New-York tribune., 1921-12-05
German Trade
And Finance
Grow Worse
Instability Of Mark and
Quick Changes i'm Value
Unsetiling Business and
Governmc entail Plans
Monetary Moods Rule
Large Amount, OF Marks
Abroad Forms Speculative
Basic: New Paper Issues
ygeelaI caala 70 The za4aaas

Copyright. l92l, Now York Tribune Inc.
BERLIN, Dee. 5.--The last week has
demonstrated more than ever the
urgent necessity OF The stahilizatiou
Of the mark. The antics it performed
during the week vastly increased the
confusion, fear and uncertainty O. the
German financial world. With the sud
den meteoric decline in the dollar
stocks and other securities on the
Berlin Boerse went down drasticaliy
Within five days-from November IT
TO December 1.-The dollar sank from
293 to IS7 marks, The buying power
Of the mark abroad rose CORES spending
ly. while prices OF raw materials and
other essentials suffered q correspond
ing decline, combined with ii heavy de-
crease in the prices obtained by Ger
man manufacturers for their exports
The series OF developments accom-
panving the sudden strengthe OF
the mark represents naetamorph of
Worldwide economic significance, with
cut, however. serving 10 infuse CON
hdence OF some sort in the certainty Of
the international financial and COM
mereial outlook.
The movements of the mark during
1921 are seen IN the following fig
ures:
AT the beginning of the year the
mark stood ct 10. in January at 65.
in February at 81, in March at 81. in
April at So, in May at 50, in June at
50. in July at rs, in August at 81, in
September at l04. On October began
the rapid decline of the mark. 1t stood
then at 122. and on October 90 at 1888.
on November l at ISL. on November 5
at 205, on November 4 at 240. on No
vember at 24S and en- November at
302
Then came the renewal Of hopes OF
the Reparations Commissions grant
ing Germany some sort of relief from
the renarat cas- payment, which sent
the dollar DOWN to 247 marks With
these hopes blasted for the moment.
however. the mark took another fall
to 2S7 to the dollar on November 90.
With the news still holding out pros
poets for mora torium, the mark I'M
mediately went TO 275, and continued
rising at 8 dizzy speed to 1877.
The most vicious aspect of the whole
situation IS that the standing of the
mark is dependent largely on monetary
moods, particularly III so far as its
standing abroad is concerned. With
one hundred billion marks and other
German paper floating about abroad
this is not surprising This vast sum
remains constantly the plaything of
monetary moods, with buying or selling
tits setting in almost at a moment 5
notice. This situation, combined with
the colossal speculation in progress in
the German market in the past eight
weeks, has played havoc with German
finances, particularly the governments
budget and taxation programs, which
IT turn affect the whole problem of
Germany's obligations to the Allies.
AS this IS written the mark is show
ing another weakening period. going
down to 1877, mitigating the effects Of
the crash of last Thursday. which the
financial world terms BLACK Thurs
day 1t was indeed black for many
concerns, so much SO that banks are
now discussing ways and means for
quick relief III order to forestall many
impending bankruptcies, which il not
prevented, it is feared, will prove to
De the beginning of general financial
crash--a crash feared all along because
OF the vicious contradiction Of the
brilliant state OF industry and the
weakness in finances.
The governments finances during
the last week do not present s. graft
Tying picture. While report on the
iast ten-day period showed a decrease
IN the floating debt. last week record
ed an Increase of four billion marks,
making total of 221.152 billion. The
Relchbank's report likewise is not en-
couraging, showing q new issue of one
and quarter billion Of paper money.