Herr von Knobelsdorff was by no means satisfied to get a few of Klaus Heinrich's usual encouraging words; he pressed the matter home, he cross-examined the young man, made him repeat whole sentences; he kept him relentlessly to the point, and reminded the Prince of a dry and skinny index-finger which stopped at each separate place and would not go on until convinced that the pupil really understood the lesson. Herr von Knobelsdorff began at the rudiments, and talked about the country and its lack of development from a commercial and industrial point of view: he talked about the people, Klaus Heinrich's people, that shrewd and honest, sound and reliable stock. He spoke about the deficiency in the State reserves, the poor dividends paid by the railways, the insufficient coal supply. He touched on the administration of the forests, game preserves and stock-raising; he talked about the woods, the excessive felling, the immoderate stripping of litter, the crippling of the industry, the falling revenues from the forests. Then he went more closely into our stock of gold, discussed the natural inability of the people to pay heavy taxes, described the reckless finance of earlier periods. Thereupon he added up the figures of the State debt, which Herr von Knobelsdorff forced the Prince to repeat several times. They reached six hundred millions. The lesson extended further to the debentures, conditions for interest and repayment. It came back to Doctor Krippenreuther's present anxiety, and described the seriousness of the situation. Suddenly pulling the "Annual of the Statistical Bureau" out of his pocket, Herr von Knobelsdorff instructed his pupil in the harvest returns for the previous years, summed up the untoward events which had caused their decline, pointed to the deficiencies in the taxes, the figures of which he had brought with him, and referred to the underfed adults and children whom one might see throughout the country-side. Then he turned to the general condition of the gold market, discoursed on the rise in the value of gold and the general economic unsoundness. Klaus Heinrich learned also about the lowness of the Exchange, the restlessness of the creditors, the leakage of gold, and the bank smashes; he saw our credit shaken, our paper valueless, and grasped to the full that the raising of a new loan was almost impossible.