Great Falls tribune., 1921-12-04
GERMANY'S BAD FIX

WITH the German paper mark
w quoted at about one-third OF
one cent in gold, it is evident
enough to any person, that Germany
cannot buy gold with German paper
marks to pay indemnity install
ments coming due next January. A
paper mark is a promise Of the Ger
man government to pay 23.S cents in
gold sometime in the future. To pur-
chase gold with these promises at
| the rate of one-third of one cent
in gold, is to multiply the indemnity
so paid by about rs, if we figure
that Germany will ever redeem her
promises to pay gold for these
paper marks. The Versailles treaty
calls for payments in gold. It is
evident, to blind man, that Ger
many cannot make these payments
in gold. To keep on issuing ire
deemable paper money as she is
now doing can only result in bank
ruptcy. In fact. the present ex-
change rate shows conclusively that
she has reached that point already,
so far as her ability to redeem
paper marks in gold in concerned.
If this were not so, business men
in other countries would pay more
than one-third of one cent for her
paper promise to pay 23.S cents in
gold sometime in the future. Ger
man paper money is almost worth
less in the markets Of the world
today.
Neither can Germany pay in
goods. Nearly every country in
world that has any gold to pay for
goods have barred German goods
out of their markets by high tariffs.
It is so in the United States. It is
so to considerable extent in Eng
land. It is so in France. IF Ger
many had an immense stock Of
goods to sell, she would find it
hard to turn them into gold at
present, for the countries that have
gold do not want her goods. Other
countries, that might take them,
have no gold to pay with and must
pay by exchanging goods if they
trade at all with Germany. Under
these circumstances, it is not
strange that in Germany there is
talk of the necessity of a mora
torium, or postponement of the
payments due under the reparation
clauses of the treaty to allow Ger
many to catch her financial breath
before she is called upon again for
reparation payments.
That suggestion is not very pleas
antly received in France which is
also very hard up and desperately
in need of the cash payments due
from Germany, and on the strength
of which she has borrowed money.
But in Great Britain the need of
Germany for moratorium is gen.
orally conceded. Germany has her
financial representatives in London
now trying to arrange for such ex-
tention Of time in paying her debts,
and they are meeting with some
encouragement. ..
1t is not long since the Germans
were singing their "song of hate"
against England in all their public
places. Today they are looking to-
ward England for help and as their
only friend among the allies. When
the war was on, the average Ger
man did not hate the French or
Belgians as they hated the English.
They hated the last mentioned ma
tion with deadly white hot passion
of resentment. That was probably
because they did not expect them to
take part in the war. They consid-
cred them nation of shopkeepers
who would never think Of fighting
for scrap of paper, and besides
they thought that they had troubles
enough in India and Ireland to keep
them out Of the scrap in France
and Belgium. Their disappointment
was great when EnglSnd sent her
fleet to bottle up the German fleet.