Hilferding on German reparations and currency policy

Research Project

Project/Area Number	14530022
Research Category	Grant-in-Aid for Scientific Research (C)
Allocation Type	Single-year Grants
Section	一般
Research Field	経済理論
Research Institution	Kinjo Gakuin University
Principal Investigator	KAWANO Yuko Kinjo Gakuin University, Contemporary Society & Culture, Professer, 現代文化学部, 教授 (50161344)
Project Period (FY)	2002 – 2003
Project Status	Completed (Fiscal Year 2003)
Budget Amount *help	¥1,000,000 (Direct Cost: ¥1,000,000) Fiscal Year 2003: ¥500,000 (Direct Cost: ¥500,000) Fiscal Year 2002: ¥500,000 (Direct Cost: ¥500,000)
Keywords	Hilferding / Reparations / Socialization Commission / National Eonomic Council / Realistic Pacifism / Ruhr Occupation / Organized Capitalism / Rentenmark / 暫定国家経済協議会
Research Abstract	R.Hilferding regarded the Versailles treaty as entente-imperialism and criticized the London Ultimatum but advocated fulfillment policy, hoping for its peaceful amendment. He insisted on reparations within the limit of production and proposed taxation at the source in the Socialization Commission, while he suggested prompt tax collection, seizure of real assets and control of movables in the Provisional National Eonomic Council Early in 1922 he opposed an obligatory debt in the tax compromise and warned against uncontrolled German -Central Bank. He expected the solution of reparations in English realistic pacifism and worked for diplomatic relations as well as mutual abandonment of reparations by the Rappallo treaty with Russia in April. After the assassination of Rathenau in June, he endeavored to unite the both social democratic parties. As inflation became serious, he not only demanded moratorium and international credit, but planned to use the gold of the Central Bank and issue sound securities. Though he protested against the Ruhr occupation in January 1923, he called for economic reconciliation and criticized the monopolistic, violent organized capitalism. In August Hilferding as finance minister tried radical taxation and an obligatory foreign currency debt, urging to stop the passive resistance at the same time. He prepared a plan to establish a new bank and issue gold banknote in order to prevent hyperinflation. When his plan was interrupted, he drew up a new bill, modifying Luther's plan, based on Helfferich's, on his own way, which served for rentenmark. After the end of the passive resistance in late September, he still struggled for sound finances and supported the coalition government against reactionary movements at the beginning of October. Afer all it could safely be said that he played no small role to resolve reparations peacefully, defend the democratic republic and stabilize economy in the national crisis.