FLUCTUATIONS IN PRICES.

IN the Spring of 1921, the following conversation might have been overheard between an AmericanandaGerman. A.: You see the consequences of the war are worse for

the victor than for the vanquished. G.: Only apparently, and for the moment. The future, I

fear, will teadi us something different. A.: Nobody can look into the future. At the present minute, we witness the biggest economic collapse that the world has ever seen, all countries suffer from it, except Germany. All states had made preparations for peace, now the stored up goods are lying there and nobody wants them, not even Germany. We thought, that Germany, bare of everything, would swallow anything. G.: The reason is, that Germany cannot pay. Her gold and tangible gold values have been taken from her. Why do not the other countries buy? Their peace production has been lying idle for years, consequently, the shelves must be fairly empty. A.: Quite right, but prices have risen to an unreasonable height. Düring the war, a most wasteful regime pre* vailed,- everybody made big profits or received huge wages, and accustomed himself to a most sumptuous

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