The military chiefs hid themselves in their castles—sullen, broken. They put all the blame on the German people. It was they who had blundered and had been defeated. The invincible German armies had never been defeated. Never! Only Ludendorff in an incautious book confessed the truth that he had not been able to hold the line against the overwhelming assault of the Allies. But his argument was the same. It was German will-power that had broken behind the lines. It was Bolshevism and Pacifism that had let down the fighting men. When the Peace Treaties were published the German people gasped and, for a time, despaired. They were confronted with conditions which would crush them for all time. However hard they worked, all the profits of their labour would be seized by their enemies. However much they pinched, more would be demanded. There was no fixed sum which they could wipe out by stupendous effort, but only sums rising higher in fantastic figures for ever and ever. They were the bondslaves of the world. That mood did not last, though it came back again. A new mood followed and buoyed them up for a year or two. They had lost the War, but they would show the world that they could win the peace. German genius, organisation, and industry would rise above even the monstrous penalties exacted by their enemies. They would capture the markets of the world, smash all competitors by an industrial war, regain their liberty and commercial power. The Krupp works which had made great guns and all the monstrous machinery of war converted their plant to the instruments of peace, produced ploughs, steam-engines, safety razors, cash registers, everything that is made of metal for the use of life. Every factory in Germany got to work again. There were no unemployed as in England, because the workers accepted low wages, and desired work almost as much as bread in a fever of industrial energy, to wipe out the War and build up the prosperity of a peace. Defeat was better than victory in its moral effect upon the German people. At least they did not fall into that idleness, that craving for gaiety, that moral lassitude and indiscipline of spirit which overcame the victorious peoples. When I went to Germany, several times after the War, I was amazed at its energy and industry. There were no scenes in Berlin like those in London, with processions of unemployed and innumerable beggars and crowds of loungers round the Labour Exchanges. There was an air of activity in Germany, startling and rather splendid. The whole nation was working full steam ahead, and the products of its industry were being offered in the markets of the world at less than the cost price of similar goods in England. It steadied them and gave them a purpose in life.