76 A REVISION OF THE TREATY chap.

For these reasons the collapse of the mark exchangemust, if it persists, destroy beyond repair the Budgetof 1921-22, and probably that of the first half of1922-23 also. But I should be overstating myargument if I were to base my conclusions on thefigures current at the end of 1921. In the shiftingsands in which the mark is foundering it is difficultto find for one's argument any secure foothold.

During the summer of 1921 the gold mark wasworth, in round figures, 20 paper marks. The internalpurchasing power of the paper mark for the purposesof working-class consumption was still nearly doubleits corresponding value abroad, so that one couldscarcely say that equilibrium had been established.Nevertheless, the position was very well adjustedcompared with what it has since become. As Iwrite (December 1921) the gold mark has beenfluctuating between 45 and 60 paper marks, while thepurchasing power of the paper mark inside Germany is for general purposes perhaps three times what it isoutside Germany .

Since my figures of Government revenue andexpenditure are based on statements made in thesummer of 1921, perhaps my best course is to takea figure of 20 paper marks to the gold mark. Theeffect of this will be to understate my argument ratherthan the contrary. The reader must remember that,if the mark remains at its present exchange value longenough for internal values to adjust themselves to