Five chapters from Morgenthau’s book, Germany is our Problem, here published with an introductory note by Ellopos. Emphasis, in bold or italic letters, by Ellopos. Complete book in print.
Under cover of cartel agreements, Germany penetrated the
economy of other nations, including the United States. Using their cartel
affiliates or subsidiaries, German industrialists built up a network which
impaired the production of other nations, obtained sources of foreign exchange
for Germany, gathered economic intelligence and spread Nazi propaganda. The
argument against attempting to control another nation's economy down to the last
detail is that even with whole armies of inspectors and technicians it is
almost impossible, as the Nazis found in the countries they occupied. Applied
to the internal economy of Germany, this is a sound argument. But foreign trade
is another matter. It can be controlled by a few key people in a few key
places. The two problems are as different as collecting a nation's internal
revenue and collecting the customs. The United States needs fifty thousand
persons for the first task; the second is efficiently performed by eight
thousand.
The elimination of German heavy industry is no hate
campaign. The world has seen enough of hatred, and the United Nations have no
need to adopt the policy of their enemies. Nor is the program a panacea for
peace. It is, however, an essential preliminary to peace, to realization of the
ideals for which the United States has fought, to the security of all nations
(even including Germany), and to that better world which the sacrifices of all
peoples have entitled them to expect. What to do with Germany is still the
first of the big postwar questions the United Nations must answer. The right
answer will give us a tremendous lift toward the attainment of our other
aims—toward what Woodrow Wilson called a "community of power" to replace
the balance of power and keep the peace, toward the increasing exchange of
goods and ideas among nations, toward the continuance of full production and
full employment at home.