In what condition are the finances of Germany? In this field our opponents will be obliged to change their views. In 1912 Germany's national debt was about 14 marks per capita lower than England's. The public debt of France per capita was far more than double that of Germany. Germany, however, has large national assets which offset its liabilities. For example, the stocks of the Prussian railways alone exceed by far the aggregate amount of the Prussian debt, the income of the railways alone is essentially greater than the amount which the interest and amortization of the entire State debt demand. The war, which, according to the French conception, was destined to bring about the financial and commercial ruin of Germany, has brought forth the astonishing result that the famous French money market was the first to fail in this crisis. As early as July 25, before the rejection of the Austrian ultimatum by Servia had been made known, the offer of 3 per cent. redeemable French notes to the French Exchange was so great that the Chambre Syndicale des Agents de Change in the interest of the public prohibited the quotation of a lower rate than 78 per cent., while bids of 74 per cent. had already been submitted. Sale in blank was absolutely forbidden, and in the coulisse business was at a standstill. A few days later the July liquidation, in the official market as well as in the coulisse, was postponed until the end of August, which action proved the necessity of a period of grace. On July 31 the French savings banks, at the command of the Government, suspended daily payments and paid out sums to the amount of 50 francs, fourteen days' notice being necessary. The London money market, too, has hardly stood the war test. On July 30 the Bank of England was obliged to raise its rate of discount from 3 to 4 per cent., several days later to 8 per cent., and again after a few days to the incredible rate of 10 per cent. In contrast to this the President of the German Reichsbank was able, on the 1st of August, to declare that the directorate, because of the strength of the Reichsbank and the solid constitution of the German money market, did not consider it necessary to follow England's example. The German Reichsbank has therefore not exceeded the rate of 6 per cent. Worse yet was the fact that England, on Aug. 2, was obliged to require grace on exchange, and France, on Aug. 3, grace on its accounts-current and Lombard loans. Although along with England and France, also Russia, Austria, Italy, Belgium, and other nations required temporary credit, Germany to date has not deemed it necessary to ask for time in meeting its obligations. Savings banks, other banks and financial institutions are meeting all demands without restriction. The fact that the English money market, which up to the present time has been considered the financial centre of international trade, has failed, will bring many a serious thought to all commercial men interested in the world market.