For three months about four-fifths of the army's needs were supplied by the conquered country. Even now, although the exhausted sources in the land occupied by us are beginning to yield less abundantly, the conquered territory is still supplying two-thirds of the needs of the German Army in the west. Because of this, for the last four months the German Empire has saved an average of 3,500,000 to 4,000,000 marks a day. This profit which the Germans have secured by their victory is very greatly increased by another means. That is the economic war which, in accordance with the rules of international law, is being carried on against the conquered land by the exhaustion of the goods which belong to the State, which are being carried to Germany from Belgium and Northern France. These are in enormous quantities and consist of war booty, fortress supplies, grain, wool, metal, expensive hardwood, and other things, not including all private property which cannot be requisitioned. In case of necessity this private property will, of course, be secured to increase the German supply, but it will also be paid for at its full value. What Germany saves and gains by this economic war, carried on in a businesslike way, can be reckoned at a further 6,000,000 to 7,000,000 marks a day. Thus the entire profit which the German Empire has made behind its western front since the beginning of the war can be estimated at about 2,000,000,000 marks. For Germany this is a tremendous victory through the sparing and increase in her economic power; for the enemy it is a crushing defeat through the exhaustion of all of the auxiliary financial sources in those portions of his territory which have been lost to us. Of the branches and management of this economic war I shall have more to say. Then people will learn to banish to the lumber room of the past the catch phrase about "the unpractical German." A German officer of high rank at St. Quentin characterized this happy change which has taken place in our favor in these half-serious, half-humorous words: "It is extraordinary how much a man learns! Although in reality I am an officer of the Potsdam Guard, now I am in the wool and lumber business. And successful, too!" Governor General von Bissing's testimony on this subject, as recorded in his "Testament," will be found in full in CURRENT HISTORY MAGAZINE for February, 1918, pp. 330-38. Among the passages from it quoted in the pamphlet here under review is this: The advantages which we have been able during the present war to obtain from Belgian industry, by the removal of machinery and so on, are as important as the disadvantages which our enemies have suffered through the lack of their fighting strength. LANGHORNE'S DISPATCH