The financial relationship between States and the Central Government is always a difficult matter to arrange. If the Federal Government is dependent on subsidies from the States, it can have no strength, nor even any real democratic basis. If the States depend on the Central Government, they have no vitality and become in time mere administrative departments. Under the old Constitution there was no clear principle, but the fiscal authority resided nominally in the States, while the Reich really by all manner of devices encroached on this autonomy. Now there is a clear general principle that the States must content themselves with such sources of revenue as are left to them by the Reich. And we certainly cannot criticise a centralisation which is indispensable to Germany in the enormous effort it must make to meet the financial obligations imposed on it by the Treaty of Versailles. Moreover, Prussia can no longer dominate Germany financially and economically as before. Prussia's economic preponderance has been greatly reduced by the loss of Lorraine, the Saar, and Silesia. In communications, too, Prussia can no longer give the lead and lay down the law to the lesser States; for communications come under federal control. Within two years railroads, posts and telegraphs and canals are transferred to the Reich. In the region of public welfare we find that the new German Constitution is more satisfactory than might have been expected from the conditions of its genesis. It meets adequately two main requisites for progress; the formulation of the general principles inspiring the practical provisions of recent progressive legislation, and the attribution of responsibility for further legislative development of such principles. Thus, besides establishment of equality of sexes, we find such principles as that "Marriage is established on the equality of the sexes." "Families with numerous children are entitled to equitable and equalising treatment." "Motherhood is entitled to protection of and provision by the State" (Art. 19). Illegitimate children are to have "similar conditions for their corporal, spiritual and social development" (Art. 121), "Childhood is to be protected against exploitation" (Art. 122), and so forth. While all these questions are attributed to the Reichstag (Art. 7, § 7). The same approbation can safely be accorded to the chapter on public work. The economic purpose of society is to "guarantee to all an existence proper to men." "Property has its obligations, and its use must also serve the common good." While these _voeux pieux_ are given more definite application in provisions for housing and contributory insurance, and in recognition of "nationalisation" in Art. 156. Moreover, these principles are, to some extent, guaranteed by the previously discussed recognition of Industrial Councils in Art. 165, which provides a measure of "socialisation," and by the specific recognition of socialisation as a principle in Art. 7, § 13.