19. Bette M. Epstein, New Jersey State Archives, to author.
20. Irving Fisher, American Labor Legislation Review, p. 10.
21. MacKenzie, Diary of Beatrice Webb, vol. 3, 324 (November 17, 1918).
22. Ibid., 318 (November 11, 1918).
23. Ray Monk, Bertrand Russell: The Spirit of Solitude 1872–1921, Vol. I (New York: Simon & Schuster, 1996).
VI: THE LAST DAYS OF MANKIND: SCHUMPETER IN VIENNA
1. Joseph A. Schumpeter, Politische Reden [Political Speeches], Wolfgang F. Stolper and Christian Seidl, eds. (Tubingen: J.C.B. Mohr, 1992).
2. Francis Oppenheimer, The Stranger Within: Autobiographical Pages (London: Faber, 1960).
3. Norman and Jeanne MacKenzie, eds., The Diary of Beatrice Webb, vol. 3, 1905–1924 (Cambridge, Mass.: Harvard University Press, 1982–84), November 11, 1918.
4. Sigmund Freud, quoted in Peter Gay, Freud: A Life of Our Time (New York: W. W. Norton and Co., 1988), 382.
5. F. L. Carsten, Revolution in Central Europe: 1918–1919 (Aldershot, UK: Wildwood House, 1988), 41.
6. Karl Kraus, The Last Days of Mankind: A Tragedy in Five Acts (New York: Unger, 2000).
7. Edmund von Glaise-Horstenau, “The Armistice of Villa Giusti 1918,” in The Collapse of the Austro-Hungarian Empire (London: J. M. Dent and Sons, 1930).
8. Sigmund Freud, quoted in Gay, Freud.
9. F. O. Lindley, British high commissioner, quoted in Carsten, Revolution in Central Europe, 11–12.
10. Friedrich Wieser, “The Fight Against Famine in Austria,” in Fight the Famine Council, International Economic Conference (London: Swarthmore Press, 1920), 53.
11. The Memoirs of Herbert Hoover, vol. 1, Years of Adventure 1874–1920 (New York: Macmillan, 1951), 392.
12. Ibid.
13. Stefan Zweig, The World of Yesterday: An Autobiography (Lincoln: University of Nebraska Press, 1984), 289.
14. Ludwig von Mises, “The Austro-Hungarian Empire,” Encyclopedia Britannica, 1921.
15. Quoted in Gay, Freud, 378.
16. Felix Salten, Florian, the Emperor’s Horse (New York: Aires Scribner Sons, 1934).
17. “Austria Willing to Pawn Anything,” New York Times, January 22, 1920.
18. Carsten, Revolution in Central Europe, 37.
19. Joseph Schumpeter, Die Arbeiter Zeitung, November 22, 1919, in Dokumentation zur Oesterreichischen Zeitgeschichte, 1918–1928. [Documentation of Austrian History, 1918–1928], eds. Christine Klusacek, Kurt Stimmer (Vienna: Jugend und Volk, 1984).
20. Sir T. Montgomery-Cuninghame, Dusty Measure (London: John Murray, 1939), 309.
21. SHB to ASB, December 30, 1918, quoted in William Beveridge, The Power and Influence, 153.
22. Karl Kautsky, The Social Revolution and On the Morrow of the Social Revolution (London: Twentieth Century Press, 1907), part 2, 1.
23. Felix Somary, Erinnerungen aus Meinem Leben [Memories from My Life] (Zurich: Manesse Verlag, 1955), 171.
24. Eduard Bernstein
25. Otto Bauer, The Austrian Revolution (London: Parsons, 1925).
26. Albert Einstein to Hedwig and Max Born, January 15, 1919, Albert Einstein, Collected Papers, vol. 4.
27. Joseph Schumpeter, quoted in Eduard Marz, Joseph A. Schumpeter: Forscher, Lehrer und Politiker [Researcher, Teacher, and Politician] (Munchen: R. Oldenbourg, 1983).
28. Somary, Erinnerungen, 172.
29. Karl Corino, Robert Musil (Hamburg: Rowolt, 2003), 598.
30. Friedrich von Wieser, Tagebuch Gertrud Enderle-Burcel, Staatsarchiv Wien Nachlass Wieser in the Haus-, Hof- und Staatsarchiv Extracts in Seidl, Politische Reden, 10–12.
31. Wolfgang F. Stolper, Joseph Alois Schumpeter: The Public Life of a Private Man (Princeton, N.J.: Princeton University Press, 1994), 123.
32. Karl Kraus, Die Fackel, April 1919.
33. Joseph Schumpeter, Politische Reden.
34. Otto Bauer, The Austrian Revolution (London: Parsons, 1925).
35. Gabor Betony, Britain and Central Europe 1918–1933 (Oxford, UK: Clarendon Press, 1999), 10.
36. Joseph Schumpeter, “The Sociology of Imperialism,” in Richard Sweds, The Economics and Sociology of Capitalism (Princeton: Princeton University Press, 1991), 156–57.
37. Joseph Schumpeter, Politische Reden.
38. Joseph Schumpeter, Politische Reden.
39. David Lloyd George, “Fontainebleau Memorandum,” March 25, 1919, www.fullbooks.com/Peaceless-Europe2.html.
40. Winston Churchill, House of Commons, May 29, 1919, http://www.winstonchurchill.org; Randolph Spencer Churchill and Martin Gilbert, Winston S. Churchill, vol. 4, The Stricken World (New York: Houghton Mifflin, 1966), 308.
41. Bauer, The Austrian Revolution, 106.
42. The Memoirs of Herbert Hoover, vol. 1, Years of Adventure 1874–1920 (New York: Macmillan, 1951); Bauer, The Austrian Revolution, 103.
43. Hans Loewenfeld-Russ, Im Kampf Gegen den Hunger [In the Fight Against Hunger] (Munich: R. Oldenburg, 1986).
44. T. Montgomery-Cuninghame, Dusty Measure, (London: John Murray, 1939).
45. Ellis Ashmead-Bartlett, The Tragedy of Central Europe (London: Thornton Butterworth, 1924), 159.
46. Ibid.
47. Friedrich von Wieser, Tagebuch, Gertrud Enderle-Burcel, Staatsarchiv Wien Nachlass Wieser in the Haus-, Hof- und Staatsarchiv Extracts in Seidl, Politische Reden, pp. 10–12.
48. Eduard Marz, Austrian Banking and Financial Policy: Creditanstalt at a Turning Point, 1913–1923 (New York: St. Martin’s Press, 1984), 333.
49. “Entretien avec le Docteur Schumpeter,” De notre envoye spécial, Vienne, Mai, Le Temps, June 2, 1919, translated and quoted in W. F. Stolper, Joseph Alois Schumpter, The Public Life of a Private Man (Princeton: Princeton University Press, 1994), 219.
50. Bauer, The Austrian Revolution, 110.
51. Ibid., 257.
52. Schumpeter, Politische Reden.
53. Ibid.
54. Francis Oppenheimer to John Maynard Keynes, May 18, 1919, Kings College Archive.
55. Francis Oppenheimer, The Stranger Within: Autobiographical Pages (London: Faber, 1960), 369.
56. Bauer, The Austrian Revolution.
57. Ibid.
58. Joseph Schumpeter, Neue Freie Presse, June 24, 1919, in Klusacek et al., eds., Dokumentation.
59. Joseph Schumpeter, Neue Freie Presse, June 28, 1919. “Es ist nicht leicht ein Volk zu vernichten. Im allgemeinen ist es sogar unmöglich. Hier haben wir aber einen der seltenen Fälle for uns, wo es möglich ist.”
60. Friedrich Wieser, “The Fight Against Famine in Austria,” in Fight the Famine Council, International Economic Conference (London: Swarthmore Press, 1920), 53.
61. Quoted in Stolper, Joseph Alois Schumpeter.
62. Richard Kola, Rückblick ins Gestrige: Erlebtes und Empfundenes [Looking Back to Yesterday: Experiences and Perceptions] (Vienna: Rikola, 1922).
63. Schumpeter, Politische Reden.
64. Somary, Erinnerungen.
65. Richard Swedberg, Joseph A. Schumpeter, His Life and Work (Cambridge, UK: Polity Press, 1991).
66. Ibid., 144–45.
67. Friedrich von Wieser, Tagebuch, November 19, 1919: “Es scheint, dass Schumpeter in der Meinung aller Parteien und aller gebildeten Menschen völlig abgewirtschaftet hat. Wie mir Kelsen erzählte, auch unsere jüngeren Nationalökonomen, die ihn als ihren Führer betrachteten, sind von ihm abgekommen und geben ihn wissenschaftlich auf, es sei nichts mehr von ihm zu erwarten.”
68. Eduard Marz, “Joseph Schumpeter as Minister of Finance,” in Helmut Frisch, ed., Schumpeterian Economics (New York: Praeger, 1981).
VII: EUROPE IS DYING: KEYNES AT VERSAILLES
1. Frances Oppenheimer, The Stranger Within: Autobiographical Pages (London: Faber, 1960), 374.
2. Lord William Beveridge, Power and Influence (New York: Beechhurst Press, 1955), 149–50.
3. David Lloyd George to Woodrow Wilson, April 1919.
4. John Maynard Keynes to Vanessa B
ell, March 16, 1919, Keynes Papers, King’s College Archive.
5. Harold Nicolson, Peacemaking 1919: Being Reminiscences of the Paris Peace Conference (Boston: Houghton Mifflin, 1933), 44.
6. Ibid., 275–76.
7. David Lindsay, The Crawford Papers: The Journals of David Lindsay, Twenty-seventh Earl of Crawford and Tenth Earl of Balcarres (1871–1940), During the Years 1892 to 1940, April 9, 1919.
8. Robert Skidelsky, John Maynard Keynes, vol. 1, Hopes Betrayed (New York: Viking, 1986), 304.
9. John Maynard Keynes, “My Early Beliefs,” September 9, 1938, in Essays in Biography (London: MacMillan St. Martin’s Press for the Royal Economic Society, 1972), 436.
10. John Maynard Keynes to Lytton Strachey, November 23, 1905, quoted in Skidelsky, Keynes, vol. 1, 166.
11. John Maynard Keynes to Lytton Strachey, November 15, 1905, Skidelsky, 165.
12. “A Key for the Prurient: Keynes’s Loves, 1901–15,” Donald E. Moggridge, Maynard Keynes: An Economist’s Biography (London: Routledge, 1992), annex 1.
13. C. R. Fay, “The Undergraduate,” in Milo Keynes, ed., Essays on John Maynard Keynes (Cambridge: Cambridge University Press, 1975), 36.
14. Lionel Robbins, Autobiography of an Economist (London: Macmillan, 1971).
15. Winston Churchill to Clementine Churchill, Speaking for Themselves: The Personal Letters of Winston and Clementine Churchill, ed. Mary Soames, (London and New York: Doubleday, 1998).
16. Elizabeth Johnson, “Keynes’ Attitude Toward Compulsory Military Service,” Economic Journal 70, no. 277 (March 1960): 160–65.
17. David Lloyd George, Memoirs of the Peace Conference, vol. 1 (New Haven, Conn.: Yale University Press, 1939), 302.
18. William Shakespeare, A Midsummer Night’s Dream (New York: Palgrave, 2010).
19. Lloyd George, Memoirs of the Peace Conference, vol. 1, 302.
20. John Maynard Keynes to Florence Keynes, quoted in Skidelsky, Keynes, vol. 1, Hopes Betrayed, 353.
21. John Maynard Keynes to Florence Keynes, Keynes Papers, King’s College Archive.
22. Quoted in Macmillan, Paris 1919, 60.
23. John Maynard Keynes, “Dr. Melchior: A Defeated Enemy,” in Essays in Biography, 210.
24. Max Warburg, “Aus Meinem Aufzeichnungen” [From My Records], quoted in Collected Writings of John Maynard Keynes, vol. 16, Activities 1914–1919, The Treasury and Versailles (Cambridge: Cambridge University Press), 417.
25. Keynes, “Dr. Melchior,” 214.
26. Ibid., 216.
27. Ibid., 218.
28. Ibid., 221.
29. Ibid., 223.
30. George Allerdice Riddell, Lord Riddell’s Intimate Diary of the Peace Conference and After, 1918–1923 (New York: Reynal & Hitchcock, 1924), 30.
31. Keynes, “Dr. Melchior,” 231.
32. Thomas W. Lamont, “The Final Reparations Settlement,” Foreign Affairs, 1930.
33. Nicolson, Peacemaking 1919, 86.
34. Peter Rowland, David Lloyd George (London: Macmillan, 1975), 485–86.
35. Nicolson, Peacemaking 1919, 78.
36. Skidelsky, 367.
37. Jan Smuts, quoted in Skidelsky, Keynes, vol. 1, Hopes Betrayed, 373.
38. The Memoirs of Herbert Hoover, vol. 1, Years of Adventure 1874–1920 (New York: Macmillan, 1951), 461–62.
39. John Maynard Keynes to Florence Keynes, in Skidelsky, Keynes, vol. 1, Hopes Betrayed, 371.
40. John Maynard Keynes to Florence Keynes, Keynes Papers, King’s College Archive.
41. John Maynard Keynes, The Economic Consequences of the Peace (London: Macmillan and Co., 1920), 233 (note 1).
42. John Maynard Keynes to Duncan Grant, May 14, 1919.
43. Rowland, David Lloyd George, 480.
44. John Maynard Keynes to Austin Chamberlain, June 5, 1919.
45. Alec Cairncross, “Austin Robinson,” Economic Journal 104 (July, 1994): 903–15.
46. Ibid.
47. Jan Smuts, quoted in Skidelsky, Keynes, vol. 1, 373.
48. John Maynard Keynes, The Economic Consequences of the Peace (London: Macmillan, 1920).
49. Henry Wickham Steed, “A Critic of the Peace,” “The Candid Friend at Versailles,” “Comfort for Germany,” John Maynard Keynes: Critical Responses, ed. Charles Robert McCons (London: Taylor and Francis, 1998), 51–60.
50. Quoted in Niall Ferguson, Paper and Iron (Cambridge: Cambridge University Press, 1995), 206.
51. Keynes, “Dr. Melchior,” 234.
52. Keynes, The Economic Consequences of the Peace, 39.
53. Lytton Strachey to John Maynard Keynes, quoted in Michael Holroyd, Lytton Strachey (London: Heineman, 1978), 374.
54. Austin Chamberlain to Ida Chamberlain.
55. A. J. P. Taylor, The Origins of the Second World War (London: Penguin Books, 1964), 26.
56. Paul Mantoux, The Carthaginian Peace or the Economic Consequences of Mr. Keynes (Oxford: Oxford University Press, 1946).
57. Wickham Steed, “A Critic of the Peace,” “The Candid Friend at Versailles,” “Comfort for Germany,” John Maynard Keynes: Critical Responses (Charles Robert McCann, ed. (London: Taylor & Francis, 1998), 51–60.
58. Thorstein Veblen, “Review of J. M. Keynes’ The Economic Consequences of the Peace,” Political Science Quarterly 35 (1920): 467–72.
59. “Europe a Year Later,” New York Times, May 16, 1920.
60. “Solution of Europe’s Disorder, as Seen by Baruch,” New York Times, April 20, 1920.
61. Joseph A. Schumpeter, History of Economic Analysis (London: Allen & Unwin, 1954), 39.
VIII: THE JOYLESS STREET: SCHUMPETER AND HAYEK IN VIENNA
1. Joseph A. Schumpeter, The Theory of Economic Development (Oxford: Oxford University Press, 1961), 215.
2. Ludwig von Mises, “The Austro-Hungarian Empire,” Encyclopedia Britannica, 1921.
3. Schober, quoted in F. L. Carsten, The First Austrian Republic (Aldershot, UK: Wildwood House, 1986), 41.
4. Ibid., 45.
5. Peter Gay, Freud: A Life of Our Time (New York: W. W. Norton and Co., 1988), 386.
6. Ibid., 382.
7. Anna Eisenmenger, Blockade: The Diary of an Austrian Middle-Class Woman, 1914–1924 (London: Constable Publishers, 1932), 149.
8. Pierre Hamp, La Peine des Hommes: Les Chercheurs D’Or [The Pain of Men: The Seekers of Gold], 1920.
9. Quoted in Carsten, The First Austrian Republic, 13.
10. Charles A. Gulik, Austria from Habsburg to Hitler, vol. 1 (Berkeley: University of California Press, 1948), 248.
11. Eisenmenger, Blockade, 149.
12. Ibid.
13. C. A. Macartney, The Social Revolution in Austria (Cambridge, UK: Cambridge University Press, 1926), 215.
14. Alois Mosser and Alice Teichova, “Investment Behavior of Joint Stock Companies,” in The Role of Banks in the Interwar Economy, Harold James, Hekan Lindgren, Alice Teichova, eds. (Cambridge, UK: Cambridge University Press, 2002), 127.
15. Quoted in Richard Swedberg, Joseph A. Schumpeter: His Life and Work (Cambridge, UK: Polity Press, 1991), 68.
16. Quoted in Wolfgang F. Stolper, Joseph Alois Schumpeter: The Public Life of a Private Man (Princeton, N.J.: Princeton University Press, 1994), 3.
17. Charles A. Gulik, Austria from Hapsburg to Hitler, vol. 1 (Berkeley: University of California Press, 1948), 251.
18. Fritz Machlup, Tribute to Mises, 1881–1973 (Chislehurst, UK: Quadrangle, 1974).
19. “Ships in Fog,” a fragment of a novel Schumpeter started in the 1930s, in Swedberg, Joseph A. Schumpeter, appendix 2.
20. Thomas K. McCraw, Prophet of Innovation: Joseph Schumpeter and Creative Destruction (Cambridge, Mass.: Harvard University Press, 2007), 140.
21. Quoted in Robert Loring Allen, Opening Doors: The Life and Work of Joseph A. Schumpeter, vol. 1, Europe (New Brunswick, N.J., and London: Transaction Publishers, 1991), 274.
22. Israel Kirzner, “Austrian Economics,” lecture at Foundation for Economic Educati
on, July 26, 2004.
23. Joseph A. Schumpeter, Business Cycles: A Theoretical, Historical and Statistical Analysis of the Capitalist Process (New York: McGraw-Hill Company, 1939).
24. Joseph A. Schumpeter, The Theory of Economic Development: An Inquiry into Profits, Capital, Credit, Interest and the Business Cycle (New Brunswick, N.J.: Transaction Publishers, 1934).
25. Ibid.
26. Ibid., 245.
27. Joseph A. Schumpeter, Essays on Entrepreneurs, Innovations, Business Cycles, and The Evolution of Capitalism, ed. Richard Clemence (New York: Transaction Publishers, 1951), 71–72.
28. Friedrich A. Hayek, Hayek on Hayek: An Autobiographical Dialogue, ed. Stephen Kresge (Chicago: University of Chicago Press, 1984).
29. Fritz Machlup to Barbara Chernow, June 12, 1978.
30. Gulik, Austria from Hapsburg to Hitler, vol. 1, 134–35.
31. Max Weber, “Der Sozialismus” (1918), in Gesammelte Aufsätze zur Soziologie, Economy and Society
32. Otto Bauer, “Der Weg zum Sozialismus” [The Way to Socialism], 1921, serialized in Arbeiter Zeitung, January 1919.
33. Hayek on Hayek, 54–59.
34. Monatsberichte, April and October 1929, pp. 69 and 182. Text and translation provided to the author by Hansjorg Klausinger.
IX: IMMATERIAL DEVICES OF THE MIND: KEYNES AND FISHER IN THE 1920S
1. Irving Fisher, et al, Report on National Vitality Bulletin 30 of the Committee of One Hundred on Public Health (Washington, D.C.: Government Printing Office, 1908), 1.
2. Irving Fisher, “Unstable Dollar and the So-called Business Cycle,” Journal of the American Statistical Association, vol. 20, no. 150 (June, 1925), 179–202.
3. John Maynard Keynes, quoted in Robert Skidelsky, John Maynard Keynes, vol. 2, The Economist as Savior, 1920–1937 (London: Macmillan, 1992).
4. Ibid.
5. Peter Clarke, Keynes; The Rise, Fall, and Return of the 20th Century’s Most Influential Economist (New York: Bloomsbury, 2009).
6. John Maynard Keynes, “Alternative Theories of the Rate of Interest,” Economic Journal 47 (June 1937).
7. John Maynard Keynes, “How Far Are Bankers at Fault for Depressions?,” 1913, quoted in Angel N. Rugina, “A Monetary and Economic Dialogue with Lord Keynes,” International Journal of Social Economics 28, vol. 1, No. 2, 200, www.emeraldinsight.com/journals.htm?articleid=1453937&show=html.