194 THE ECONOMIC CONSEQUENCES OF THE PEACE ch.

on the life of Europe , that its attributes deserve aseparate examination.

There are no precedents for the indemnity im-posed on Germany under the present Treaty; forthe money exactions which formed part of thesettlement after previous wars have differed intwo fundamental respects from this one. Thesum demanded has been determinate and has beenmeasured in a lump sum of money; and so longas the defeated party was meeting the annualinstalments of cash, no further interference wasnecessary.

But for reasons already elucidated, the enactionsin this case are not yet determinate, and the sumwhen fixed will prove in excess of what can be paidin cash and in excess also of what can be paid atall. It was necessary, therefore, to set up a body toestablish the bill of claim, to fix the mode of payment,and to approve necessary abatements and delays. Itwas only possible to place this body in a position toexact the utmost year by year by giving it widepowers over the internal economic life of the enemycountries, who are to be treated henceforward asbankrupt estates to be administered by and for thebenefit of the creditors. In fact, however, its powersand functions have been enlarged even beyond whatwas required for this purpose, and the ReparationCommission has been established as the final arbiteron numerous economic and financial issues which