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37. aJ. E. C. pplied (1875), quoted by J. Jewkes in Public and Private Enterprise (1965), p. 3. 32 THE FRAMEWORK OF EOONOMIO AOTIVITY carried out only by privileged individuals; in some cases only by the state itself. In contrast to this the system of economic freedom, with its 'belief in the desirability of freedom of choice for the consumer and beliefin the effectiveness in meeting this choice, or freedom on the part of producers'l came as revolutionary doctrine. Such beliefs were often considered inappropriate outside the United Kingdom as in many cases industry had to be stimulated rather than allowed to develop.

India - while in Europe, the collapse of the Austrian Empire had led to the creation of a number of new nations, each wishing to be economically independent and showing their determination to be so by erecting high tariffs round their economies. Austria found herself, therefore, with an economy grossly unsuited to the demands now placed upon it. At the same time Germany, formerly the most powerful of the European economies, was, in the early years after the war, in a state ofeconomic and financial collapse under the strain of reparations and the attempts to obtain them.

By the end of 1923 the old mark had become worthless, and a new one, the rentenmark, was issued in its place. Despite Germany's evident economic and financial weakness, there was still no question of abandoning reparations altogether. Apart from motives of revenge and the desire to keep Germany economically weak, there was the more pressing question for the Allies of their own debts; all countries were in debt to the United States, and all except for the United States were in debt to the United Kingdom.

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