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 into throwing them on the market and so putting the exchange against Germany and making it more difficult for her to make payments. Her first payment was handled by the Reparations Commission with a clumsiness that was amazing and upset the exchange markets much more than was necessary or healthy. The depreciation of the mark, due to these external causes, reduced its purchasing power at home and so made the task of the Government in making both ends meet all the more difficult, because expenses went up faster than the proceeds of taxes imposed before the fall, and so the Government, which was perhaps pleased to see its efforts to pay thus defeated, printed more and more notes to fill the gap and so made matters worse, and the vicious circle spun round faster and faster and continued to do so till its pace was still more quickened by the Ruhr occupation and passive resistance. And now some people say that it is all France's fault!

To the voice of the German sympathizers who said that Germany could not possibly pay, was added that of those who maintained that Germany could only pay by damaging our trade. This view was put by Mr. McKenna with all that lucidity and force for which his utterances are so justly noted. In a paper read