elp to his commander; and Gondrermark came to his
aid, in suave and measured tones.

"Your Highness may reasonably be surprised," he said; "and Herr
Grafinski, although I am convinced he is clear of the intention of
offending, would have perhaps done better to begin with an explanation.
The resources of the state are at the present moment entirely swallowed
up, or, as we hope to prove, wisely invested. In a month from now, I do
not question we shall be able to meet any command your Highness may lay
upon us; but at this hour I fear that, even in so small a matter, he
must prepare himself for disappointment. Our zeal is no less, although
our power may be inadequate."

"How much, Herr Grafinski, have we in the treasury?" asked Otto.

"Your Highness," protested the treasurer, "we have immediate need of
every crown."

"I think, sir, you evade me," flashed the Prince; and then, turning to
the side-table, "Mr. Secretary," he added, "bring me, if you please, the
treasury docket."

Herr Grafinski became deadly pale; the Chancellor, expecting his own
turn, was probably engaged in prayer; Gondremark was watching like a
ponderous cat. Gotthold, on his part, looked on with wonder at his
cousin; he was certainly showing spirit, but what, in such a time of
gravity, was all this talk of money? and why should he waste his
strength upon a personal issue?

"I find," said Otto, with his finger on the docket, "that we have 20,000
crowns in case."

"That is exact, your Highness," replied the Baron. "But our liabilities,
all of which are happily not liquid, amount to a far larger sum; and at
the present point of time it would be morally impossible to divert a
single florin. Essentially, the case is empty. We have, already
presented, a large note for material of war."

"Material of war?" exclaimed Otto, with an excellent assumption of
surprise. "But if my memory serves me right, we settled these accounts
in January."

"There have been further orders," the Baron explained. "A new park of
artillery has been completed; five hundred stand of arms, seven hundred
baggage mules--the details are in a special memorandum.--Mr. Secretary
Holtz, the memorandum, if you please."

"One would think, gentlemen, that we were going to war," said Otto.

"We are," said Seraphina.

"War!" cried the Prince. "And, gentlemen, with whom? The peace of
Gruenewald has endured for centuries. What aggression, what insult, have
we suffered?"

"Here, your Hi