fourteen and a half per cent., but the Elector reduced it so as to relieve his poor people. In 1772 England paid 900,000 thalers as compensation, to be divided between the Elector and the country, but the former yielded any claim to it and added 600,000 thalers out of the moneys paid him as subsidy, so that the treasury was enabled to pay off 1,500,000 of the debt. Later there was paid a further sum of 2,220,000 thalers, and still later 672,000 thalers for the people and places on furnishing official proof of special losses. This led to a special mission to England and a long discussion with the money-saving English treasury over the claims for compensation which ran up to millions. The greater part was absolutely rejected, much reduced to a six per cent. basis, and Schlieffen at last forced to accept L41,820 for the actual outlay of 300,000 thalers for hospital expenses. No doubt the foundation of the large savings of the Hessian state treasury and of the Elector was the money obtained as subsidy for the American war. The Elector raised his country from poverty by using this money for the improvement of his capital and its great neighboring palace, for royal roads, for parks and open places, for churches, museums, lyceums, and seminaries, theatres, city halls, hospitals, art galleries, and schools, medical colleges, infants' and orphans' homes, libraries, and the two universities, Marburg and Rinteln, for opera and chapel. The source of all this expenditure was of course the English subsidies. The charge that the Elector had laid aside 56,000,000 as his private fortune is clearly disproved by the fact that in 1831 the whole estate of the Elector amounted to only 14,000,000 to 16,000,000, although Kapp says the Elector Frederick left 60,000,000, mostly subsidy money, but partly profit on lotteries, yet the official records show that during the fourteen years of the lottery the whole profit was only 93,000 thalers. The accounts show that in 1775 the treasury had to its credit in all 4,549,925 thalers, much in doubtful claims growing out of the earlier wars, and, in 1785, at the death of Elector Frederick, it had 12,473,000 thalers. In other words, after the Seven Years' War this little country of 300,000 people earned an average of 1,000,000 thalers a year by subsidies, and by the American war it was enabled to save 18,000,000, out of which much was spent in public improvements. England was very slow to admit its liability for the losses inflicted on Hesse as its ally in the Seven Years' War, but it soon learned to value and pay generously for its help in supplying a fine body of troops for its American war.