m THE BURDEN OF THE LONDON SETTLEMENT 83

results show that the figure taken above is of theright general dimensions and is not likely to bewidely erroneous. It enables us, too, to put an upperlimit of reasonable possibility on our figures. Noone, I think, would maintain that in August 1921nominal incomes in Germany averaged 10 times theirpre-war level; and 10 times Helfferich 's pre-warestimate comes to 6420 marks. No statistics ofnational incomes are very precise, but an assertionthat in the middle of 1921 the German income perhead per annum lay between 4500 marks and 6500marks, and that it was probably much nearer thelower than the higher of these figures, say 5000 marks,is about as near the truth as we shall get.

In view of the instability of the mark, it is, ofcourse, the case that such estimates do not holdgood for any length of time and need constantrevision. Nevertheless this fact does not upset thefollowing calculation as much as might be supposed,because it operates to a certain extent on both sidesof the account. If the mark depreciates further,the average income per head in paper marks willtend to rise ; but in this event the equivalent inpaper marks of the Reparation liability will, since it isexpressed in terms of gold marks, rise also. A realalleviation can only result from a fall in the value ofgold (i.e. a rise in world prices).

To the taxation in respect of the Reparation chargethere must be added the burden of Germany 's own