Hubris

The Other Date That Will Live in Infamy

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Not the famous date, December 7, 1941. But another, July 30, 1914—one almost unknown but only slightly less momentous. That’s the day that Germany stops trying to cajole its ally, Austria, into adopting a more conciliatory stance toward Serbia. It is the last day to avoid World War I.” Sanford Rose

Dolors & Sense

By Sanford Rose

Kaiser Wilhelm.
Kaiser Wilhelm.

Sanford RoseKISSIMMEE Florida—(Weekly Hubris)—9/2/2013—Not the famous date, December 7, 1941. But another, July 30, 1914—one almost unknown but only slightly less momentous.

That’s the day that Germany stops trying to cajole its ally, Austria, into adopting a more conciliatory stance toward Serbia. It is the last day to avoid World War I.

Not that Germany spends a lot of time in the business of urging conciliation. It spends only one day in that activity. It starts on July 29 and stops on July 30.

If all this sounds insane, it is, and the insanity is traceable to Kaiser Wilhelm, who is almost certainly bipolar, or, as it was described in his time, “maniacally depressed.”

Let’s briefly recapitulate:

On June 28, the Austrian archduke gets gunned down by Bosnian terrorists operating under the orders of the Serbian “Black Hand” and funded, incidentally, with Russian money.

The archduke is a friend of the kaiser, one of his few friends. The kaiser becomes enraged, rebuking his ambassador to Austria for urging the Austrians to be cautious in their reaction. No caution for him; he advocates rapid and draconian measures.

The Austrians, who cannot do anything rapidly, in part because they have to get the support of the Hungarians (the other half of the Dual Monarchy), wait until July 23 to send Serbia an ultimatum asking, among other things, for the right to participate in the investigation of, or even perhaps in the judicial proceedings against, the Serbian organizers of the assassination plot and of other anti-Austrian activities. Austria demands “integral” Serbian acceptance of the ultimatum.

Serbia asks Russia whether it should yield. Russia says: “No, we’ll protect you.”

Serbia yields on most but not all of the points in the ultimatum.

Austria severs diplomatic relations.

Russia starts preparing for war against Austria.

France, which is Russia’s ally, affirms that alliance.

Britain, which is France’s ally (although Britain’s leaders claim disingenuously that there is only an entente, not a pact), starts dropping hints that if France goes to war to support Russia, it will go to war to support France.

Suddenly, the kaiser, faced with the danger of a war against Russia, France, and Britain, and supported only by a militarily unreliable Austria, does an abrupt volte-face. He counsels moderation. In answer to an appeal from the Russian tsar that he mediate the dispute, he finds a settlement formula that would be agreeable to Britain and urges Austrian acceptance.

That’s on July 29. Then the kaiser gets a last-ditch telegram from the Russian tsar begging him to do something, lest war measures “agreed upon five days ago” go into effect.

The kaiser goes apoplectic, charging that the duplicitous tsar was mobilizing for days while at the same time urging his mediation.

Under such circumstances, says the huffy kaiser, he can’t continue mediating and urging restraint on the Austrians.

Thus an effort to make the Austrians compromise their differences with Serbia, which is prerequisite to halting Russian war preparations, abruptly stops. It starts late in the day on July 29. It ends in the afternoon of July 30. On August 1, Germany mobilizes.

“Whom the Gods would destroy . . . .”

Sanford Rose, of New Jersey and Florida, served as Associate Editor of Fortune Magazine from 1968 till 1972; Vice President of Chase Manhattan Bank in 1972; Senior Editor of Fortune between 1972 and 1979; and Associate Editor, Financial Editor and Senior Columnist of American Banker newspaper between 1979 and 1991. From 1991 till 2001, Rose worked as a consultant in the banking industry and a professional ghost writer in the field of finance. He has also taught as an adjunct professor of banking at Columbia University and an adjunct instructor of economics at New York University. He states that he left gainful employment in 2001 to concentrate on gain-less investing. (A lifelong photo-phobe, Rose also claims that the head shot accompanying his Weekly Hubris columns is not his own, but belongs, instead, to a skilled woodworker residing in South Carolina.)

5 Comments

  • Tim Bayer

    Sanford:

    I have always appreciated your succinct writing style. You grab onto complicated concepts; Banking, mortgages, medical discussions, economics and in your recent posts, the events surrounding World War, and break them down into concise chunks suitable for general consumption. Well done! Please keep up the fine complicated-to-understandable-language conversions.

    I, for one, appreciate the translations.

  • Alan Ichiyasu

    HI SANFORD:

    AND THAT WHOLE PEARL HARBOR THING WAS ABOUT THE USA CUTTING OFF OIL EXPORT TO THE JAPANESE. THE 3RD R, WELL AS AN OBSERVER, I WOULD SAY HE GOT THE ECONOMICS OF GERMANY ON TRACK, REGARDLESS OF METHOD.

    I’M IN THE BOX NOW!!!

    COMMODITIES, IT’S ALL ABOUT SUPPLY & DEMAND OF SOMETHING WHETHER SPIRITUAL OR DEUTSCHE MARKS.

    YOURS,

    ALAN

  • Danny M Reed

    Greetings Sanford Rose Sir,

    I have really believed for many years that if accurate historical details about the Great War and surrounding forces that contributed to the first World War in our history can be examined thoroughly, it could manifest profound answers to what has been happening ever since that time. It is said WWII was a continuation of the Great War. With the physical passing of that generation of people that lived it, I genuinely feel it is imperative that what you are publishing here be preserved.

  • S. Rose

    You’re quite right. WWII was caused by WWI in two senses: First, because revanchism, which was a French attribute before WWI, became a German attribute after Versailles. And, second, because WWI, though not primarily a racist war, had undercurrents of racism–Germandom vs. Slavdom–which, after Germany’s defeat in WWI, could be, and indeed were, fully exploited by Hitler.
    There is also a close link between what happened then and what is happening now. The causal chain: defeat in WWI led to Hitlerism, which led to WWII, which led to the Holocaust, which led to the demand for a Jewish homeland, which led to Israel, which led to the Arab-Isreali conflict, which led to terrorist violence in the Mideast, exported whenever possible to other countries.