The Washington herald., 1921-10-23


this article from Berlin, where a
fe Wmonths ago / met many promi-
nent people who gave their views on
Germany's chance Of paying the In
IDENTITIES to the allies and regain
ing her prosperity. 1t may be re-
membered that those views were
fairly hopeful, and was personally
Impressed with the marvellous ener-
gy, industry and organization Of
Of the German people and by the
many signs of rapid recovery from
the ruin of the war. despite the low
wages paid the working folk and
the poverty in the small homes.
II Germany succeeded in paying
the indemnities by an enormous in
crease in export trade IL would be
not only the greatest financial ad-
venture ever attempted. but, In so
far as she succeeded in this. she
would destroy the world trade of
Great Britain and the United States.
Since / wrote those words Ger
many has paid her first big indem-
nifty sum and has steadily under
sold British and American goods in
the Argentine and the Scandinavian
countries. The effect Of this has
been observed by the contrast be-
tween Berlin and London, Germany
and England, to say nothing OF the
United States.
Depression I'm London
In London. from which / have
come here, there are unemployed
professions. minor riots and a dreary
sense Of depression because Of
falling trade and the gradual fall
ing back to a low standard Of life
among all classes. Wealthy people
are selling their estates and motor
cars because Of the high taxation,
while capital is crippled, business en-
terprises are stagnant and factories
are closing down or working half
time.
In Berlin and other cities Of Ger
many. so far as can find out, there
is feverish activity and little un'
employment, and a brisk, increasing
business.
But the mark has dropped down
to half its value from the time
was here before. Something is rot.
ten in Germany's financial state
even though the Germans are cap
turing the world markets.
Loose-minded visitors. seizing su'
perncial Impressions after q few
days in Berlin. carry away a con
vtction that Germany 10 vastly pros
porous In comparison with othel
European countries. Certainly man,
persons here are making quick ant
big profts. There is a great wealth
in paper money among Speculation
Ia.S on--nrca.I ,rapfS N.DpfAran
motor cars pass increasingly dow
the Inter den Linden. There Is NJ
lack OF paper capital for CONNER
? cial enterprises OF every kind
J Looking into the shop window
, and watching the people in the BIZ
hotels, 1 am certain that there is
great deal OF luxury and in wealtl
in Berlin, due to successful nnancia
activity.
Other Side Of the shield.
But 1 see the other side OF tn
picture. I see q large number o
men still wearing old field uniform
, which have been converted into civi
clothes after three years of peac,
see working men who wear n
/ shirts beneath their TUNES. And
hear from many friends that tn
l cost of living here IL steadily mount
ing higher. while the value of tn
mark drops lower.
+ why has Germany's mark drop
! ped So low in spite of the boomin
: trade? One reason is simple. T
pay indemnities. Germany has ha
to buy foreign money, and. in $
doing, the exchange immedistel
, rises against her.
Another reason Is that the in
increase in export trade at cut
p throat prices is not sufficient {
balance the increase in national e1
} penditures.
5 Worst Of all. in order to baIanc
D accounts, Germany makes up tn
e difference by speeding up the print
ing presses for new issues OF pape
: money, Every time that is done, IN
: mark drops, and the cost OF Twin
: rises IN proportion, because IN
money will not buy 30 much.
Last week I mentioned the ne'
. agreement between Germany an
, France by which a part OF the in
demnity will be paid by German
: not IN money, but in material 70
i reconstructing Northern Franc
e That. seemed to me. and Il seen
E still q good arrangement. Certain
3 ~ 10 Is good for France, becaus
e she will receive real wealth in soil
: things, instead Of money, which !
only q symbol Of real things. Thl
agreement will help make better re
! lations between the two countrie
and so promote peace in Europe {
some extent, I believe. But IL wi
not tend. ! ind, to stabilize IN
: value of the mark, for Germany wi
J use her printing presses again {
pay her own people for their labo
a and to pay manufacturers, with tn
inevitable consequences that a fur
4 ther depreciation in the mark wi
follow. This will mean troubl
: with the workers, who will find, a
5 they are already finding. that thei
J. wages are worthless IN purchasin