V

REPARATION

157

ments of every kind. Private hoards doubtless stillexist, but, in view of the great efforts already made,it is unlikely that either the German Governmentor the Allies will be able to unearth them. Thereturn can therefore be taken as probably representingthe maximum amount which the German Governmentare able to extract from their people. In addition togold there was in the Keichsbank a sum of about£1,000,000 in silver. There must be, however, afurther substantial amount in circulation, for theholdings of the Eeichsbank were as high as £9,100,000on the 31st December 1917, and stood at about£6,000,000 up to the latter part of October 1918,when the internal run began on currency of everykind. 1 We may, therefore, take a total of (say)£125,000,000 for gold and silver together at the dateof the Armistice.

These reserves, however, are no longer intact.During the long period which elapsed between theArmistice and the Peace it became necessary for theAllies to facilitate the provisioning of Germany fromabroad. The political condition of Germany at thattime and the serious menace of Spartacism renderedthis step necessary in the interests of the Allies them-selves if they desired the continuance in Germany

1 Owing to the very high premium which exists on German silver coin,as the combined result of the depreciation of the mark and the appreciationof silver, it is highly improbable that it will be possible to extract such coinout of the pockets of the people. But it may gradually leak over the frontierby the agency of private speculators, and thus indirectly benefit the German exchange position as a whole.