In the second place, undoubtedly, the weakness of sterling was due to the German Crisis.

He gave us a very full history of the German Crisis, and the inference to be drawn from his remarks was that all the troubles from which this country is suffering and from which the world is suffering are to be attributed to the payment of German reparations.

It is as well to repeat here so that it may be read outside, that in the German Crisis, although German employers and workmen met once a day in order to negotiate and settle the rate of wage, by the end of the day the money would not purchase what it was intended to represent when the day's work began, with the result that at the moment anyone in that crisis found himself possessed afresh of a, substantial sum of cash he rushed to turn it into something other than cash which would not melt in his hands.

That Measure arose out of the German Crisis, now happily solved.

That is the scale on which we must go, as in 1906, when English and French interests in the Mediterranean were disentangled, the French taking the Western end and England the Eastern, when we were able to form that entente cordiale which took us through the stress and strain of the German Crisis.

- and I say this since the Secretary of State chose to link this specifically with the German Crisis - is the real problem facing the British Army or facing our Services generally.

In the German Crisis over reunification in recent years, the central bank tried to counterbalance the expansion and slackening of fiscal policy with an excessively stiff monetary policy.