The Morning Tulsa daily world. [volume] (Tulsa, Okla.) 1919-1927, 1921-10-02
German Mark Collapse
Cost N. Y. Speculator
Even Hundred Million

value. however. stand tho German
printing prCssca. grinding away
coasrlosNy Some figures ou this
tremendous increase iu the clrcula-
tlon aro timely.
Germany payment OF her Sep
tomher iualalm"nt on rcpnrntious
was rulnD.dcnt with renewed out
pouring uf paper mnrks which
raised the circulation ~ The Ncichs.
bank between August 20 and Sep
tuubrf 3. 1921 from Gf. .ii3, ,OOO, 600
marks ~ 1880 600 OOd marks. an
Increase OF 100000 marks Is two
weeks Ia the same period the
Nolrbsbnuk gold reserve was rec
duood from fL0gl. $4,000 tu tO2a,-
1ON,OOO marks. Tho gold reserve
against this vast circulation ts
microscopic. Tho ratio 10 IA per
cent. To make her paper money re-
doomHblo at It's face value iu gold
appears almost an impossible task,
ana one which this generation, Nm.
duubtodly will not see.
Who collapse of the mark TO a
point fractiunally below I cent dur
Ing the last fcw days has attracted
tho attention OF the financial world
10 GcrmanyH finances more dra-
matically than could have boon
done Ia any other manner The
avalanche ~ selling, which has
caused the decline. may be at
trihutpd 10 - number uf external
ana iutcrnal factors. chief ~ which,
OF course, b. tho printing press.
In Germany one Of the factors
has been wild speculation, with tho
ultimate end In View ~ gottIug rid
of the paper mark and converting It
| into u stock. q bond piece of prop
orty or other tangible asset. some
thing that at least win be there
when the bubble has been pricked
and the inflated balloon coilapscs
So wild has the speculation become
within Germany that Il has been
| found necessary 70 close the Bours'
temporarily. and trading now ia on
a restrictcd basis. Tho era " spccu.
lntiOn now on In Germany has been
| called the 'catnstrophc boom"
can the investor OF spoculator here
dor Has he any way to turn tr
stop the Inevitable loss as the de.
cline In the mark continues? T.. II
/ Nowfield OF SIG Fifth avenue who
| has made u study of mark exchange
suggests that marks which have
Fbccn purchased be exchanged fOl
fGermnn municipal bonds. owing L.
the cheapeuing OF German nnnsc.
cured money" he says, credit In.
strumonts representing matcria
| values, such as German mortgag,
bonds. rise In price. because every
| body In Gcrmany wishes to cN
| change his paper money against ih'
credit instruent backed up by ma.
terlal assets such az mortgag,
bonds. Therefore, the frantic pur
chase of such bonds in Germany
and the rise In price thereof.
Here" MIR. Newflcld says. "is th'
remedy for the American investor ir
German marks. namely. To use hi
marks credits especially In a Ger
| man hank. to purchase German mu
nicipal bonds. The German mark
will fall. the municipal bonds. will
their real estate backing them. vii
rise and the increment viii b,
greater than the shrinkage of tn
| foreign exchange value OF the Ger
| man currency.
"The American investor. mol
| hitherto involved in the collapse oI
| a foreign currency, would best b,
guided on the following lines: In
vcstmonts In foreign bonds acquired
for the sake OF interest should b,
In dollars. Acquired for tho pur-
pose OF getting the benefit of tn,
ultimate rise In foreign currency
| they should he in foreign currency
| but for "A period not less than "a