By Wilhelm Röpke
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40 WEIMAR REPUBLIC, BROWN TOTALITARIANISM, WORLD WAR II ing of what they do. They can't do that, opines Fried3 without giving away that their vital sap has become thinner. What would be his judgment if they responded with silence to all the attacks showered upon them is anybody's guess, but that his conclusion is quite absurd would be obvious even if so many of the businessmen who talk and write did not burst with vitality and energy. The sole example of Ford should clinch the argument. The more deeply the capitalist world sinks down in the sulphurous vapors of catastrophe, the brighter rises the Russian star for our anti-capitalist intellectuals.
Since international indebtedness in the world, both of commercial and of political origin, has grown TRANSFER PROBLEM IN INTERNATIONAL CAPITAL MOVEMENTS 23 tremendously in comparison with the past and shows every sign of growing still more, we cannot escape the conclusion that international economic relations in the world will not diminish, as some false prophets predict, but will, in defiance of all autarkic tendencies, continue to intensify. There is no greater or more exasperating contradiction than that between this irresistible development and the highly protectionist tariff policies throughout the world, which seems to be further removed than ever from any sort of economic reason.
Haberler, "Transfer und Preisbewegung," Zeitschrift fiir Nationalokonomie, /, 4 (1930), pp. ; F. , pp. ; W. Ropke, loc. ; B. Ohlin, "Transfer und Preisbewegung," Zeitschrift fur Nationalokonomie, /, 5 (1930), pp. 762 et seq. TRANSFER PROBLEM IN INTERNATIONAL CAPITAL MOVEMENTS 17 omic equilibrium due to the reparations payment. It would be yet another example of the case, not infrequent in economic matters, that one party's loss need not be the other's gain, or at any rate may be altogether out of proportion to it, rather like the case of a man who sets fire to his neighbor's house in order to cook his broth for dinner.