The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1921-10-10
BABSON SEES COLLAPSE
Of THE GERMAN MARK
Business Prophet Points Ont Lesson IN
German Situation

"a friond Of mine has recently been N
GERMANY. While there he WOE some
money in i poker game. When II" went
to- cash IN his chips h" WAS told I" Wat
a minute He waited two hours anu got
his roll OF Mark hores AMI all OF theh'
were Wet from the printing press. ina
Is the way German marks arc being
turned out today. Germany is fun or
Marks; but they are Cnly made NJ paper
So long as the Germans can sell AmeTi-
cans paper 1T such fancy price
pound. they will continue to PRINT
Marks.
The value Of paper money depends on
two things: the gold reserve 10 redeem
II. AMI the credit Of the government De-
hind 1t. There are millions OF marks
ueuat in Germany which can never DO
redeemed In coin. In fact 1t Is joke
10 think " that as possibility. As FOR
credit. the German Government Is not
on it's feet yet and no one has very
much confidence in 1t.
The intcrna tiUnal bankers are extend
Ink credit to German business nrms. IN
spite uf the German Government, be-
cause they have confidence In the Indus
robustness OF the German people. These
Qualities are entirely independent OF the
number Of Marks turned out In Eerlin.
German business men and German work
men can and will produce. English and
American Bankers know IT, and FOR that
reason they will continue {" arrange
credits for German firms in spite OF tho
fact that the Mark Is still falling.
Fever OF Speculation
"Now that the mark has hit bottom
and gore thru the GrrmInS are rush
Ing the stock market and buying stock
L..
fever OF speculation. We "aw that kind
of fever here two years ago. Stocks hit
the top Of the thermometer. but they
came down again and 4 lot of people got
hurt.
AT tho present time In Germany no.
body trusts the Mark. Accordingly cv-
rryunc wants 10 turn Marks into sccur-
: lilies Farm hands and servant girls are
huyinE stocks. People will take any
thing IL only they can get securities in
exchange for Marks. Sooner or later
the tide Of speculation will turn. stock
prices will tumble and a number of Ger
mans will be wondering whothcr they
are better OF with the worthless stock
certificates than they were with their
paper marks.
"Germany's position today Is perfect
testimony to the iact that al financial
dealings arc finally determined 10y the
fundamental laws of right and wrong.
German business Is getting credit from
bankers In former enemy nntiunS be-
cause the German people arc industrious
and dependable. The German Mark has
Dropped out OF sight because the gov
eminent put out ii lot Of worthless pap
or money which propi" are now unload
Ing wholesale in exchange for stock.
This is WHY the Mark which was worth
almost an American quarter seven years
ago is now worth less than n cent.
Both the German Government and
| the spectators have been busily en-
aged In an effort 70 get something FOR
nothing. That attempt however. has
never succeeded and never will. Some
thing for nothing does not exist What
We get we pay for someway or another.
: The common people In Germany know II
. and the New York hanks realize that
: they know II. This T. Gcrmany's SAL
walton. When the leaders or Germany
also learn this. thy will rcorganizc. In
the meantime look for financial fire.
works. With the German government
/ following its present practice the fu-
ture Of the Mark depends upon the mar
ket price for waste paper.
There is a littlo change in the stu
alton in the United States. business Ia
, nov 72.5 points below normal compared
with s25 points below q month ago. and
the low Of 10 points below which oc-
Cured during March. II, however we
will learn lesson from Germany and
quit trying to get something for moth
ting business revival will be greatly ac-
celebrated.
CAN rights strictly rcservcd.(