The political situation in Germany is still confused, but it
looks as if the Republican idea is gaining ground. On Sunday the executive of the German People's Party, hitherto Monarchist in its views, formally declared that Germany could only recover by maintaining her Republican constitution. The Socialists question the sincerity of this declaration by Herr Stinnes and his allies, whom they wish to exclude from any share in the Government. But it is none the less significant that the People's Party should feel it necessary to profess Republican sentiments. Search is still being made for the ringleaders in the Monarchist conspiracy whioh led to the murder of Dr. Rathenau and to the assault on Herr Harden, the journalist. The prevailing unrest is reflected in the sudden collapse of the German exchange last week, when as many as 2,460 marks were quoted for the pound sterling. A mission was hastily dispatched to Paris with the object of demanding a suspension of the reparation payments after the instalment of £2,500,000 in gold, due this week, had been paid. It would be premature to conclude that Germany is going bankrupt, but the rapid decline of the mark must intensify her difficulties.
