The New York herald., 1922-12-11

opectoI CIOtesto IHE NEW YORK HERALD.
Copyright, 1929, by THE NEW YORK HERALD.
New York Herald Bureau.
Berlin, Dec. TO-
spite OF the continued fail Of exchange
and the dubious industrial outlook, was
tbe feature of Germany's financial situa-
tion at the end of the week.
For example. Germany made 9 heavy
loan to her southwest African colony
before the war, covered by AZ per cent
bonds. When England took over the
colony the ,bottom dropped out of the
issue. but last week found buyers eagerly
seeking the bonds and the price ad-
vanced 1000 points. This is such a dis
tinct turn toward hopefulness that the
bondholders believe the loan will soon be
converted into pounds. sterling, thereby
makingthe bonds as solid as ever.
The. stocks of munition works also
were eagerly sought. as most of these
works are now converted to the manu-
facture of peacetime products and are
working steadily.
Sound commercial paper Is used more
than eyer to secure capital. and the
amount held by the Reichsbank has
Increased from 10000, 5000 marks to
$4,000. 100000. at an average rate of IL
per cent, interest, while private banks
are asking 80 per cent. In the same
time the flood of paper currency rose
110,300, 10000 The previous week 65,-
-000 900, 900 was issued The total now is
$4,000. 100000. Dollar exchange opened
at $3.50 Monday and closed at $3.50
marks Saturday, with the high at S.412.
There are increased signs in industrial
rvSr laoF ~ In, de hai da n ~ N
competition. A Rhinish, dye works.
which has been ightingsin vain to regain
prewar footing took most radical step
in abolishing the eight hour day. AL
though the worhmen were promised 1t
was d temporary measure, the owners
hopefo retain IL as a means of~recover-
ing lost markets. h
The locomotive industry was hard hit
by increased foreign competition and
the inability to produce at a price as
low as the world standard, while ship
yards are almost bare. Some are build
ing on their own account tos keep their
forces intact till spring. The electrical
industry. which has tried sliding prices
with exchange. has found buyers reluc-
tant to make uncertain contracts.
The November review by the German
Chamber of Commerce sees the entire
outlook pessimistically, saying that high
prices have killed the domestic market
and In many cases the foreign. IL
points out that. while there was a slight
Increase In. production of bituminous
coal. the increase in cost of production
and transportation resulted in a heavy
cut In consumption by industries and
public utilities AT best the supply Is
Insufficient TO spread over the country.
rs. for instance. So per cent. Of the Up
per Sllesian output for November was
released in Germany proper. while prac-
tically ali the remainder was consumed
in the mining region.
Iron and steel mills also are victims
Increased foreign competition. while
the vaunted aluminium industry con-
fesses that foreign articles are becom-
ing superior.
A sslight Increase in employment was
reported In few districts such as
f7henfsh WestphaIia. The Sollrgen cut
iery works only are on full time.
The texale industry has declared a
strike against manufacturers because
they demand that goods be paid for ac-
cording to exchange at the time OF de-
livery. Increased buying OF potassium
abroad Is largely counteracted by de-
creased domestic buying because of
high prices.