000, while she exports to the United States
nearly $180,000,000 worth. No nation therefore can judge as well as the
United States what German commerce means to the world.

In what condition are the finances of Germany? In this field our
opponents will be obliged to change their views. In 1912 Germany's
national debt was about 14 marks per capita lower than England's. The
public debt of France per capita was far more than double that of
Germany. Germany, however, has large national assets which offset its
liabilities. For example, the stocks of the Prussian railways alone
exceed by far the aggregate amount of the Prussian debt, the income of
the railways alone is essentially greater than the amount which the
interest and amortization of the entire State debt demand. The war,
which, according to the French conception, was destined to bring about
the financial and commercial ruin of Germany, has brought forth the
astonishing result that the famous French money market was the first to
fail in this crisis. As early as July 25, before the rejection of the
Austrian ultimatum by Servia had been made known, the offer of 3 per
cent. redeemable French notes to the French Exchange was so great that
the Chambre Syndicale des Agents de Change in the interest of the public
prohibited the quotation of a lower rate than 78 per cent., while bids
of 74 per cent. had already been submitted. Sale in blank was absolutely
forbidden, and in the coulisse business was at a standstill. A few days
later the July liquidation, in the official market as well as in the
coulisse, was postponed until the end of August, which action proved the
necessity of a period of grace. On July 31 the French savings banks, at
the command of the Government, suspended daily payments and paid out
sums to the amount of 50 francs, fourteen days' notice being necessary.
The London money market, too, has hardly stood the war test. On July 30
the Bank of England was obliged to raise its rate of discount from 3 to
4 per cent., several days later to 8 per cent., and again after a few
days to the incredible rate of 10 per cent. In contrast to this the
President of the German Reichsbank was able, on the 1st of August, to
declare that the directorate, because of the strength of the Reichsbank
and the solid constitution of the German money market, did not consider
it necessary to follow England's example. The German Reichsbank has
therefore not exceeded the rate of 6 per cent. Wor