May your Magnificence allow me to express my thanks for your friendly words and for the picture of the past progress of important phases of our national development! I would like to include in my expression of thanks a heartfelt appreciation of the delightful reception which this year, as in other years, was accorded me by the population of the city of Hamburg. It was noticeable in the oldest citizen and in the youngest child. I have been able to see how the hearty and close relationship between Hamburg citizens and myself has gradually become traditional, for it passes on from generation to generation. Your Magnificence, has spoken of the sources which provide us with the material for the Fatherland's activity on the seas and has cited some brilliant examples in this line. Although I, too, have noted with pleasure how sport has developed greatly, I would, nevertheless, like to call attention to the fact that in one respect I believe our nation is following the right path. We are right in attempting to bring the mass to a higher level of development rather than to scoop out isolated great performances from a generally lowered average. The water sports which we foster and which have again brought us together here, have also seen a new yacht appear under my flag, and it has been successful in winning the Hamburg state prize, for which honor I am joyously grateful. The yacht is the creation of a German Hanseatic shipbuilder and was built by experienced hands at the well-known wharves of Mr. Krupp, on the water-front. This, too, is an indication of the development of our technical skill, which was possible only in the long period of peace which was granted us after the stirring years of military prowess. It is a symbol of peace which the merchant, the banker, the ship-owner needs in order to develop, and which they have used each in his own calling to such magnificent effect. I am sure I represent the feelings of all those assembled here on this beautiful and well-known ship of the Hamburg-American Line when I thank that line particularly for the great day they recently prepared for us. As another symbol of the long period of peace, a few days ago the _Bismarck_ left its stocks. It is the greatest vessel now afloat. We all of us know very well that this was no ordinary launching, both because of the size of the ship and because of the impression and attitude of the spectators. The Hamburg-American Line, through the building of this vessel, gave us the occasion for a great national festival at the moment when the thirty thousand tons glided down into the water. It was as if all the dross had been taken out of the lives of those of us who were present, and even from the lives of all other Germans, as we may judge from the expressions which come to us from all parts of the country. Envy, pettiness, daily conflicts disappeared. All hearts beat higher and remembered the great time and the great men who wrought in it and thought of the Great