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A REVISION OF THE TREATY

CHAP.

EXCURSUS I

COAL

The question of coal has considerable importancefor Reparation, both because (in spite of the exaggera-tions of the Treaty) it is a form in which Germany can make important payments, and also because ofthe reaction of coal deliveries on Germany 's internaleconomy. Up to the middle of 1921 Germany 'spayments for Reparation were almost entirely in theform of coal. And coal was the main topic of theSpa Conference, where for the first time the Govern-ments of the Allies and of Germany met face toface.

Under the terms of the Treaty Germany was todeliver 3,400,000 tons of coal per month. Forreasons explained in detail in The Economic Conse-quences of the Peace (pp. 74-89) this total was afigure of rhetoric and not capable of realisation.Accordingly for the first quarter of 1920 the Repara-tion Commission reduced their demand to 1,660,000tons per month, and in the second quarter to 1,500,000tons per month ; whilst in the second quarter Germany actually delivered at the rate of 770,000 tons permonth. This last figure was unduly low, and by thelatter date coal was in short supply throughout theworld and very dear. The main object of the Spa