As part of its effort to revise the penal code in 1969, the Federal Republic of Germany increased its reliance on fines, including the introduction of day fines, in lieu of short-term imprisonment for minor offenses. The setting of fines according to the defendant's income is basic to the day-fine system, where the gradation of penalties, according to the evaluation of the seriousness of the offense, is measured by the number of days that the proportionate fine must be paid. Germany's previous trend toward the use of fines was accelerated by the requirement that courts order imprisonment only in exceptional cases. Traffic cases were particularly affected. The qualities of the offense and the absence of previous offenses, rather than an individual study of the offender, continued to be the dominant criterion influencing the choice of a fine. The chief effect of day fines was higher amounts applied to the more affluent defendants. Yet the amount of the fine appeared to have no effect on subsequent recidivism. For first offenders, fines were superior to imprisonment in avoiding reconviction. Day fines were no more effective (but not less effective) than imprisonment in the instance of traffic offenses. Fines were superior to other sanctions for petty property offenders but not for career thieves. Thus, 10 years after the introduction of the fine on a large scale basis, data support the view that the policy has been found politically acceptable, administratively practical, and penologically sound. Twenty-five references are provided. (Author abstract modified)