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 again from the bank until the pressure became too great, when a new loan of 250 millions sterling, already sanctioned, would be issued. The operations of the war and mortgage banks would then again take place; new loans would be created, new securities and new properties pledged, and when this loan was taken up the Reichsbank would a second time be paid off. This would carry on the war up to June, when no doubt the Reichsbank would once more be required to provide funds. New loans would be issued and further properties pledged, so we might expect an evil day by and by, when this huge pledging would have to be paid off, and heavy depreciations must inevitably result.

One might well ask the question. How often could this operation be repeated? The cost of the war to Germany was somewhere about two millions per day, so that by the end of twelve months there will have been a drain on the people, either of liquid resources or securities, properties, or produce, amounting to over 700 million sterling.

Germany has a population of about 70 millions of people to be fed, clothed, and largely provided with employment. In 1913 imports into Germany amounted to about 535 millions sterling, and of this 228 millions came from the Allies and their Colonies. The war reduced Germany's imports at one stroke to about 307 millions sterling. A considerable amount of these imports consisted of food products, a large proportion of which came from the Allies. Having regard to the control which the Allies have over the seas, and further to the fact that the Allies' ships as well as German ships are no longer available for the carrying of freight to Germany, one may ask whether the whole of this amount of 307 millions might still find its way into Germany, always remembering that German importers will be prepared to offer greatly enhanced prices to secure what is absolutely necessary for them. For example, it is alleged that cotton, which costs from 6-8 cents per lb. in America, is being sold at from 18-20 cents per lb. in German ports. These imports must be paid for, either by exports, securities, or gold. It is feared that securities held by Germans may find their way on to the London Stock Exchange, but restrictions of such a nature have been placed on transactions there that this will be prevented, and it would appear that restrictions have also been placed on other Stock Exchanges, although perhaps not to so great an extent as in London. Assuming, therefore, that