New-York tribune., 1922-04-10
Heavy Increase
ln PaperMoney
Sti,'s Germany
New Aessviiy of Government
Printing Presses Seeming
" Due TO Credit Stringen-
CIV: Weeks Gain a Record
Is a Disquieting Symptom
Undiminished Prosperity
in Industry Is Seen De-
spite Financial Situation
Special Coblc TO Thc 7ribane

COPY l1Eflt, IFZs. New YORK Tribune Inc.
BERLIN, April 9.-Oficial reports
and statistics published during the last
few days throw into strong relief the
paradoxical character of Germany's
present economic position. The out
standing fact is the revelation by the
latest Reichsbank returns that during
the final week in March paper money
circulation was increased by the un-
preccdented sum Of nearly 5000 ,oO0, 900
marks. Down to tho end Of 1921 the
weekly emission OF notes never ex-
ceeded 5,o0O,000,000 marks.
The recent accelerated activity Of
the note printing presses without
doubt is due mainly to the stringencv
of money, which has been complained
Of generally. On this account the
banks are not inclined to rediscount
treasury bills by which the govern
ment covers it. current deficits
While this flood of paper money is
very disquieting symptom. there are
many other fresh signs suggesting the
undiminished prosperity of German
industry. Monthly digests and reports
of the Prussian Chamber of Commerce
complain that a shortage Of some ma
terials was still felt in March, but
they say little of any lack of orders.
1T is noted, however, that the demand
for home consumption is larger than
the demand by exporters, because the
depreciation of the mark has brought
German markets close to the world
level.
The active balance of $500 .Ooo,oo
paper marks shown by Germany's for
eien trade in February is deceptive, as
the quantity, both of exports and i'm
ports, diminished and onlv the value
increased, compared with the previous
month. And for the whole period from
May to the end of February foreign
trade showed a passive balance OF
$500, 600. 600 marks.
The official labor report admits that
during February "the signs pointed in
the direction of increasing employ
ment' This is a disappointment to
those pessmists who, in the slight de
clines Of the two preceding months.
saw moro than an immineNce OF the
long predicted crash. Nor can they
find comfort in the announcement that
OhlN "S9 masterpieces were regis
tered during the first quarter of the
year. To lend this fact it's proper sig
nidcance it should be stated that in
1919. year Of great prosperity, nearly
$4,000 bankruptcies were entered in
this country.
That some German industrial firms
are still looking into the future with
confidence is shown by an increase in
capital Of the Bergman Electrical
Company from 100, 900 600 to 165 ,000,-
600 marks. This is due. the press
states, not to fears Of further devalu-
alton, but to projected factory exten
sluus.
Nevertheless grave difficulties are
undoubtedly Immediately ahead The
official index number for the cost Of
living rose from 1889 in February to
@3o3 in March. The increase since
January has hccn more than 40 per
cent. Although the rise IN the whole
sale price Of corn seems TO have been
checked, authoritative forecasts for the
hog crop are not so favorable as last
year.
An obstinate struggle is going on in