The daily morning oasis., 1919-10-04
SPECULATION IN
FOREIGN MONEY
Wall Street Has a New Gamble on
Which 1t Expects to Realize Heavily
UNITED Press Service)

NEW YORK, Oct. 3.-People who
want to make money-there being
several of them in the vicinity of
Wall Street and elsewhere in this
city-are struggling to adjust patrio-
tic scruples with possibilities of
"cleaning up" on the low exchange
value of the German mark.
Marks have hit the bottom in their
spectacular drop, it is felt by many,
who have followed the tumble in
value of the German unit of exchange
from twenty-five cents to three and a
quarter cents. Much exchange on
German banks is being bought at the
low price.
Most of the purchasers are bank
employees, people connected with busi-
ness houses, and those who "play the
game" ON the outside looking in at
Wall Street. Many bankers consider
the mark good buy, but cannot pur-
chase except as individuals, since re-
liable and conservative banks cannot
speculate on unproductive values.
Specializing on the mark is con-
sidered purely gamble, but usually
a good one, since the exchange de-
pends largely on trade, and it is
thought trade will begin gradully
1t is thought by many that the mark
should rise to ten cents in value in
side two years, enabling trebling of
money invested. However, conserva-
tives point at the Russian ruble, in
which many people invested, and
which is now down to practically
nothing in value. Many people who
invested in marks last Spring when
they were around eight cents, are
rueing the drop to three cents.
The system of buying most in vogue
is to purchase exchange on Berlin
banks. The receipt cam either be
kept here, and sold later, or can be
sent to Berlin, where the marks, can
be on deposit at interest. 1t is said
the Germans are not averse to the
enormous buying of marks even at
such low prices, since it will enable
them to secure raw materials on the
dollars they thus secure in Aemrican
exchange, and will stimulate trade.
Furthermore, demand for marks will
send their value up.
There is very general feeling, de-
spite the low price of the mark, that
the German will come back Industrial
ly very quickly, perhaps more so than
the French and Italians, due to the
Teutonic mania for work. The only
great danger, Bolsheism, is consider
ed pretty we'll under control, especial
ly since the new German Republic
has at its disposal at least million
fighting men under the name of
"Noske Guards"
Some who would otherwise stake
fling" at the money market, hesitate
because of anti-German feeling. The
idea of abstaining from buying any
thing German seems to have been
pretty generally forgotten, however,
in the jumble of new popular prob
lens which have arisen.
Buying of French exchange is al
most as spectacular as the German.
The French franc has dropped to
about half of it's original value, with
relation to American money, and
many people are acquiring money of
France, as a speculation. In most
cases, the French exchange is sent to
Paris, to be held on deposit until the
franc sees better days. The Italian
Ira is low, but is not popular buy
at present, perhaps due to lack of
confidence in the italian government,
or else lack of familiarity with Italy
on the mart of the Dublic