io 4 THE ECONOMIC CONSEQUENCES OF THE PEACE CH.

of the contract with the enemy), that there shall be"no contributions" and "no punitive damages."

It has sometimes been argued that the preambleto paragraph 19 1 of the Armistice Terms, to the effect"that any future claims and demands of the Allies and the United States of America remain un-affected," wiped out all precedent conditions, and leftthe Allies free to make whatever demands theychose. But it is not possible to maintain that thiscasual protective phrase, to which no one at thetime attached any particular importance, did awaywith all the forma] communications which passedbetween the President and the German Governmentas to the basis of the Terms of Peace during thedays preceding the Armistice, abolished the FourteenPoints, and converted the German acceptance of theArmistice Terms into unconditional surrender, so faras affects the Financial Clauses. It is merely theusual phrase of the draftsman, who, about to rehearsea list of certain claims, wishes to guard himself fromthe implication that such list is exhaustive. In anycase this contention is disposed of by the Allied

1 "With reservation that any future claims and demands of the Allies and the United States of America remain unaffected, the following financialconditions are required : Reparation for damage done. Whilst Armisticelasts, no public securities shall be removed by the enemy which can serveas a pledge to the Allies for recovery or reparation of war losses. Im-mediate restitution of cash deposit in National Bank of Belgium, and, ingeneral, immediate return of all documents, of specie, stock, shares, papermoney, together with plant for issue thereof, touching public or privateinterests in invaded countries. Restitution of Russian and Roumanian gold yielded to Germany or taken by that Power. This gold to be deliveredin trust to the Allies until signature of peace."