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agriculture, and great sums were spent on rural resettlement andrehabilitation. States and cities flocked to Berlin with their appealsfor funds to restore and overhaul every sort of public and semipublicedifice from museums to post offices.Arthur Rosenberg in his History of the German Republic(London, 1936) says:After 1924 the officials lost all sense of the value of money and seemedto believe that money would always be available at any time and in thequantity that was needed for any purpose. Thus it came about that allpossible kinds of new buildings and undertakings were embarked upon thatwere useful and defensible in themselves but were out of keeping with thetrue economic situation of Germany. In consequence of the general prosperitythe Reich government largely increased the salaries of its officials andthe state governments and municipalities naturally could not lag far behind.Rosenberg quotes from a letter written by Gustav Stresemannon November 24, 1927, to Dr. Jarres, chief burgomaster of Duisberg:I make no secret of the fact that it is above all the policy of the individualstates and the municipalities that causes me grave anxiety in thefield of foreign affairs. Time and again I have said in my public speeches thatit is necessary to distinguish more clearly between reality and appearance. Ihave no doubt that the will to work in a proper fashion does exist. Neverthelesscertain measures have given rise to impressions that do us incalculableharm. The fact that the Prussian state has granted fourteen million marksfor rebuilding of the Berlin Opera House and will perhaps make a grant ofHistory, Vol. 35, February 1932. The receipts recorded here for the central governmentinclude only the taxes retained for its own use:Year Receipts Expenditures Deficits(Central Government)1926—27 5,312,000,000 6,561,000,000 1,249,000,000 Marks1927—28 6,357,000,000 7,154,000,000 797,000,000 "1928-29 6,568,000,000 8,37j,ooo,ooo 1,807,000,000 "1929-30 6,686,000,000 7,987,000,000 1,301,000,000 "1930-31 6,534,000,000 8,193,000,000 I,6j9,ooo,ooo "(State Governments)1926-27 6,363,000,000 10,639,000,000 4,276,000,000 Marks1927—28 7,189,000,000 1,674,000,000 -{-5,515,000,000 "1928-29 7,730,000,000 12,426,000,000 4,696,000,000 "1929-30 7,593,000,000 12,836,000,000 5,243,000,000 "1930-31 7,482,000,000 12,770,000,000 5,288,000,000 **95