Every class of society in Germany to-day feels that, bad as things are, much worse probably has yet to come. A sentiment akin to despair is widespread. The business community, confronted with an economic situation quite hopeless in its outlook, give way in many cases to helpless fatalism about the future. Restraints are thrown off, and despair expresses itself frequently in wild extravagance. With the sword of an indefinite indemnity hanging over them, wealthy Germans feel that a spell of riotous living in which their capital disappears is preferable to handing over the latter to their enemies. The working-people, confronted not only with food shortage, but with the abnormal cost of clothing and other necessaries, grow more and more restless. All this is a dangerous temper, not only hostile to economic and social recovery, but a premium on revolution. If Allied policy is directed to creating this temper, then it must be congratulated on a success not always conspicuous as regards its efforts in other fields. The policy pursued, however, has its dangers. A hungry country, balancing the possible advantages of revolution, can pay no indemnity nor make reparation for damage done. One or two axioms in this matter are self-evident. If Germany is to pay her indemnity, she must work; she cannot work unless food and raw materials are forthcoming in adequate quantities; with her finances in ruins she cannot begin to reorganise them unless told what definite charges she has to meet; if she is to carry out her obligations, she must have a stable government which commands confidence at home and is treated with some consideration abroad. It is quite easy to pursue a policy which will make the fulfilment of all or any of these conditions impossible. But how far a deepening of the present confusion will serve the ends of the Allies, let alone promote the cause of peace, is a mark of interrogation hung in menacing fashion to-day over the welter of Europe. CHAPTER X CERTAIN CITIES AND THE SAAR BASIN