Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1917-06-27
BLAME MORGAN FIRM
FOR R DECLINE
Germans Accuse American Bankers
of an "Onensivc" to Depress
Exchange Rates.

The Hague, June 26.-The Rhein.
ische Westfalische Zeitung, the ma
tional liberal and industrial organ,
publishes an editorial on 9TH Ameri-
can offensive against the mark value"
in which it remarks that when the
and America entered the war a new
phase Of the conflict developed. and
a steady offensive against the mark
was initiated by the Morgan firm,
which threw enormous American
holdings on the Dutch neutral mar
ket, which often sold at loss. On ono
day alone. it asserts. not less than
100000 marks were dumped on the
Rotterdam market by the Morgan
agents.
The Zeitung says that by the break
ing off Of relations with South and
Central America and China Germany's
field for financial operations has been
so decreased that restoration will be
difficult. and h a recent political de-
advantageous for spectators. The
slightest changes, it says, affect ex-
changes, n the extensive trade on
the Dutch frontier. which Is paid for
In paper money, sends large sums to
Holland.
The Zeitung advocates the Increase
of prices for all German exports of
SooAt Aol, w., ~ llSlS llUOTl1S COuNs
tries. and the giving up Of the 33 1-3
per cent covering In the gold reserve
for the benefit Of exchange. This the
Dry, 1t says, has been exploded, and
there has been a large export of Ger
man gold. Yesterdays report of the
Bank of the Netherlands showed a
tremendous increase in the Dutch
gold reserve
The New York Times correspond
ent earns that exports Of gold from
Germany have taken place on a large
scale this week, and that the i'm
provement in the mark rate is prob
ably due to this.
Bankers Ridicule "Onensive' Talk.
New York. June 26.-Bankers Of
this city have been moved to satirical
comment of late on the attempts made
by German newspapers to explain the
decline of the reichsmark's value in
neutral markets. 1t is said that the
favorite eXplanation-that American
banks are deliberately exerting pres
sure on the mark as a war measure
is clearly manufactured for German
consumption. Use is made Of state
ments of the sort, in banking opinion,
for the purpose of drawing attention
from the real economic influence of
Germany's credit and currency infa-
ton.
Ihere is no truth in talk of heavy
sales OF American-owned German Sc
curities in Amsterdam or other neu-
trail cities" said a leading foreign ex-
change banker yesterday. I'm the first
place, American banks and investors
sold out the bulk of their German
bonds and stocks months before the
United States entered the war; and, in
the second place, it would be a diff
ut matter to get selling orders
through the British censor, either by
cable or mail. The chance would al
ways be present that the proceeds Of
such sales would benefit the enemy.
The trouble with the reichsmark
in Holland and Switzerland is that
Germany is on a paper basis. and that
printing presses are working as fast
as possible to keep the output Of
paper equal to h demand. There IL
no surprise attached to q depreciation
OF ~ per cent from the normal value
OF the mark in Amsterdam; on the
contrary, it would distinctly surpris-
ing II the rate did not go down."
The shipment OF gold from German
banks to Holland is the first outward
movement of the precious metal indi-
Gated In European news dispatches
Tor many months. The Imperial Bank
OF Germany and associated institu.
tons have made all possible efforts Ia
increase their gold reserves, and the
release Of a round amount to the
Bank of the Netherlands was taken n
local banking circles yesterday ia
mean that the German financial Lead
ers had been driven to extreme meas.
ures to support reichsmark exchange
the Dutch markaf 80 81