New-York tribune., 1921-11-09
BOurse i'm Panic:
Mark Drops to
800 to Dollar
Berlin Bankers Fear Fall Of
German State, and Predict
Rate Will Decline Until
Ii Has Reached 1000
Prices Rise in Proportion
Wirth Cabinet May Rs
Forced Out and Conserva,
tive Government Formed
BY Joseph Shaplcn
Special Cable 30 Thc 7'ribHNc


Copyright. 1891. New York Tribune inc.
BERLIN, Nov. s.--Anothcr wild
panic--the widest since the mark
started its lightning-like flash down
ward--broke on the Bourse to-day, the
mark falling to about 500 to the dollar,
AS against the pre-war rate of about
four to the dollar.
Cries of calamity and hopeless bank
raptcy resounded throughout Berlin,
as the predictions made in many fnan-
cia' circles were that the mark would
continue on the toboggan until it
reached 1000 to the dollar. and this
would take Germany along with it to
ruin.
Many large mercantile establish
merits threatened to refuse to continue
selling to foreigners because of the
vidiculously cheap cost of all commodi.
ties to foreign buyers, due to the ex-
change rates Most stores and mercAn-
tile places, however, we're already out
OF old goods as result of the rush of
the last few days, and their newly re-
plentshed shelves bear prices so to 100
Fer cent above those of two weeks ago.
PRICES promise to go UP III proportion
as the mark declines.
AS result Of the situation brought
about by the decline of the mark, the;
government is facing new crisis and
tho Wirth Cabinet may fall. If this
comes about Conservative govern
ment may be formed with the adoption
OF policy of passive resistance to
the Allies financial program
Te-day's catastrophe fall in the
mark is attributed to the necessity to
cover large payments by German in
austry on raw materials, as we'll as
large bills falling due on heavy grain
Imports. In addition the Germans
themselves are rushing TO invest their
recent gains on the Bourse In dollars
rather than in their own, industries,
heights.
Fails TO Obtain New Loans =
Reports of the failure of Germanv's
EFFORTS to obtain new loans from abroad
likewise contributed to to-day's de-
moralization. Little hope was held out
that Herr Bergman, head Of the
Reich shank, would succeed in his efforts
in America to obtain financial relief
for Germany.
The "Lokal Anzeiger," commenting
on the situation, says:
1T is hardlr necessary to point out
sne consequences of the latest calamity
to the mark on German industry. With
the dollar at 500, the gulden at 100 and
the franc at % it practically will no
longer be possible for German industry
to purchase raw materials abroad. We
have entered the road Of Austria and
Poland"
The paper claims to know that Herr
bergmann while in America was in
structed to press the necessity for
financial relief for Germany with all
the powers at his command.
The continued devetup{fo,, of ~
mark means the re-esta blishment of
the economic blockade on Germany in
form more severe than during the
war. declared Minister Gessler, Demo
cratic member of the Cabinet. Ger
many, said Herr Gessler, was again be-
ing. cut off fror' the worlds raw ma
terials, which threatened to paralyze
her Industry and production.
Can't Possibly Pay Debt
'The 1a2,ooooo0 600 gold marks
which we must pay the Allies" said
Minister Gessler, s'has risen to-day to
seven thousand billion in paper marks
while the annual payments of $780,
100000 gold marks, amounting orici-
nally to $1,000 600 900 in paper marks,
now amounts to 1000, 100000 in paper
marks. We cannot possibly pay that.
The next few months will determine the
life or death of the German people and
the German state.
Similarly. Philip Scheidemann, So
cialist leader, speaking at Cassel, de-
clared:
"The fulfllment of the Versailles
Treaty is utterly impossible. We must
Allies must soon reorganize that the de-
mand for the fulfillment of our present
obligations is pure insanity. The Allies
themselves must soon realize the i'm
perativesnecessity for revision of the
treaty"
According to reports to-day more
than 68,000,000 600 paper marks held in
foreign countries for speculation are
pouring back into Germany. The effect
money already in circulation IN Ger
many will have is easily foreseen.
That the Reichsbank will be unable at
present rate of exchange to purchase
the necessary dollars to meet the next
reparotions payment in January ap-
pears certain.
Discussed in Reichstag
Germany's financial condition was
brought up in a discussion in the
Reiehstag in which Minister of Eco
nomics Schmidt declared that the con-
ditions forced on Germany by the AL
lies made it imperative for her to cut
down her imports. France had Hooded |
Germany with an enormous amount of
unnecessary goods, he declared. In the
last four months, Schmidt said, France
had dumped into Germany 9s9, 900 900
marks worth of champagne cognac
and other wines and liquors, 1a,O00, 900 !
marks wer of perfumes, oils and
powder, 3SV o00, 900 marks worth of un-
derwear and laces, and 100000 marks
IN jewels and precious stones.
The matter is very simple" said
Schmidt. EITHER we will drink French
champagne and quit our payments to
the Allies or we will continue meeting
our obligations and refuse to drink |
French wines"
Schmidt pointed out the development
OF financial speculation to vast ex-
tent in Germany in the last three
months as result of her unhealthy
economic condition and announced that
the government was determined to cur
tail and possibly stop this by special
legislation controlling the operations
OF the Borse. He said he hoped this
would prove partial palliative
Carl Helferich, former Vice -Chancel-
loF, replied to Schmidt, pointing out
that the governments deficit for this
year reached total of 1872, 900 900 900
marks. No matter what taxes the
Reichstag may institute, said Helfferich,
it would be impossible to cover this
deficit. He dems nded cut of so per
cent in the number of government en-
ployees.
Assailing bitterly the Wiesbaden