New-York tribune., 1921-11-28
Stocks Decline.
But Recover in
Berlin Trading g
Threatened Tax on Profits
Halts Accumulation of
Securities; Confidence
Is Restored by Change
Loan Plan MoreFavorable
Mark Moves Within Narrow
Range; Improvement in
Government Finances
Special Cable to Tho Tribune

Copyright. 1921 New York Tribune Inc.
BERLIN, Nov. 27. -- The financial
situation here continued it's uncertain
zigzagging course during the week, al
though nothing happened which could
be regarded as a serious aggravation
Of the general aspect. Following the
great rise in nearly all securities Of
the week before. which was accom-
panied by veritable buying madness
on the part Of the public, there has set
in sudden quiet, due to the heavy
taxation put in effect on all dealings
on the Boerse, especially on profits.
Thereupon selling rather than buy
ing became widespread. driving securi-
ties downward at Hotpoint clips. The
sum total of these developments, how
ever was to push an immense number
of these securities back into the hands
Of professional spectators, who i'm
mediately drove them upward. The
weeks conclusion, therefore. saw
comparative balance of supply and de-
mand, which was regarded as a salts
factory result. The public suddenly
regained confidence in securities and
began buying them back.
A more hopeful turn taken In the
negotiations between Representatives
of industry and the government look
ing toward the granting to the govern
ment of large credits contributed to
this development. Mining and oil
stocks especially became buoyant, but
the general list settled somewhat in
consequence of renewed disturbances
in the political situation, accompanied
by food riots.
A curious feature of the weeks
events, however, was the long unseen
rise in government 31a per cent loan
bonds, which jumped from 72 to 105
per cent. Foreigners are said to be ac-
tive IN accumulating these.
AS far as the mark is concerned, it
remained free from violent fuctua-
tions. Although showing at first
downward tendency with the departure
OF the Reparations Commission and
the announcement that Germany would
be given no additional time in which
to meet January and February export
payments, the optimistic reports on
credit negotiations between the gov
ernment and industrial leaders served
as a restorative. The last few days
saw slight weakening in the mark.
which both Hugo Stinnes's trip to
London and Chancellor Wirth's an
nouncement regarding prospects of
German loans abroad failed TO hinder
The Reichsbank statement during
the week showed q greatly increased
demand for money. which was at
tributed to wave of higher prices and
to demands for higher wages. The cir
culation of paper marks is now esti-
mated at 1921 900 100000. This marks a
serious aggravation Of the financial
problem, as compared with the same
period of last year, when the flow of
money was toward and not from the
Reichsbank.
On the other hand. the governments
finances showed an Improvement in so
far as the internal debt was re-
duced by 66,000000 marks to PIT Goo
100000. The postoffice showed profit
Of 100000 marks, but the railroads
continued to show deficit, amounting
for the period to 08.O0O,OOO marks
These figures are contained in the
government report up to November 10.
The price of gold marks remained un-
changed during the week, the twenty
mark piece selling at $50 paper marks.
and the ten-mark piece being quoted
! at 425 paper marks.