Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1921-10-09
Decline of the Mark Contin-
ueS to Be Huge Problem
Since Gold Value Has
Disappeared,
TWO MILLION MARKS OF
NEW NOTES OUT WEEKLY
Over Half of 1920 Budget
Was Met With New Print
ed Money! Speculation
Not Cause of Value Drop,
(By MAMMALIAN HARDEN.)
(Gcrman's Foremost Publicist.1
Especial Gable TO Morning JOurnaD
Copyright 1921 by Albuquerque Journai)

Especial cable TO Morning JOurnaD
Copyright 1921 by Albuquerque Journai)
Berlin, oct. S.-Knowing not
what their paper money will be
worth tomorrow, many prudent
Germans are buying American doll
lars, no matter wnat the cost, and
putting them away with a satisfied
sigh, saying, 'at least L know what
have got.'
Meantime a political coalition be-
tween the parties of extreme cap
italism, of the peasants, of the
town and middle classes, and of the
fiery red industrial workers, is
blithely expected to improve the
rate of exchange. .
Experienced men from Wall
street will laugh at this, asking
how an intricate financial problem
can be solved through a co-opera-
ton of parties already unable to
agree about taxes, and customs and
the rights of capital.
These doubterS are correct. The
loudly proclaimed hopes are only
intended to cover desperation and
despair. News papers complain
that spectators are responsible for
the exchange fluctuations, but this
is a childish explanation and does
not deceive the experts. Money is
a commodity, the value of which
before the war was determined by
gold value, namely the cost of pro-
duction of gold plus a reasonable
profit. There was no difference be-
tween metal money and paper
money. 1t is true that our bank
notes today say that the Reichs-
bank is obliged to redeem them in
gold, but the gold reserve does not
exist.
Thus since the gold value which
formerly determined the price Of
money has disappeared, can we
wonder that the commodity value
has sunk ppecipitatimsly? In the
meantime money has lost its parity
value also. The paper mountains
ascend to Heaven. Two billion
marks of new notes are printed
weekly. II this continues it means
one hundred and four billion dol
lars of new money within the year,
and i fear it will continue.
our 1920 budget was one hum
uItu anu lt1 DltllOIGs VI MlllIh
fifty-one was met with newly
printed notes; in other words a
medium without fixed value but
fluctuating with the exchange
market.
The total income of the German
peoples in 1919 was estimated at
1000, 100000 marks. Even If es-
timated much higher today on ac-
count of money depreciation, the
state would have to take two thirds
of every Germans earnings to
buckle the budget, regardless of
whether enough was left to live on
or not. 1t is unnecessary to prove
that such a procedure would be
So, it is easy to keep the printing
presses working. But If the worlds
supply of diamonds was suddenly
a thousand fold, the price
would sink to ridiculous level.
Why then do so many wonder that
money, multiplied a thousand fold.
depreciates Initiation sufalces to
explain our exchange. Speculation
is as nothing in comparison and
efforts to improve the
while the initiation lasts,
are worse than useless.
The American, resident in Ber-
lin. readily perceives the ratio. Be-
fore the war he paid IS day for
two rooms and bath at a hotel. To-
day he pays exactly the same. But
before the war the price was stated
as twenty-five marks. Today ii is
stated as $50 marks, Good shoes
before the war cost so marks. Now
they cost 1900 marks. but they are
still s12 to the American.
Well and good for the American.
but anybody with an income in
German money and unable to in
crease 1t relatively to the purchas-
ing power. of the mark. is in d
sorry position. This is a case with
a majority of our townspeoplc.
are better in the coun-
try where the chief needs of the
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