Despite the efforts of the German Government to hold back a large part of the war indemnity for purposes of military defence and substantial enterprises, the people imagined themselves to be suddenly rich.

Prices rapidly rose, extravagant habits spread in all directions, and in the years 1872-73 company-promoting attained to the rank of a fine art, with the result that sober, hard-working Germany seemed to be almost another England at the time of the South Sea Bubble.

Alluding to this time, Busch said to Bismarck early in 1887: "In the long-run the [French] milliards were no blessing, at least not for our manufacturers, as they led to over-production.

It was merely the bankers who benefited, and of these only the big ones[82]." [Footnote 82: _Bismarck: Some Secret Pages of his History, _by M.Busch, vol.iii.p.

161 (English edition).] The result happened that always happens when a nation mistakes money, the means of commercial exchange, for the ultimate source of wealth.
After a time of inflation came the inevitable collapse.