South Bend news-times. (South Bend, Ind.) 1913-1938, 1922-08-21
HEAVY UNLOADING
OF MARKS BLAMED
FOR MONEY SLUMP
German Experts Ascribe to
Political Situation Rea-
son for Decline.

BERLIN, Aug. 2O.-(By A. P)-
Heavy unloading Of marks abroad
is the sole cause of the present col
/ lapse Of German currency in the
opinion Of financial writer's here,
who concur in declaring that there
[ Is no objective reason" for a STAN
pede in Germany's present internal
, situation, and therefore unite in as
cribing TO the international poll
( teal situation the real reason for
the slump.
In support OF this contention they
| cite the fact that the collapse OF
| the London conference sent the dol
lar rate TO a thousand and assert
that the French attitude accom-
plished what the London deadlock
merely stimulated. It is further
pointed out that the government for
more than a month past has not
/ been a purchaser of foreign cur
rencies as no PREPARATIONS install
ments have been paid. while the
/ part payment on clearing house obli-
cations reported funds which secur-
/ ed weeks ago.
It Is also asserted that Germany
/ has not been buying gold to pay for
wheat purchases abroad. German
experts admit that the government
| is utterly helpless in the face OF
! recent developments. that 1t is who'll
Is at the mercy of hostile foreign
policies and that any attempt or
! It's part or through private iuitia-
tive 70 bolster up the mark artifi-
| cially IN the present atmosphere
would be bound 70 prove disastrous
: There IS no tangible economic
ground for this unprecedented de
probation. says the Boersen Cour-
: fer which declares that the nations
I Industrial productive capacity con-
I tinues unimpaired. while the mere
! fact that imports exceed exports lis
! hardly a cOgent reason why the
world should abandon Germany"
Primarily Psychic.
/ The Boersen Courier also fails 70
an immediate cause for the mark g
/ present level inasmuch as these pay
ments have been plainly designated
/ for a year or more and must be
met in accordance with Germany's
capacity II believes that the mark 5
Z fluctuation is primarily a psychic or
psychological process and that the
! fact that the mark IS unstable and
capable OF slipping suffioes 10 pro-
duce violent drops. determined and
augmented by policies which con-
stantly threaten penalties and other
| economic punitive measures;
The prevailing shortage OF cir
/ culating currency within Germany
/ Is emphasized by several writer's as
one OF the most menacing effects OF
the present slump in the mark.
/ Vorwaerts suggests that the reichs-
/ bank forthwith proceed TO gather IN
the paper marks held abroad. which
now constitute a heavy percentage
OF is teal issue. The socialist or
gan declares that the present gold
value OF the total paper issue Is in
significant to the pre-war ratio and
/ advances the theory that the reichs-
I bank through the aid OF a gold loan
/ OF 500. 600. 900 marks might be able
10 coax back 100000. 900 600 paper
marks assuming that IL would be
able 20 buy them at today's rate.
Il doubts whether that much Ger
man currency is held abroad, but
/ asserts that the amounts are I'M
doubtedly excessive and represent a
circulating medium which is badly
needed at home at the present time.