making large profits, while a larger number of other businesses have been ruined. For all these reasons the impoverishment of the German people owing to the war is far greater than that of the people in Great Britain, and this despite the greater personal economy which the Germans have practised during its continuance.

At the same time, the war debt of the German Imperial Government for a twoyears war will be nearly as great as in Great Britain, namely, twelve billions of dollars. This gives an annual charge for interest of six hundred millions; to this must be added a further fifty millions a year, the average amount by which the German imperial revenue fell short of expenditure in the years preceding the war. So that even if there is to be no sinkingfund and no pension-money, the additional revenue to be found by taxation will not be less than 650 millions and may easily be more. As in Great Britain, this means doubling the required taxation revenue of the country.

The chancellor who attempts to budget for Germany after the war will be faced, therefore, with the same problems already noticed in the case of Great Britain, except that his problem will be harder because the wealth of Germany was less before the war than that of her rival, and in addition the impoverishment caused by the war will be greater. As in the case of Great Britain, a large part of the imposts will have to fall upon the wealthy class either in the form of income tax or of a tax on capital, an experimental form of which was adopted shortly before the war. If the main taxation takes the form of income tax, it can hardly be less than thirty or forty or even fifty cents on the dollar.

Before proceeding to a final conclusion one exceedingly important reservation has to be noticed. In the analysis of the finan

cial position of Great Britain and Germany after the conclusion of a war lasting two years it has been assumed that the expenditure of these countries other than that of paying the war charges will remain the same after as before the war. That is, of course, a very big assumption, but it has been made in order to have some basis from which to start. If this expenditure be materially increased or diminished, then to the extent of the alteration a corresponding additional burden or relief will be given to taxation. It is difficult to suppose that there can be any considerable alteration in the civil expenditure of the countries; but the military and naval expenditure before the war was enormous (in Great Britain about 400 million dollars a year, and in Germany about 350 millions), and it may well be that the political events at the close of the war may be such as to reduce materially these items. On the other hand, there are some people who believe that expenditure on armaments will be actually increased.

Further discussion of this question is outside the scope of this article, but the fact remains that the financial condition of Great Britain and Germany at the end of a two-years war, whether there be reductions in armament expenditure or not, will be exceedingly grave. Moreover, these two powers are among the richest of the belligerent nations, and up to the time of writing neither of them has suffered seriously from the destructive effects of invasion. The other countries, which are worse off in this respect, cannot fail to feel the situation still more acutely.

Such will be the effects of a two-years war. If the struggle is prolonged beyond that period, then for every additional month that it is continued Europe will draw nearer and nearer to that state of actual bankruptcy which the British exchancellor predicted.

"HENRY dear," said Mrs. Blodger, gently, without raising her pretty head from the pillow, "it 's nearly halfpast eight."

"What!" exclaimed her husband, sitting up vehemently and staring at the clock. "Where's Maria? She 's supposed to be here by seven, is n't she?"

"Perhaps she did n't come to-day." "That good-for-nothing darky! I'll go and investigate." Plunging energetically into his bath-robe and slippers, he sallied forth on a tour of the apartment.

No Maria sweeping in the hall; no Maria straightening up the living-room or library; no Maria dusting in the diningroom; no Maria preparing breakfast in the kitchen.

ger.

"How provoking!" sighed Mrs. Blod

"Provoking? I call it outrageous." "Yes; I'm sorry, dear, that this will make you late to your office."

"Oh, I 'm not bothered about that, for I've just put through some new efficiency systems which enable me to accomplish a tremendous amount of work in a very short time. What I can't stand is having that darky impose on us."

"But, dearest, maybe she 's sick." "Then she could have sent us word by telephone. No; she 's taking advantage of the fact that you are young and inexperienced. But she 'll be sorry for it. I'll discharge her myself."

"Now, please don't get excited, dear. If you discharged her, it might be days

and days before we could get another," she said.

"That would n't make any difference. We'd simply take our meals out. Except breakfast, of course. I'd get that." "You?"

"Yes. We'll start this morning. If you'll attend to the dusting,-later in the day, I mean, I'll bring you your coffee before you get up, just as you 're used to having it."

"But, Henry-"

"It won't be any trouble at all. Nothing is, no matter how unfamiliar it may be to you, if you go at it intelligently, scientifically." When Mr. Blodger was obsessed with an idea, it was useless to oppose him. The best policy was to let it take its course. "As I have often told you," he continued, "housekeeping could be greatly simplified if you women would only-"

Seeing that he was about to launch into a homily on efficiency, such as she had heard him deliver at least twenty times in the three months she had been married to him, she said:

"If you 're going to get breakfast, had n't you better hurry and take your bath?"

"That 's so," he admitted. Shuffling briskly to the bath-room, he was soon foaming at the mouth with tooth-paste.

There was a loud buzzing sound from the direction of the kitchen.

"Henry!" called Mrs. Blodger, "there goes the dumb-waiter. Shall I answer it?" "No; I'll ho," he replied pastily out of