The New York herald., 1922-08-25
BERLIN BOURSE PANIC;
DOLLAR 1000 MARKS
Jumps Hundred Points Hourly
OH Reparations Settlement
Deadlock.
FAILURE SEEMS CERTAIN
French Delegate Sees No Hope
Moratorium Again
Deferred.
FAILURE SEEMS CERTAIN

BERLIN, Aug. "a (Associated Press).
The continual rise in foreign cur
rency, provoked by fears of failure
of the negotiations between Sir John
Bradbury, British member of the
Preparations Commission, and M. Maui
clere, chairman of the Allied Com
mittee on GUARANTEES. with German
officials. in regard to Germany's fnan-
cial obligations. caused panic on the
Bourse to-day.
Sir John and NJ. Mauclere have
concluded formal discussions with the
German Government but will hold n
final session with Chancellor Wirth
and DR.. Hermes, the Finance Minis
ter. tomorrow. While the German
Government remains silent and Sir
| John hopes that the situation is not
entirely hopeless, NJ Mauciere is con-
vinced that the deliberations have
failed to produce any tangible results
and sees no hope of arriving at basis
of settlement which would be mutually
acceptable. Such an outcome would
not Oilly ledNe tLc IHoI iSSuS
in allegiance temporarily. but again
refer it to the Preparations Commits
sion in Paris.
The dollar. which hitherto had adj
vanced from 30 TO 40 points daily,
showed hourly rises Of more than 100
points. At one moment It stood at 1000
marks. Foreign currencies were almost
unobtainable. nobody being willing 10
sell them. The pound sterling reached
$500 marks.
| Commercial bargains between pro-
ducers. wholesalers and consumers. ac-
cording to the Berliner Td0obldtt, are
being increasingly transacted on the
basis Of the dollar quotation. The news
papers say that a number of the small
banking firms and some brokers arc In
difficulties owing to their obligations in
foreign currencies. The issue of money
orders for foreign countries has been
suspended.
| Vortcdorts announces that representa-
tives OF the leading trades unions intend
to Immediately visit Chancellor Wirth
and urge that the Government adopt
energetic measures TO prevent the col
lapse OF the whole economic life of the
country.
! blame Secret Diplomacy.
| A section OF the press reproaches the
Government for its failure to adopt
measures which might have prevented
the precipitate crash Of the mark. charg-
\ ing that the Government unduly stressed
the reparations issue without attempt
| ing parallel action calculated to bolster
the mark at home while the negotiations
were proceeding.
The Governments policy of secret
diplomacy" with sir John Bradbury and
". Mauclere Is blamed by some OF the
newspapers for the panic Selling the
| Bourse and the "valuta hyenas."
There was literal catch-as-can
wrestling match for dollars. sterling
and other foreign moneys on the Bourse
to-day One of the gravest symptoms
| OF the money crisis suggested is the APP
preciabie decline In bank and savings
I deposits, the mark having been rele-
gated literally TO the category OF per
| ishable goods" It's period OF usefulness
now being measured by days and hours.
Further slump ImmaterfaI.
The Bocrson Courier calls attention 10
the prediction of the Paris bankers CON
vention with regard 10 German currency.
which II says IL now more than vindi-
orted. This newspaper expresses the
belief that the mischief was wrought
| through Indifference abroad and now
I cannot be undone. and that any further
slump I'm the mark. even TO an infin-
tesimal fraction OF it's normal value, Is
virtually mmaterial In connection with
I ~ bearing on the psychology OF the
/ present situation.
Tho Bourse organ discovers an un-
\ Canny feature In the present crisis In
/ the TACT that tho jump OF the dollar from
\ 1000 to 1000 required but nine days.
' hereas the previous rise from 600 to
4 1000 was spread over three weeks.
one of the anomalies of the situation
\ Is supplied by computation based on to-
| days value of German currency, which
makes Germany the only country in
/ Europe whose paper currency Is more
than covered by a gold reserve OF one
billion marks. In this connection II Is
pointed out that Austria's currency
represents sio.ooo,o0o and Russia's
$50. 100000.