As Herr Erzberger's speech on the Budget showed, he is faced by a financial position unparalleled in the history of national bankruptcies. The interest which he has to find on the Imperial debt amounts by itself to Mk. 10 milliard; and his total annual requirements, exclusive of the Allies' demands under the Peace Treaty, are estimated at Mk. 25 milliard. Before the war the revenue from Imperial taxation was under Mk. 2 milliard. Additional taxation imposed during the war yields about Mk. 4 milliard. To-day therefore Germany is faced with an annual expenditure of Mk. 25 milliard and an annual revenue of Mk. 6 milliard--_i.e._, an annual deficit of Mk. 19 milliard, nearly ten times greater than the whole revenue of 1913. The new taxes actually proposed are estimated to bring in about Mk. 2 milliard. But the main sources upon which the Finance Minister is going to rely are two: a levy on capital and a tax on sales. The levy establishes a graded tax on all property, starting at 10 per cent. and reaching a maximum of 63.9 per cent. Payment may be made by instalments spread over 30 years, and it is estimated that the tax will bring in about Mk. 4 milliard annually. The tax on sales is still more drastic. It really consists of three different taxes: (1) a general tax of 1 per cent. on all sales, (2) a tax of 5 per cent. on retail trade, (3) a tax on the producer of luxuries of 10 per cent., and on retail trade in luxuries of 15 per cent. This tax is estimated to bring in about Mk. 3 milliard. But even after this raid on the owners of property and upon capital, the unfortunate Minister of Finance is faced with a deficit of Mk. 10 milliard. He proposes to get Mk. 2-½ milliard out of beer, petroleum, stamps, flour and meat, and the remainder, Mk. 7-½ milliard out of a uniform income tax for the whole country and an excess profits tax. The magnitude of these sums can be estimated when it is remembered that the total incomes of all Prussians earning more than a pound a week only amounts to 19 milliards, and that Helfferich's estimate of the pre-war income of all Germany was 315 milliards. But that was a very different Germany from the present. Germany has lost a greater part of its mineral wealth, the coal of the Saar, the potash of Alsace, the ores of Luxembourg. She has lost her colonies with their great potential wealth. She has also lost her fleet and a great part of her railway material. Over a million and a-half, or 16 per cent. of the male working population are dead. Industry has neither the capital nor the energy to reconvert itself to peace productivity. Much of the capital left is either concealed or has been carried abroad. German holdings of foreign securities were estimated at twenty milliards before the war and not more than one milliard now. Over a milliard of the gold reserve at the Deutsche Bank has been paid for foreign provisions, leaving only a milliard and a-half to cover a note issue of thirty milliards.