Germany is optimistic, ardently desirous of peace, bent on worthily maintaining the great place she has won, and deserved to win, among the nations, and so materially prosperous as to make many Germans tremble at the thought that the prosperity may be too great to last. This, however, is not to assert that in Germany everything is _couleur de rose_. There are not a few things in the Empire's social and political conditions which are antiquated or promise no good. Noxious as well as beneficial forces have been introduced into the social life of the country and are beginning to make themselves felt. German home-life is ceasing to be the admirable and exemplary thing it was before the present era of class rivalry, commercialism, the parvenu and the snob. The idealism which made the Empire a possibility is passing away. There is need, and a general demand, for franchise reform in Prussia, and a change in the spirit of Prussian bureaucratic administration would be acceptable, though it is, perhaps, hopeless to expect it. The opposition in Germany between the monarchic and the democratic principle, if not more marked than it was twenty or thirty years ago, is manifesting itself over a wider and perhaps deeper area. The relations between capital and labour are far from satisfactory adjustment. Social democracy is yearly gaining fresh adherents, and if guilty of no political violence, is yet a constant source of danger to domestic peace. The German middle class, that bourgeoisie which is the backbone and strength of the Empire, is losing its Spartan simplicity and its content with small and moderate pleasures; and the national virtues of thrift and self-denial are yielding to the temptations of wealth and luxury. Business credit is unduly stretched, speculation in land has attained disturbing proportions, and the banking world is in too many instances allied with hazardous or doubtful enterprises. Nevertheless the country as a whole is sound, intellectually, morally, and financially.