poisons as such that they are accepted as belonging to the national being; or they are merely tolerated as a necessary evil, so that drastic attempts to locate those alien germs are not held to be necessary.

During the long period of peace prior to the last war certain evils were apparent here and there although, with one or two exceptions, very little effort was made to discover their origin. Here again these exceptions were first and foremost those phenomena in the economic life of the nation which were more apparent to the individual than the evil conditions existing in a good many other spheres.

There were many signs of decay which ought to have been given serious thought. As far as economics were concerned, the following may be said:--

The amazing increase of population in Germany before the war brought the question of providing daily bread into a more and more prominent position in all spheres of political and economic thought and action. But unfortunately those responsible could not make up their minds to arrive at the only correct solution and preferred to reach their objective by cheaper methods. Repudiation of the idea of acquiring fresh territory and the substitution for it of the mad desire for the commercial conquest of the world was bound to lead eventually to unlimited and injurious industrialization.

The first and most fatal result brought about in this way was the weakening of the agricultural classes, whose decline was proportionate to the increase in the proletariat of the urban areas, until finally the equilibrium was completely upset.

The big barrier dividing rich and poor now became apparent. Luxury and poverty lived so close to each other that the consequences were bound to be deplorable. Want and frequent unemployment began to play havoc with the people and left discontent and embitterment behind them. The result of this was to divide the population into political classes. Discontent increased in spite of commercial prosperity. Matters finally reached that stage which brought about the general conviction that 'things cannot go on as they are', although no one seemed able to visualize what was really going to happen.

These were typical and visible signs of the depths which the prevailing discontent had reached. Far worse than these, however, were other consequences which became apparent as a result of the industrialization of the nation.

In proportion to the extent that commerce assumed definite control of the State, money became more and more of a God whom all had to serve and bow down to. Heavenly Gods became more and more old-fashioned and were laid away in the corners to make room for the worship of mammon. And thus began a period of utter degeneration which became specially pernicious because it set in at a time when the nation was more than ever in need of an exalted idea, for a critical hour was threatening. Germany should have been prepared to protect with the sword her efforts to win her own daily bread in a peaceful way.

Unfortunately, the predominance of money received support and sanction in the very quarter which ought to have been opposed to it. His Majesty, the Kaiser, made a mistake when he raised representatives of the new finance capital to the ranks of the nobility. Admittedly, it may be offered as an excuse that even Bismarck failed to realize the threatening danger in this respect. In practice, however, all ideal virtues became secondary considerations to those of money, for it was clear that having once taken this road, the nobility of the sword would very soon rank second to that of finance.

Financial operations succeed easier than war operations. Hence it was no longer any great attraction for a true hero or even a statesman to be brought into touch with the nearest Jew banker. Real merit was not interested in receiving cheap decorations and therefore declined them with thanks. But from the standpoint of good breeding such a development was deeply regrettable. The nobility began to lose more and more of the racial qualities that were a condition of its very existence, with the result that in many cases the term 'plebeian' would have been more appropriate.

A serious state of economic disruption was being brought about by the slow