"The Loan: good for 100 marks!" Look at him! He is the favoured of the Earth, lives in Germany, where Kultur is peerless, and education complete (even tho' the man may become a martyr of method). War comes! and he is seen, as an almond tree in blossom his years tell, when lo! a War Loan is raised with real Helfferichian candour, and Michael has just stepped out of the Darlehnskasse, at Oberwesel-on-the-Rhine, or other seat of Kultur and War Loan finance. Are visions about? said an American humorist now gone to the Shades; and Michael, Loan note in hand, eyes reversed, after a visit to two or three offices, wants to know, and wonders whether this note can be regarded as "hab und gut," and if so, good for how much? Is it a wonder that an artist in a Neutral Country should depict German affairs as in this condition, and business done in this manner? Michael is puzzled; and in the language of the Old Kent Road, "'e dunno where 'e are!" He is puzzled, and not without cause.

All who have followed Germany's financing of the War share Michael's perplexity. Brag is a good dog: but it does not do as a foundation for credit. Gold at Spandau was trumpeted for years as a "war chest"; but when the "best laid schemes o' mice and men gang aft agley," especially when a war does not end, as it should, after a jolly march to Paris in six weeks, through a violated and plundered Belgium, then comes the rub—and the paper which puzzles Michael. A German, possibly Dr. Helfferich, the German Finance Minister, may believe, and some do believe, that it does not matter how much "paper," in currency notes, a State, or even a Bank, may issue. The more experienced commercial and banking concerns of the world insist upon a visible material, as well as the personal security, to which the German is prone. The round-about method of issuing German War Loans unquestionably puzzles Michael; but will not impose on the world outside.

Let it be marked also, that German credit methods have been, in part, the proximate cause of this War; a system of credit-trading may last for some years only to threaten disaster and general ruin. Now, it is "neck or nothing"; Michael goes the round of the Loan offices, and behold him! Germany herself fears a crash in credit, and even the German Michael feels that it is impending. Already the mark exchanges over 30 below par.

W. M. J. WILLIAMS.