loaned by America from to help the Allies to fight her battle were but a part of the profits she made out of the Allies before her entry into the war.

Still, the die had been cast for loans, not subsidies: As one banker later observed: "Little did anyone realize, whether in or out of official life, what this decision was to cost. This practice had been employed as early as the fourteenth century, "when Edward III paid French and Flemish princelings to win French territory. When the modern system of European states evolved every contender for European dominance found himself opposed by a combination financed by an implacable Britain.

Being granted monthly, they could be stopped promptly if any ally showed slackness When loans were granted in place of subsidies, they invited unfortunate consequences," as occurred with the Austrian loans of — Exorbitant brokerage fees, followed by economic problems in the debtor countries, tended to become sore spots of international diplomacy, creating almost as much antagonism as gratitude toward the lending government. France had followed a subsidy policy when it helped finance the American War of Independence.

In making funding arrangements with Benjamin Franklin, the government of Louis XVI remitted wartime interest charges, a course that the United States was to pursue after the World War [only] in her funding agreement with Belgium.


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However, the United States was lax in paying the loan portion of French assistance. It was left to Alexander Hamilton eventually to apply his financial genius to a tardy liquidation of this indebtedness, which was converted into domestic bonds and retired in With the exception of the Crimean War, they did not involve large groups of nations, and hence there were neither Inter-Ally debts nor subsidies.

Michael Hudson - Life and Thought 20180507

World War I, however, was a conflagration of unprecedented scope, in both its direct costs and its economic aftermath. Unlike most of the wars of the preceding century, it was fought on the European mainland itself, with great destruction of lives and property. As the war began to engulf the world, it seemed at first that the subsidy system would have to be pursued if the Allies were not simply to drop out of the fighting once they exhausted their economic strength.

Toward the beginning of the war, in February , representatives of the British, French and Russian governments met and agreed to pool their financial as well as military resources. Three years later Britain and France Russia having dropped out of the war induced Greece to join forces on the Allied side by promising that payment for the munitions supplied to Greece "was to be decided after the war in accordance with the financial and economic situation of Greece. Reimbursement could hardly have been contemplated here; as a matter of fact, it was subordinated to the need of securing allegiance and thus was a harking back to eighteenth century methods.

Government representatives likewise had originally told their allies not to worry about conditions of repayment, which were to be settled after victory had been won, implicitly on nominal terms. Government channels.


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The implication was that this financing ultimately would be equivalent to a gift. Senator Kenyon of Iowa announced: "I want to say this for myself, Mr. President, that I hope one of the loans, if we make it, will never be paid and that we will never ask that it be paid. We owe more to the Republic of France for what it has done for U. France came to us with money, with a part of her army and navy in the hour of our sore distress. And without the aid of France it is doubtful if we would have had this nation of ours I never want to see this government ask France to return the loan which we may make to them.

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Super Imperialism - New Edition: The Origin and Fundamentals of U.S. World Dominance Super Imperialism - New Edition: The Origin and Fundamentals of U.S. World Dominance
Super Imperialism - New Edition: The Origin and Fundamentals of U.S. World Dominance Super Imperialism - New Edition: The Origin and Fundamentals of U.S. World Dominance
Super Imperialism - New Edition: The Origin and Fundamentals of U.S. World Dominance Super Imperialism - New Edition: The Origin and Fundamentals of U.S. World Dominance
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