Anybody who had no interest in mincing matters must have described the State finances as in a hopeless muddle. The country carried a debt of thirty million pounds--it struggled along under it with patience and devotion, but with secret groans. For the burden, much too heavy in itself, was made trebly heavy through a rise in the rate of interest and through conditions of repayment such as are usually imposed on a country whose credit is shaken, whose exchange is low, and which has already almost come to be reckoned as "interesting" in the world of financiers. The succession of financial crises appeared to be never-ending. The list of failures seemed without beginning or end. And a maladministration, which was made no better by frequent changes in its personnel, regarded borrowing as the only cure for the creeping sickness in the State finances. Even the Chancellor of the Exchequer, von Schröder, whose probity and singleness of purpose were beyond all doubt, had been given a peerage by the Grand Duke, because he had succeeded in placing a loan at a high rate of interest in the most difficult circumstances. His heart was set on an improvement in the credit of the State: but as his resource was to contract new debts while he paid off the old, his policy proved to be no better than a well-meant but costly blind. For a simultaneous sale and purchase of bonds meant a higher purchase than selling price, involving the loss of thousands of pounds. It seemed as if the country were incapable of producing a man of any adequate financial gifts. Improper practices and a policy of "hushing-up" were the fashion. The budget was so drawn up that it was impossible to distinguish between ordinary and extraordinary State requirements. Ordinary and extraordinary items were jumbled up together, and those responsible for the budgets deceived themselves, and everybody else, as to the real state of affairs, by appropriating loans, which were supposed to be raised for extraordinary purposes, to cover a deficit in the ordinary exchequer.... The holder of the finance portfolio at one time was actually an ex-court marshal. Dr. Krippenreuther, who took the helm towards the end of Johann Albrecht III's reign, was the Minister who, convinced like Herr von Schröder of the necessity for a strenuous reduction in the debt, induced the Diet to consent to a final and extreme addition to the burden of taxation. But the country, naturally poor as it was, was on the verge of insolvency, and all Krippenreuther got was unpopularity. His policy really meant merely a transfer from one hand to the other, a transfer which itself involved a loss; for the increase in taxation laid a burden on the national economy which pressed more heavily and more directly than that which was removed by the sinking of the National Debt.