Writing about the ways of making peace, Brad DeLong describes “the [1944-45] debate between [Secretary of the Treasury Henry] Morgenthau and [General George] Marshall that was carried on–largely below the surface, largely without explicit confrontation” over the fate of postwar Germany and notes “The State and Defense positions win entirely and utterly and completely over the Treasury-based Morgenthau Plan. We get the Marshall Plan instead. I am still not sure why.” Morgenthau, you will remember, wanted – in Winston Churchill’s word – the “pastoralization” of Germany.
I think there are two reasons for Morgenthau’s failure. First, though, I disagree with Brad: there was not a conflict between Morgenthau and Marshall, above or below the surface. The conflict was between Morgenthau and everybody else. As John Morton Blum writes, by the end of January 1945, Morgenthau “had yielded in his views toward Germany neither to his fellow New Dealers, nor to his colleagues in the Cabinet, nor to the arguments of his subordinates. So also, he had conceded nothing to the objections of Churchill, Eden, and Sir John Anderson. Nor was he moved by Russian plans.” That’s a lot of different people not to yield to; almost nobody wanted the Morgenthau plan except Morgenthau. Not even the man whom Brad – I think not 100% seriously – calls a “Marxist,” Harry Dexter White; White wanted internationalization of the Ruhr and its industrial production used to pay reparations. [click to continue…]