Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1922-10-05
SCRAMBLE FOR GERMAN MARKS SETS RECORD
In MODERN FINANCIAL BUBBLE FOLLIES
First Complete Estimate Re-
veaIs Most Gigantic De-
fusion of History-Amer-
lea Leads Buyers List

man paper money now almost worth
less. America paid 10 cents, cents,
l cent a mark. America bought So
900, 100000 paper marks at an aver.
age Of 1 is cents a mark. $12 a
thousand. To-day paper marks sold
below 10 cents a thousand. America
has left what may be worth $685.
100000. Not more.
1.-THE buyers have given to Ger,
many more than twice as much gold
as Germany has paid In gold in war
PREPARATIONS payments to date, $685.
637, 000."
America has paid to Germany Il
sum equal to one-third the total of
the American Civil war debt, $2,845,-
907,6 26, August l, 1865. America.
victor over Germany, has paid her
as much as Germany in victory col
| lected from defeated France as in
dennity after the Franco-Prussian
| war of 1971-$96S, 000, 900.
The story of this frenzied Ameri-
can buying Of the German paper
| IlSF ~ has UGSI LOlOs O1lly
| fraynentarr, disconnected reports
have appeared from time to time.
| Herewith Is given the first complete
| report, with an analysis founded
| on official statistics of Berlin and
records in America. They have been
checked by canvass of the big
cities of the United States and the
scrutiny of eminent, thoroughly ex-
10, la,
change specialists.
These estimates are based on Ber-
lin official statistics of September 9,
1922, and latest records OF German
marks distributors in this country.
Financial Bubbles
Famous financial bubbles Of his
tory show nothing to compare with
the German mark craze. John Laws
French company bank crashed and
ruined a million F'renchmen over
night when its paper currency inf1a-
ton reached $4,000, 100000 francs on
an original capital of 1877 900
francs. France, the home land, sui
fer ed.
Germany, up to September 9, had
circulated 245,O00, 100000 paper
marks, the unguaranteed currency
of war beaten. practically insolvent
government. But the crash has not
come, perhaps because foreign gold,
the gold OF England as well as of
America, bought half of Germany's
bubble currency. She had marketed
80 ,000, 900, 900 marks in America.
London reports British losses in
German marks speculation at about
$b72, 100000.
The World estimates. that Ameri-
cas- buyers of German paper marks
hold 10000, 100000 in America, own
20 ,OO0, GOO, 900 held in Germany s.
900 900, 900 held in Amsterdam, Paris
etc., and have invested $4,000, 100000
of the marks they bought in buying
German bonds and stocks. The
analysis by the World resulting in
these estimates is given in full in
another article of this series.
All the German paper marks IN
the world are worth today, at the
current price, 70 cents a thousand,
about SITE 900, 900 in American mon
ely, less than one-fifth of the vast
sum America paid for one-third of
them.
Fiat Currency
The typical example OF nat cur
rency initiation and it's ultimate fate
heretofore has been for 200 years
the Mississippi bubble Of John Law,
Scotch economist of note, successful
specultor, who induced France in
1717 to experiment with his theory
that plenty Of money makes a. ma
ton prosperous and happy and pd-
per money secured paVes the route
to plentiful money.
Law merged his Louisiana com
pany with his bank, made their
shares interchangeable after taking
over the French national debt and
it's interest income. A royal edict
gave him control of the mint. He
hitched promises of vast profit for
his Louisiana company with appear
arce of solvency for his bank based
on the credit and honor Of France.
A riot of gambling in the company
bank shares increased their price
value sixteenfold.
Initiation Of the banks paper
money issue caused the disaster
when it reached 10000, 200, 900 francs
OH original capital of 1877 900
francs. It's income was per scent
on the latter. Those who remained
sane suddenly decided to buy cows
and farms with their paper money
and in a month Law was a ruined,
hated exile from. France.
The United States in 1875 coined
silver into trade dollars, not legal
| tender, for export only and used
with China and Japal, silver cur
| rency basis countries, a total Of 3d..
| 959,360. They were at a discount in
| circulation at home twenty years
later Spectators bought them un
at seventy and eighty-five cents and
made small fortunes when the
United States vindicatsd Uncle Sans
collar mark and retired them. That
| currency excitement was micro.
scopic, mere pneny ante, compared
with the mad market fer Germany's
| currency, paper, not silver.
London gambled in American
| G. eenbacks, Union anG Confederate
during the Civil war. see-sawing
their rival market from AppomattoH
| to Gettysburg. New York and Am
sterdam bought and sold more marks
| in day than London handled green
backs in year.
France lost 100000 in the De
Lesseps Panama Canal craze.
New York city alone has lost, sunk
without trace Of recovery, $22, SOC, 900
OF the $24,000,000 she paid for Ger
( man paper marks. The Bron1
bought probably half billion marks
one-fourth of the 2,000,000,00O credit
ed to absorption by this city and it,
enVirons.
Ten million buyers of paper marks
| in America is The Worlds estimate
Four out Of five of them speak tn,
German language as an inheritanc,
Of birth, parentage or the ancestral
or local influences of childhood.
This total Of investors, about 10,
100000, means that ten out Of ever,
115 men, women and children il
the United States own or have hell
in trust for them an average o