A German train with its immense but impotent engine, its ponderous but dilapidated carriages, its officials once resplendent and arrogant, now servile and seedy, its groaning crawl from one breakdown to another, is a painful picture of the German State. And the financial position of the State railways is illustrative of the condition of State finances. Before the war the Prussian State Railways contributed to the budget a surplus of 600 million marks--now they show a deficit of 2,000 millions. In the intervals between the crisis of its internal convulsions Germany worries feebly about its finances, much as a merchant in mortal illness may worry about his bankruptcy. But, of course, nothing has been done or could be done because the business was still closed and the chief creditor had not yet filed his claim. Now we know what Paris expects Germany to pay, and we also know something of the financial position from the statements of the Finance Ministers, Schiffer, Dernburg, and Erzberger. The German debt before the war was an annual charge of 230 million marks, the peace expenditure excluding the army 200 millions. The war debt in December, 1918, was 146 milliards, increased in January by 3.5 milliards, in February by 2.7 milliards, in March by 2 milliards and estimated to increase further by 1-½ milliards per month on an average for the coming financial year. To this must be added ½ milliard for cost of expropriations, 4-½ milliards for reconstruction of ravaged territories in Prussia, 1-½ milliards for compensation of German shipowners, separation allowance subsidies to the German States, etc., in all 185 milliards about, with an annual charge of 10 milliards. Reduction of this item by total or partial repudiation of this debt, though advocated by the Opposition, is impossible without causing economic ruin and political revolution. The new army is estimated to require 2 milliards; about the same as before the war, because of the enormously exaggerated expense of this small volunteer force compared with the old conscript army. If, to the great political advantage of Germany, a Swiss militia were substituted for the Frei-Corps, this item could be halved easily. The estimate of 4-½ milliards for pensions is the same as that of France and will probably be exceeded, though as yet less than half that is being paid. This makes up a total annual estimated expenditure of 17,429 million marks, the mark at pre-war exchange being equal to a shilling.