The money situation is bad. All small change has disappeared in the general panic, and none of it has dared show its head during the past few days. The next thing done by panicky people was to pass round word that the Government bank notes were no good and would not be honoured. Lots of shops are refusing to accept bank notes, and few places can make any change. The police are lined up outside the banks keeping people in line. People in general are frantic with fear, and are trampling each other in the rush to get money out of the banks before the crash that probably will not come. Travelers who came here with pockets bulging with express checks and bank notes are unable to get a cent of real money, and nobody shows any enthusiasm over American paper. I have a few bank notes left, and this evening when I went into a restaurant I have patronised ever since my arrival the head waiter refused to change a note for me, and I finally had to leave it and take credit against future meals to be eaten there. We may have our troubles when our small store is gone, but probably the situation will improve and I refuse to worry. And some of our compatriots don't understand why the Legation does not have a cellar full of hard money to finance them through their stay in Europe. Communications, with such parts of the world as we still speak to, are getting very difficult on account of mobilisation, the military having right of way. This morning's Paris papers have not come in this evening, and there are no promises as to when we shall see them. The news in the local papers is scarce and doubtful, and I hope for a word from Paris. Word has just come in that the Government has seized the supplies of bread, rice, and beans, and will fix prices for the present. That is a sensible and steadying thing, and should have a good effect. Nobody seems to remember that a few days ago Serbia was playing a star role in this affair. She seems to have faded away behind the scenes. A few days ago, Mexico loomed large in the papers and now we have forgotten that she ever existed. Albania supplied a lot of table talk, and now we think about as much about her and her troubles as we do about Thibet.