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290 these rent-charges had to be paid; and while this incumbrance was an unbearable burden on the national economy, the lowness of the rate of exchange caused every fresh issue of bonds to bring in less capital proceeds to the Treasury. Still more: the economic crisis in the Grand Duchy had the effect of making foreign creditors demand payments at an exceptionally early date. This again lowered the rate of exchange and resulted in an increased flow of gold out of the country, and bank-smashes were daily occurrences in the business world.

In a word: our credit was shattered, our paper stood far below its nominal value; and though the Landtag might perhaps have preferred to vote a new loan to voting new taxes, the conditions which would have been imposed upon the country were such that the negotiation seemed difficult, if not impossible. For on the top of everything else came this unpleasant factor, that the people were at that moment suffering from the burden of that general economical disorder, that appreciation in the price of gold, which is still vivid in everybody's memory.

What was to be done to get safe to land? Whither turn to appease the hunger for gold which was devouring us? The disposal of the then unproductive silver-mines and the application of the proceeds to the payment of the debts at high interest was discussed at length. Yet, as matters stood, the sale could not help turning out disadvantageously. Further, not only would the State lose altogether the capital sunk in the mines, but would relinquish its prospect of a return which might perhaps sooner or later materialize. Finally, buyers did not grow on every bush. For one moment—a moment of psychical despondency—the sale of the national forests even was mooted. But it must be said that there was still sense enough in the country to prevent our woods being surrendered to private industry.

To complete the picture: still further rumours of sales