How can Europe survive

[Title Page and Publication Information]: The title page and publication details for Hans F. Sennholz's 1955 work 'How Can Europe Survive', including publisher locations in New York, Toronto, and London, and copyright information. [Table of Contents]: A comprehensive table of contents outlining the book's structure, covering ideologies of peace, various doctrines of unification (Streit, Coudenhove-Kalergi, Socialists), and specific historical steps toward union such as the Benelux, OEEC, Bretton Woods, and the ECSC. [Front Matter and Introduction]: The author outlines the book's structure and central thesis: that government planning and the welfare state are the primary causes of international economic disintegration. He argues that current unification plans fail because they attempt to maintain the very policies of interventionism that cause conflict, rather than addressing the root cause which is the abandonment of the free market. [Part One: On Peace and Present-day Ideologies]: This section examines the rise of interventionism and the 'middle-of-the-road' economic policies advocated by thinkers like Alvin Hansen and Lord Keynes. It details the specific planning measures adopted by the United States, Great Britain, Canada, Australia, and Sweden, focusing on the shift from individual opportunity to government-guaranteed employment as the primary social objective. [The Fallacies of Interventionism and Historical Analysis]: Sennholz provides a detailed historical critique of the interwar period (1919-1939), arguing that the Great Depression was caused not by the market economy, but by government interventions including credit expansion, protectionist tariffs like Hawley-Smoot, and New Deal regulations. He utilizes Benjamin Anderson's analysis to show how these policies prevented natural market recovery and led to chronic unemployment and international conflict. [Part Two: Doctrines and Plans of Unification - Clarence K. Streit]: The author analyzes Clarence Streit's 'Union Now' proposal for a federal union of democracies. While Streit aims for individual freedom, Sennholz argues the plan is fundamentally flawed because it ignores the economic realities of free migration and trade. Specifically, he contends that American citizens would never accept the wage equalization resulting from free migration, nor would they abandon the protectionist agricultural and industrial policies that are incompatible with a true customs-free union. He concludes that a union cannot contain both capitalist and socialist member states because socialist planning requires the very trade barriers the union seeks to abolish. [Streit's Union and the Infringement on Liberty]: Sennholz critiques Clarence Streit's proposed Union by detailing how its centralized controls over foreign trade, currency, and 'economic rights' would inevitably erode individual liberty. He argues that government intervention in trade and money leads to arbitrary state power and moral injustice through inflation, while Streit's proposed labor protections are based on fallacious Marxian assumptions about exploitation in a capitalist system. [The Socialization of Communication and Contra-cyclical Policies]: This segment addresses Streit's proposal for Union control over postal and communication systems, highlighting the inefficiency and fiscal burden of state-run services compared to private industry. Sennholz also refutes Streit's 'contra-cyclical' economic functions, arguing that government intervention and credit expansion actually cause and prolong depressions rather than curing them, citing the 1930s as evidence. [Streit's Critique of Capitalism and Summary of Objections]: Sennholz defends capitalism against Streit's criticisms, arguing that the 19th century was the most peaceful and prosperous era because of capitalist principles, despite frequent government interventions. He concludes his critique of Streit by noting that while Streit's objectives of peace and freedom are admirable, his methods are flawed because modern political parties have abandoned the classical liberal values necessary for a successful voluntary union. [R. N. Coudenhove-Kalergi and the European Parliamentary Union]: The text introduces Count Coudenhove-Kalergi and his Pan-European movement, outlining his goals for a European federation to maintain independence from the US and Russia. Coudenhove-Kalergi's vision includes a customs union, the exploitation of African colonies for raw materials, and a reliance on socialist support to overcome capitalist resistance to unification. [Critique of Pan-European Autarky and Socialist Planning]: Sennholz provides a critical analysis of Coudenhove-Kalergi's Pan-Europe plan, arguing it is a blueprint for wholesale socialism that would lead to poverty and conflict. He specifically analyzes the economic implications of a Pan-European customs union, demonstrating how uniform protective tariffs would force all member states to adopt the highest existing trade barriers, resulting in economic isolation (autarky) and the artificial propping up of inefficient industries. [The Economic Consequences of a Uniform European Tariff]: Analyzes the economic effects of a uniform European tariff, arguing that it favors protected industries while harming consumers who previously relied on cheaper extra-European goods. The author contends that such barriers lead to depression in American export industries and subsequent unemployment in European export sectors due to lost foreign exchange, ultimately lowering the standard of living in high-trade nations like Switzerland and Belgium. [Public Opinion and the Realizability of European Unification]: Critiques the feasibility of Coudenhove-Kalergi's unification plan by arguing that citizens will not voluntarily accept the lower living standards and unemployment necessitated by economic readjustment. The author highlights the resistance of powerful pressure groups, such as German farmers and labor unions, who benefit from national protectionism and would oppose the abolition of inter-European trade barriers. [The Socialist Character of Coudenhove-Kalergi's Pan-Europe]: Argues that Coudenhove-Kalergi's plan for European unification is essentially a socialist program that disregards property rights and individual freedom. The author draws parallels between Coudenhove's views on competition and imperialism and those of Lenin, concluding that the plan relies on central planning, state-led projects like the melioration of the Sahara, and the eventual destruction of private agriculture. [The Socialist Movement for a United States of Europe]: Traces the history of the socialist movement's approach to European unity from 1947, noting their initial rejection of non-socialist schemes as 'reactionary'. The narrative describes the shift in 1948 toward supporting a federation as a defensive measure against 'American economic imperialism', provided the political structure eventually allows for the realization of socialist objectives like central management of the economy. [Critique of Socialist Unification and the Role of American Aid]: Critiques socialist principles of unification, arguing that central planning inherently leads to world market disintegration and national disparity. The author asserts that American aid has paradoxically financed the 'successes' of European socialism—such as nationalization and welfare spending—thereby postponing the necessary return to a free market economy while fostering anti-American sentiment among socialists who view the U.S. through a Leninist lens of imperialism. [Capital Migration, Intergovernmental Loans, and the Failure of Socialism]: Examines the transition from private capital lending to intergovernmental aid, noting the risks of international conflict inherent in state-to-state debts. The author further argues that socialism is not a barrier to communism but a precursor, citing historical examples from Russia, Poland, Czechoslovakia, and Italy to show how socialist policies destroy the foundations of democracy and individual liberty, eventually yielding to totalitarianism. [The European Federalist Union and the Corporativist Model]: Discusses the European Federalist Union, which promotes a 'functional' representation of society based on communities and industries rather than traditional parliamentarism. The author critiques this model as a form of corporativism or 'solidarism' that leads to economic restriction, industrial conflict, and a lowering of living standards, ultimately identifying its roots in early socialist thought that seeks to replace market planning with administrative control. [The United Europe Movement and the British Commonwealth Model]: Analyzes Winston Churchill's 'United Europe Movement' and its reliance on the British Commonwealth as a model for unification. The author argues that the Commonwealth's system of 'trade preferences' is a form of economic nationalism that destroys world trade and leads to internal dissolution as member states inevitably seek protection against one another. True unification, the author contends, requires the economic freedom of the individual, which is absent in both the Commonwealth and the proposed European schemes. [The Coordination of European Unity Movements and The Hague Congress]: Describes the 1947 formation of the International Committee of the Movements for European Unity and the subsequent 1948 Congress of Europe at The Hague. This meeting, presided over by Winston Churchill, led to the creation of the 'European Movement' and established committees to draft resolutions on political, economic, and cultural unification, including the proposal for a Council of Europe. [Resolutions of the Hague Congress and the Westminster Economic Conference]: This segment details the specific political and economic resolutions passed at the Hague Congress and the 1949 Westminster Economic Conference. It outlines the proposed creation of a European Consultative Assembly, a Court of Human Rights, and a Customs Union with a common external tariff. The text highlights controversial proposals for the socialization of basic industries (coal, iron, steel, electricity, transport) under governmental bodies and the regulation of agricultural markets through Commodity Councils, while also discussing the complexities of currency convertibility and labor protection within a unified Europe. [Appraisal of the European Movement: Obstacles to Unification]: Sennholz provides a critical appraisal of the European Movement's resolutions, arguing they are based on incompatible socialist and interventionist ideologies. He contends that policies of full employment, credit expansion, and labor protection are inherently nationalistic and create disparities that prevent true unification. The author asserts that a customs union cannot function alongside government-mandated welfare programs and that the proposed socialization of basic industries reflects a prevailing socialist ideology in Europe that is fundamentally at odds with a free market and international cooperation. [Historical Steps Toward European Union and Institutional Overview]: An overview of the various institutions and treaties established post-WWII to promote European unity. It covers the Benelux Customs Convention, the Economic Commission for Europe (ECE), the Organization for European Economic Cooperation (OEEC) related to the Marshall Plan, the Council of Europe, the European Payments Union, and the European Coal and Steel Community. The segment includes a comprehensive table showing member state participation across these different organizations as of 1955. [Member States Participation Table]: A detailed reference table listing European and North American nations and their membership status in various organizations including Benelux, ECE, OEEC, Council of Europe, EPU, ECSC, Brussels Treaty, and NATO. [Aristide Briand and the Initiative for a European Union]: This section examines the efforts of French statesman Aristide Briand to establish a European Union within the League of Nations during the interwar period. Sennholz analyzes Briand's humanitarian motivations and the 1930 Memorandum on a European Federal Union. He critiques the failure of these efforts, attributing it to the fundamental conflict between Briand's humanitarian goals and the rising tide of economic collectivism and nationalism. The text argues that state ownership, central planning, and trade restrictions are inherently anti-humanitarian and lead to international conflict, as evidenced by the eventual rise of National Socialism. [The Benelux Economic Union: Origin and Organization]: An analysis of the Benelux Economic Union, starting from the 1943 monetary agreement and the 1944 Customs Convention. It describes the goal of creating a unified economic bloc to compete in the postwar market and the structural organs created to manage customs and commercial policy coordination between Belgium, Luxembourg, and the Netherlands. [The Implementation and Challenges of the Benelux Union]: This section details the early steps and subsequent delays in implementing the Benelux Customs Convention. It describes the creation of administrative bodies like the 'Meeting of the Prime Ministers' and the 'Secretariat General' to resolve disparities in tariff lists and protectionist needs. While the Customs Union officially began in 1948, the transition to a full Economic Union was hampered by domestic problems, trade deficits, and the lack of coordination in agricultural and fiscal policies. [Economic Stumbling Blocks and the Failure of Benelux Unification]: Sennholz analyzes the failure of the Benelux nations to achieve deep economic integration, attributing it to the clash between Dutch state interventionism and Belgian qualified liberalism. He critiques the 'balance-of-payments' doctrine and explains how inflation combined with exchange controls creates artificial shortages according to Gresham's Law. The text highlights specific obstacles such as divergent agricultural subsidies, beer excise taxes, and the resistance of trade unions to wage competition and industrial readjustment. [The Ideological Roots of Economic Policy]: The author challenges the notion that material surroundings or war damage dictated the divergent economic paths of Belgium and the Netherlands. He argues that the choice between socialism and liberty is a matter of ideology and human conception of means and ends, rather than a historical necessity. He asserts that liberty is the generator of wealth, particularly for poor or damaged nations, rather than a luxury for the rich. [The Economic Commission for Europe (ECE) and Central Planning]: This section introduces the Economic Commission for Europe (ECE), a UN body established to coordinate European reconstruction. It details the ECE's role in allocating scarce resources like coal and timber and its various committees' efforts to standardize industrial and agricultural practices. Sennholz provides an appraisal of the ECE, noting that its mission presupposes a high degree of government intervention and nationalization within European economies. [The Structure and Impact of Nationalized Industries in Europe]: This segment details the thirteen fields of basic economic activity nationalized by European governments, including central banking, transportation, and heavy industry. Sennholz argues that these government enterprises typically run at deficits and are sustained through levies on the private sector, such as heavy taxation, inflation, and priority quotas for raw materials. He criticizes the Economic Commission for Europe (ECE) for promoting government coercion over individual consumer choice and market laws. [The United Nations and Economic Nationalism]: Sennholz analyzes the internal contradictions of the United Nations Charter, specifically Articles 55 and 62. He argues that while the UN claims to promote international cooperation and human rights, its economic provisions regarding 'full employment' and 'higher standards of living' actually encourage economic nationalism, trade restrictions, and international conflict. He concludes that the UN, like the League of Nations, is destined to fail because it lacks a spirit of genuine liberalism and serves as a platform for ideologies hostile to a world economy. [Organization for European Economic Cooperation (OEEC) and the Marshall Plan]: This section outlines the formation of the OEEC in 1948 as a response to the economic breakdown caused by socialist practices in post-war Europe. It describes the role of the Marshall Plan and the Economic Cooperation Administration (ECA) in providing aid. The segment details the specific objectives of the Convention for European Economic Cooperation, including the modernization of equipment, the reduction of trade barriers, and the stabilization of currencies among the nineteen member countries. [The European Payments Union and Counterpart Funds]: This segment explains the technical operations of the European Payments Union (EPU) and the management of 'counterpart funds'—local currency deposits equivalent to US dollar grants. It provides detailed tables showing the distribution of these funds across various European nations (France, UK, Germany, etc.) and their use for military production, debt retirement, and subsidies for nationalized industries like railroads and power facilities. [Critique of OEEC Trade Liberalization and the 'Dollar Shortage']: Sennholz provides a critical appraisal of OEEC's quota removal program, arguing that the reported 75% liberalization is misleading because it primarily targeted non-restrictive quotas. He argues that the 'dollar shortage' is a myth created by government policies of inflation and exchange control rather than American industrial supremacy. He contends that the US government failed its obligation to demand internal financial reforms from debtor nations, instead using aid to bolster socialist and interventionist regimes. [The Council of Europe and the Ideological Obstacles to Unity]: This section covers the background and aims of the Council of Europe, established in 1949. Sennholz argues that the Council has failed to achieve meaningful unification because of the prevailing ideologies of welfare and socialism. He criticizes parliamentarians for advocating international cooperation in Strasbourg while simultaneously supporting protectionist and interventionist policies in their home capitals, creating a fundamental contradiction that prevents genuine European integration. [European Monetary Cooperation and the Bretton Woods Agreements]: Sennholz discusses the transition from the gold standard to government-controlled monetary systems. He analyzes the Bretton Woods Agreements and the creation of the International Monetary Fund (IMF) as attempts to manage the consequences of inflation and credit expansion through international consultation. He argues that these institutions were designed to facilitate 'high levels of employment' through planning rather than returning to a sound, independent monetary order. [Articles of Agreement and Objectives of the International Monetary Fund]: This segment details the specific articles and provisions of the International Monetary Fund (IMF) as established at Bretton Woods. It covers the objectives of assisting in multilateral payments, the mechanics of member quotas, interest charges on currency balances, and the implementation of government controls on capital transfers and 'scarce' currencies. The text concludes with the optimistic view of proponents like Henry Morgenthau Jr., who saw the Fund as a foundation for global economic planning. [Critique of the Bretton Woods Agreements]: Sennholz provides a historical and theoretical critique of the Bretton Woods Agreements. He contrasts the 19th-century international money markets and the gold standard with modern inflationary policies. The author argues that the Agreements were designed to allow simultaneous global inflation and to prevent capital flight through government coercion rather than sound fiscal policy. He asserts that the stated goals of 'stability' and 'cooperation' are euphemisms for increased state authority over individual economic actions. [The Fallacies of IMF Quotas and Interest Rates]: The author examines the technical failures of the IMF's structure, specifically focusing on how quotas are arbitrarily assigned without regard for a nation's ability to repay. He argues that the system rewards inflationary practices by allowing countries to swap self-created paper currency for hard assets like US dollars. Furthermore, he criticizes the Fund's interest rate structure for ignoring market laws and notes that the system puts borrowing debtors in control of the lending process, leading to a lack of restraint. [Exchange Controls and the Road to Tyranny]: This section explores the social and political consequences of foreign exchange controls. Sennholz argues that when governments fix exchange rates and inflate currency, they create artificial scarcities that necessitate rationing. This rationing gives government officials life-or-death power over industries dependent on imports, leading to corruption, the suppression of political dissent (through the control of newsprint and book imports), and the ultimate loss of individual liberty. He links these outcomes directly to the provisions of the International Fund. [Currency Devaluation, Black Markets, and Historical Misrepresentations]: Sennholz critiques the IMF's failure to achieve monetary stability, noting the proliferation of legal devaluations and the massive growth of illegal black markets in currency. He challenges the historical narrative used to justify the IMF, comparing the failed post-WWI stabilization loans (which lacked conditions) with the successful 1920s stabilizations in Austria, Hungary, and Germany, which required balanced budgets and a return to the gold standard. He argues that true stability comes from internal fiscal discipline, not international funds. [The European Payments Union (EPU) and Intra-European Trade]: This segment transitions to the European Payments Union (EPU), explaining its economic background as a response to post-WWII shortages and the failure of national exchange controls to revive inter-European trade. It describes the evolution from the First Intra-European Payments Agreement and the system of 'drawing rights' (effectively gifts between central banks subsidized by US aid) to the more complex multilateral settlement system of the EPU. The author highlights how these systems attempted to replace individual freedom with international institutional control. [Mechanics and Critique of the EPU]: The final section of the chunk analyzes the operational mechanics of the EPU, including the role of the Bank for International Settlements, the quota system, and the inclusion of the Sterling Area. Sennholz provides a scathing critique, arguing that the EPU is merely a supplement to national inflation and exchange controls. He contends that the Union encourages credit expansion, penalizes sound money policies by pressuring creditor nations to inflate, and grants credit to governments running large deficits, thereby perpetuating European economic disequilibrium. [The European Payments Union (EPU) as a Supplement to National Controls]: Sennholz critiques the European Payments Union (EPU) as an institutionalized supplement to national policies of inflation and exchange control. He argues that by granting credit to central banks that are inflating their currencies, the EPU perpetuates unfavorable balances of payment and prevents the natural corrective mechanisms of the gold standard. The section contrasts the EPU's inflationary bias with the stability of the gold standard and highlights how the union relies on American financial aid to survive. [The European Coal and Steel Community (ECSC): Origins and Objectives]: This section details the formation and stated mission of the European Coal and Steel Community (ECSC), often referred to as the Schuman Plan. It describes the institutional structure—including the High Authority, the Common Assembly, and the Court of Justice—and the goal of creating a common market for coal and steel to render war between member states 'unthinkable.' The text outlines the ECSC's mandate to regulate production, prices, and social conditions within the participating European nations. [Economic and Social Provisions of the ECSC Treaty]: An exhaustive review of the specific economic and social articles of the ECSC Treaty. It covers the High Authority's power to set production quotas, fix maximum and minimum prices, regulate consumption priorities during shortages, and manage labor retraining. The section also discusses the abolition of internal customs duties and the coordination of commercial policies toward third countries, including anti-dumping measures and tariff harmonisation. [Criticism of the ECSC: Socialization and Supranational Monopoly]: Sennholz provides a scathing critique of the ECSC, arguing that it represents the socialization of basic industries under a supranational monopoly. He contends that the High Authority's power to fix prices and allocate resources ignores economic laws and will inevitably lead to national conflicts over 'fair' prices and tax discrepancies (such as the turnover tax). He argues that the community does not prevent war but creates new antagonisms by substituting government planning for individual freedom and market competition. [The Brussels Treaty, Western Union, and NATO]: This section examines the military alliances formed to counter Soviet expansion, specifically the Brussels Treaty (Western Union) and the North Atlantic Treaty Organization (NATO). Sennholz analyzes the shift from the failed European Defense Community (EDC) to the Western European Union. He critiques European nations for prioritizing welfare spending over defense, noting that the U.S. bears a disproportionate share of the military burden while European states continue to pursue self-destructive economic nationalism. [An Alliance of Freemen: The Path to Recovery]: The concluding part of the book outlines Sennholz's vision for a 'liberal' unification of Europe based on individual liberty rather than government planning. Drawing on F.A. Harper's definitions of liberty, he argues for the restoration of property rights and the abolition of all special privileges. He proposes a specific plan for monetary reconstruction—returning to the gold standard to end inflation—and advocates for a completely free-trade area where the movement of men, goods, and capital is unhindered by the state. [Conclusion: The Choice Between Welfare and Unification]: Sennholz concludes by presenting an absolute choice for Europe: the welfare state or interstate unification. He argues that the two are fundamentally incompatible because the welfare state requires national barriers to protect its social programs, while unification requires their total removal. He warns that unless Europe abandons interventionism and restores individual liberty, it will remain fragmented and vulnerable to communist conquest. The final message is that strength and unity are inherent only in freedom. [Index]: A comprehensive alphabetical index for the book 'How Can Europe Survive', covering key terms, organizations, and individuals mentioned throughout the text.