The inevitable consequence of a depreciated currency must be a rise of prices, usually greater than the actual percentage of depreciation. To meet this situation there came a device possible in no other commercial country. The Government fixed prices at which goods could be sold. This medieval device could be enforced only in a land where such State interference had been habitual, and, of course, could give to the notes the fictitious purchasing power only inside the country. After the Christian Science fashion, one had only to believe the notes were of value to make them so; but in the cold world outside German jurisdiction, their value would be gauged by the chances of getting gold for them. Here, then, we find Germany in all the mazes of our ancient "greenbackism," but still in possession of a large stock of gold. As soon as the war ends, she may be able to return to gold payments at an early date—very much as did France after the ordeal of the Franco-Prussian war of 1870-1871.

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