r of gold monometallism will be paper,
and Germany is expected to go upon a paper rather than a silver basis.

In exchange operations German paper is about 8 per cent discount, but
exporting gold or buying or selling gold at a premium is by law
forbidden. All are penal offenses.

England can stand upon a gold basis because she commands the gold
promises to pay, but in war time she can threaten the stability of the
monetary systems of many countries. The United States saved its gold
base by closing the Stock Exchange, but the South American countries
were quickly in distress for gold.

To put India on a gold basis a few years ago, a tax was levied on
Indian silver imports with the result that India has absorbed
$400,000,000 in gold from England in the last five or six years, and
where payments to India were formerly one-quarter gold and
three-quarters silver, they are now one-quarter silver and
three-quarters gold.

All these matters are being sharply watched by the English economists.

A fifth lesson we may draw from the war is the necessity for a larger
official representation abroad. It was fortunate that before the
outbreak of the war the American embassy in London had been moved to
larger quarters by the gardens west of Buckingham Palace.

The strain that was thrown upon that embassy for information,
passports, transportation, etc., was something terrific. United States
statutes allow this embassy only three secretaries, but it had to use
eight, and the work continued until 3 A.M., and sometimes 5 A.M. There
was only one relief in the situation and that was in a study of the
queer characters one finds abroad, insisting that they are
representative Americans. Some of the people demanding free
transportation back to America declared their residence to be in
Hoboken, but could not tell if Hoboken were nearer New York City than
to San Francisco. It was a great temptation for some people to get out
of the war zone and into America at the expense of Uncle Sam. The
amount of business transacted by this embassy may be illustrated by the
fact that the cable tolls alone for several months cost more than the
former total expenses of the embassy.

Still another lesson from the war that America must learn is that food
supplies are now not national, but international. We have seen the
price of sugar in the United States jumping up and down in a commercial
battle between England and Germany almost before their cla