Morris tribune., 1921-12-09
CURRENCY INITIATION IN EUROPE

(By GEORGE E. ROBERTS, in the Monthly letter is
by National City Bank of New York for Decem-
ber)
European currencies nearing stage at which it
will be impossible to them media of exchange
There we'll defined line at the crossing of which
currency becomes worthless but evidently it cannot
tnue depreciate without reaching in time the point
where the public will refuse to give anything for it,
Russia the old unit, the rouble, formerly worth
about 81 cents has value small that the old de-
nominations have long since passed entirely of
thousand rouble note of the issues will not
buy anything AS the depreciation has progressed the
denominations have risen 10000, $4,000 and 100000
rouble notes becoming the common change in use.
The Polish mark, nominally worth 1913 cents In
of the United States is quoted at .OS of cent
the Austrian CROWN formerly 20 cents only slightly
higher; of Jugo-Sava, which corresponds to
the Austrian unit, is worth little about SO Of
cent the of Hungary of the family is
worth about onetenth cent and the lei Of Rumania
formerly 1913 cents is worth 76 of cent These cur
rences very extinction and live only because
there is nothing to take their places 1t is duo see
how business be carried with them, and particu
lary how for future performance be
entered into in terms of them
CURRENCY SITUATION IN GERMANY.
Consider for example, the situation in Germany,
where six months ago the mark worth " cents and
three months ago worth than cent,
against present value of about 35 hundredths a
1t is true that the mark has declined as rapidly
in purchasing within Germany in the foreign
exchanges The relationship between internal prices and
foreign exchange is close enough to
steady decline in the value of the currency
internal use resulting in strikes and wageadvances
stanty The most effective influence for bringing the
internal value of the mark into line with it's value in the
exchanges the cost of food Germany is obliged to i'm
port grain meats cotton wool and other necessarie
terng into common consumption these imports must
be paid for at the current rates exchange Since trade
in these commodities is Free portions imported
fix the prices for the homegrown supplies as WELL and
the depreciation of the reflected in the cost
of living.
THE COLLAPSE OF PAPER CURRENCIEs
Included in the above-named countries is much the
greater of Europe and important what
effect further changes in their currencies upon
their foreign trade and internal life They apparently
have not the within themselves them
to get out of the fatal cycle of imitation
rency depreciation government must continue func-
ton and must it's with something These govern
ments do not to be able to increase
enough to catch with the depreciation
rences and give them chance the printing
1t must be recognized also that there tendency
revenues to fall off in all countries owing to business
depression It is question whether any government in
Europe will it's out of this year and
not altogether certain that the of the United
States will do it. The raised the of government
as we'll all industrial COSTS disorganzed the en-
tire social and industrial system.