The Washington herald., 1921-04-24
DISRESPECT FOR MONEY y
DEVELOPS IN GERMANY
Experts See Relief Through Increased Out.
put and Resumption of Foreign Trade.

way he can make sure of getting
something for his money.
The German people not only
spend the money they earn, but In
the last few months they have even
begun to draw their savings from
the banks and to spend them. Ac-
cording to Paul Mankiewicz, direc-
tor ff the Deutsche Bank, since the
beginning Of August Berlin savings
banks have been steadily paying
out more than they are taking IN.
Germany's money crisis, its causes
and possible cure were outlined by
Herr Mankiewicz in the course of
an interview as follows:
Eject Of Gold Exports.
The export OF gold has taken
the bottom out from under the
German mark. We now have no
more than one milliard in gold
marks to cover sixty miiliards of
paper marks.
The taking of our gold was not
the only thing the entente did to
ruin the German mark. The occu-
patton authorities were responsible
for the importation, frequently un-
derhandeds OF articles of LUXURY into
Germany, such as cognac, wines.
perfumes. cigarettes costly furni-
ture. and what not. The German
people, deprived of these luxuries
during hve or six years, now fell
upon them and began spending bill
ions Of marks upon these things.
And the German mark sank still
lower down the scale of exchange.
We need food today, we need
raw materials. We need cotton, we
need a million and one things that
are essential IL Germany is TO be
rebuilt and regenerated once more;
but we cannot buy these things be-
cause our mark has no purchasinr
power. In Germany today not only
German money. but foreign money,
Is kept in the stockings Instead of
going to the bank. And there is NO
one wise enough to foresee whittier
u.s."
Herr Mankiewicz said that when
trade relations with Russia can n.
resumed again Germany will great
ly gain. because Germany knows
Russia well and would be best fitted
to deal with that country.
"Germany's relations with Russia
can only be resumed" he said.
when normal conditions are re-e,-
tablished In Russia. believe that
the natural resources and riches m
Russia are so great that when Rms
sia begins TO recover she will do so
rather quickly"
Views Of Max warsurr.
While Herr Mankiewicz stressed
the infRrnaffnna
in his judgment were Responsible
for Germany's financial condition.
Max Warburg. the noted Hamburr
banker. asserted that. rerardIess ~
what the foreign situation was
likely to prove, there were definite
courses to be followed Mt home IN
improve Germany's financial condi-
tion. Sterilization at home, cou-
pied with a proper use and distribn-
tion of her working power, would
save Germany. he said. =
The National Econonie Council.
There Is a "Reichwirtschaftsra I"
a national economic council, in Ger
many. occupying itself with the &C.
onomic questions of the day. Georr
Rernhardt. editor Of the vossi,che
Zeitung and Germany's best-paid
editor. is leading spirit in this
body. He Is also one of Gerr,any's
ablest financial writer's. Herr Bern
hardt is in agreement with MAY
Warburg in stressing the need OF
economic changes within GERMANY
to meet and overcome the present
financial crisis.
I'VE must have more production.
we must have cheaper production,
and we must have better Organized
and distributed production" Herr
Bernhard said. we have in Ger
many today industries in which 100
factories are working half time,
This may be in accord with the pre-
war idea in production, but we can.
not tolerate such a waste now. In
stead of operating 100 factories half
time we should close fifty factories
and operate the other nifty fun time.
Large numbers of workers whose
time and energies are only half
utilized would be released for new
industries" s0-f