Bernard M. Baruch to Woodrow Wilson

A just and continuing peace must include a just and equal access to the raw materials and manufacturing facilities of the world, thus eliminating preferential tariffs. No nation (including neutrals) must be permitted to enter into economic alliance to the detriment of any other nation or nations. This should be a part of the treaty of peace, of just as much importance as the determination of territorial and ethnological lines, and must be guaranteed the same.

Any court or league of nations which decides the questions of territorial boundaries must define and enforce this policy of economic equality of opportunity. If a scheme of this kind is not carried out, the resulting industrial inequalities will cause dissatisfaction and revolution within countries or force wars to relieve intolerable conditions.

This agreement should cover both dependent colonies like India, Phillipine Islands, Porto Rico; self-governing colonies like Canada, Australia, etc.; and the so-called spheres of influence.

Each and every nation (including neutrals) shall have access on the same terms to the raw materials and manufactured goods of all other nations.

This will not prevent the making of tariffs so long as the tariff affects the export to or import from other nations equally. It is not contemplated by this that nations shall always be equal, but that they shall receive equal opportunity. It is no more possible to keep nations upon an equality than it is to keep individuals upon an equality, except the equality of equal opportunity. The individual within the nation will thus have an opportunity through ingenuity and application to work out his own salvation, only under such restrictions as may be imposed upon him by the nation of which he is a part.

With these principles determined upon, (and I cannot see how right-thinking people can think otherwise), there will be no difficulty in setting up the machinery to carry them into effect. The concurrence of Great Britain, France, Italy and the United States would immediately make them operative, and a plan of operation can be worked out. Acceptance at the Peace Table will naturally follow.Arrangements for the Period of Transition.

The Germans have removed from the factories of Northern France and Belgium, and Poland (and it is probable also Roumania and Servia), practically all raw materials and all manufacturing facilities.

The objects of the war will not have been achieved if the devastated countries are not rehabilitated and as far as practicable, restored to the condition previously existing. Otherwise a nation like Belgium, which was a factor in the competitive markets of the world for manufactured products, could never regain its place in the trade of the world, except after years of unequal struggle.

There should be immediately gathered a list of the things which are necessary to rehabilitate the countries affected, and each nation should guarantee to do its determined share towards replacing immediately these things at some set or guaranteed price, at some set or guaranteed time, not exceeding two years after the war. Pursuant to your request, I have asked this information from Roumania, Servia and Belgium.

Yours very truly,

BMB-MS



Honorable Woodrow Wilson,
White House,
Washington, D. C.