New-York tribune., 1921-10-24
German Export
Trade Opposes
Use. of Marks
Uncertainty of Standing i'm
Exchange May Cause Sub.
stitution of Foreign Bills
in Payment for Goods
Would Help Recovery
Berlin Financial Circles
Depressed by Break in
Rates; Little Hope Seen
Specia, Gable to The Tribune

Copyright, 1921, New York Tribune Inc.
BERLIN, Oct 23. - Although the
mark at present shows considerable
Improvement, being quoted at 168 to
the dollar on the Boerse, as compared
to 100 reached at one point in the re-
cent foreign exchange panic, there ap-
pears to be little hope in Berlin finan-
cial circles of substantial improve
ment toward stabilization of the mark
III the near future.
In fact, German financial and COM
mercial authorities are seriously dis
cussing substitution Of some foreign
monetary unit in German export trade.
The idea that Germans demand pay
ment for exports from foreign buyers
in exchange on their respective coun-
tries, instead Of in marks, seems to be
receiving favorable attention in export
circles. The 'Frankfurter Zeitung"
particularly urges the adoption of this
method, saying:
"The speed Of the devaluation of the
mark and the extreme uncertainties of
its standing make it imperative for the
protection OF our industrial interests
to demand payment from foreign buy
ers in currency of the respective coun-
tries The paper believes that even
with the adoption of this new method
Germany would be able to sell goods
abroad cons derably below other coun-
tries and at the same time contribute
to the stabilization of German ex-
change.
This method, if unanimously adopted,
together with strict regulations now
contemplated by the government
against speculation in the mark, will
contribute materially, it is hoped, to
curbing the downward movement of the
mark, with all the disturbances-both
nationally and internationally-whic
such movement entails.
Despite these indications Of an awak-
ened hope for a settlement of the ex-
change problem, however, German
financial circles appear to be extreme
ly pessimistic and look forward to
winter of zigzagging uncertainty,
mounting cost of living and, conse-
quently, labor troubles.
Meanwhile the amount of paper
marks in circulation, according to tho
Reichsbank's report for the first two
weeks of October, shows an increase
of 141 100000 marks. Altogether there
are more than 95,000,0o0,00O paper
iis'Ih III ClTCuldClOu. MS amount Is
expected to show a further substantial
increase by the end of the month.
The fall of the mark. particularly
the recent catastrophe decline. has ma
terially driven prices upward Ger
man industry already is virtually un-
able to purchase raw materials abroad
The importation of wheat has been
badly crippled. Prices on the produce
markets have increased more than 200
per cent as compared to July. Rye
flour is selling at $50 marks per 100
kilos, compared to 225 marks in july.
The metal market presents a similar
situation. Copper is quoted at 5,410
marks per 100 kilos now, compared to
1926 marks in July. All other com
modities have undergone like modi-
fication.
Beginning October 20 the tax on gold
was increased by 1000 marks. An ad-
ditional increase in this tax is ex-
pected, as the new figure does not take
into consideration the recent develop
ments in marks. The rapid decline of
the mark likewise is showing it's ef-
fects in the international commercial
market. American exports of grain
copper, cotton, fats, etc, to Germany
show a great decline. It is believed
here that American investors in Ger
man loans and securities probably suf-
fer losses in depreciation to the extent
of 30 to 80 per cent.