The New York herald., 1922-06-19
BERLIN SALES MEET
FAILURE OF LOAN
Large Blocks of Stock Put on
Market to Prevent Slump
i'm Marks.

Special Gable 10 THE NEW YORK HERALD.
COPYRIGHT, 1899, by The New YORK HERALD
New York Herald Bureau.
Berlin. June Is.
The throwing OF large blocks of stocks
on the market by the German Reichs-
bank in an effort to stabilize the mark
was the outstanding feature in finan-
cial circles last week which fnanciers
passed in trying to counteract the ef-
feet of the failure of the international
bankers in Paris to recommend loan
for Germany and of the proposals to
increase taxation and begin a general
deflation of the currency.
AS result OF these efforts the ex-
pected slump did not materialize. and
while the dollar scared above 800 marks
on Monday. it remained steady through
out the rest of the week, closing Sat-
urday at S22.
The situation, however gave rise to
price increases in all lines and to ex-
tensive watering of stocks. in some in
stances as high as 100 per cent. Also
huge paper dividends were declared on
gold capital
Purchase of English gold increased
following the ultmatum of the Ruhr
miners concerning overtime. Purchases
of pig iron. especially from Luxem-
burg, also increased under the heavy
domestic demand. Finished metals re-
NAMED steady. but hides went up 20
per cent. Wool prices increased 20 per
cent. and silk prices likewise climbed
Cattle rose sharply with exceptionally
small receipts. Coffee was a strong
factor in the Hamburg colonial market
InvestorsCautfous.
Many outright purchases OF foreign
securities of all classes showed a eau
iious tendency on the part of investors.
Margin trading was heavy.
The Government review shows that
wages have increased 2S times over
what they were before the war, while
the price of wheat has increased 70
times. Moreover, bill now before the
Reichstag contemplates compulsory de-
liveries of grain instead of voluntary
to Government controlled bakeries, the
doing away OF the system of fixing the
price for a whole year. and substituting
provision that the market price for the
quarter previous to delivery should be
| taken into consideration. The agricui-
/ turists are saying that they are able t.
supply the country with grain without
| Government control, and are fighting
the measure bitterly. Market prices al
ready are affected in the retail. trade
and there is much buying in anticipa-
ton OF rapid increases in quotations.
Among the dividends declared were
Neuhaus Machine Company. 20 per cent.
| Graafenebroch Machine Company, so
| North German Earthenware Company
! so: Karl Linstroem Machine Company
I .,,I 1,a yNa1r ali 1nid
/ Lorenzo Telephone Company 35: Ger
man Oil Company and the Berlin Rome
berg Alkalin Company, each 25. and 4C
| IN bonuses Continental Ashfelt Com
pany, 80, and 20 in bonus; Weisstale,
! Spinning Mills, 20. and 20 in bonus
! Domnitz Earthenware, co; Lauphein
Machine. 40; Eastern Prussia Lumber
and Building, Riebeck Montan Halle
Rhenish Leather, Niederlaustz Goa
Mines. Saloman & Co. (wheat rnillers)
Stocking Manufacturing, United Ma
I chine. Oppenheimer & Co., all 80, with p
in bonus: Schering Chemical Works II
Berlin. 30; the Bosch Metal Works, 25
Phoenix Ignite and Coal Products, Ber
lin: Stern Oil, Hamburg; Beck Machine
I Cassel, all 20; Schaffhausenscher BAN
Verein. Cologne. 10; and Hamburg
Bremen Fire Insurance. 10 per cent.
Industry More Active.
German industry was more active il
May and the first two weeks Of June
according to reports of Prussian cham
bers of commerce and syndicate sur
veys. The prospect of a further de
cline in the mark stimulated foreig
buyers Hugo SHINES recently state
that Germany's exports were but 30 t
40 per cent. of the volume in forme
peace times.
There is tendency to export NOR
finished wares. including tobacco prod
ucts, which are approaching pre-wa
figures. Industry is directing production
increa singly to meet foreign market de
n1ands. notably in iron and steel an
chemicals. Textiles still are shipped i
great quantity to domestic and Euro
pean markets which are s,ightin
American and English trade
Robert Schmidt Minister of Econom
les. recently announced that the Govern
ment intended to apply a far-reachin
embargo upon foreign wares as pre-
liminary step to broader measure
on behalf OF commercial welfare. III
nance has been threatened by SUPER
fluffy OF imports. Half comes throug
the customs and half is smugged acros
the frontiers, particularly liquors, per
fumes and expensive cloth. The impor
tation of English coal has increased
that from Newcastle being cheaper j
Hamburg than .he Upper Silesian prod
uct. The Berlin gas works are usn
English coal. as are many factories II
the Ruhr Valley.
VIII Cut Imports.
Such imports totaled 100000, 00i
marks in May, and the Government !
taking steps to cut 1t down. The Goa
shortage has restricted steel production
in many cases to 2S per cent less thai
in April. The cost of production ha
been forced upward by wage demands
and rise of % per cent. in freigh
rates on June 1. In consequence. many
grades Of German steel cannot compet
IN the world market with American
Belgian or French metal. Fewer order
are reported in the locomotive work
and shipyards.
German chemical firms are buyinI
many crude chemicals in America 70
refinement in Germany. The heavy out
side demand for German chemicals fel
off in April.
Popular discomfort has led the Gov
ernment to take measures against th
export Of foodstuffs. especially suga
end canned goods. One report declared
that the profits OF fifteen sugar manu-
facturers showed 40 per cent. earning-
while the real profit was estimated a