The New York herald., 1922-10-02
The Vanishing Mark.
Business at the Leipzig Fair Done
on n Dollar Basis.

To THE NEW York HERALD: There is
only one stable medium of exchange in
the world to-day and all the world is
it openly At the great annual Leipzig
industrial fair, which has just closed, all
orders were booked on the dollar basis !;
$4,000 firms exhibited and orders were
taken for delivery we'll into 1928.
1t is not unusual for country with
an unstable currency to employ a-for-
eign standard. The Spanish milled dol
lar was long in use In this country be-
fore our currency got on its feet. Be-
fore the war the pound sterling was
the standard to which all the European
nations bowed. A pound would buy
more Continental currency proportion
ally than the dollar some years ago and
passed current at high value in every
land on earth.
In addition to loss of credit from ex-
cess of liabilities over assets, the fatal
malady that has attacked the German
mark and threatens its demise and final
dissolution is the printing press. For
this Erzbergcr was responsible he rele-
gated the budget system TO the attic Of
discarded governmental furniture and
belongings OF the old regime and set -np
the printing press instead.
1t is an interesting question as TO
Just at what point in its decline a de-
preciating currency becomes worthless.
Arbitrarily I should say that when the
mark deprecated beyond the point
where the paper and printing Of a one
mark note cost just one mark it lost all
value as currency. lost its seigniorage
even, so to speak. IL such term could
be employed In speaking Of paper cur
rency. Its usefulness as a medium OF
exchange may not have absolutely van
iehed but its value has become so small
a TO be almost negligible.
OF course the hairsplitter might ar
que that even II it took a basketful Of
paper marks TO buy a box OF matches
the mark might be said to have some
value. SO It might. But this would be
the value Of insignifcance. 1t would be
better to borrow a match and use the
paper marks to start the kitchen fire.
IL has even sunk below the dignity OF
the cowrie. the shell of a mollusk used
aa currency in large parts of southern
Asia and Africa.
AZ the present rate OF 1900 marks to
the dollar the mark has really ceased to
function. 1t Is a mere skeleton, devoid
OF thews and sinews or even flesh.
What Germany will ultimately have to
do. probably. is to abolish the mark al
together as a currency standard. adopt
another standard or call IL by differ
ent name. This has frequently hap
pened when revolution has upset ma
tion's equilibrium.
The mark itself Is only fifty years old
II was adopted along with the present
currency system In 1873, after the EN-.
pire had been consolidated and stabil.
lied. Before that the thaler was the
standard in the States OF the North Ger
man Confederation, consisting OF thirty
siIberrroschen and each groschen con-
sisiing of twelve pfennigs. After the
French Revolution the currency system
of France was changed. the old livrt
being abolished in 1875 and new sys'
tenn with the franc as the standard
adopted.
The volume of Germany's currency Is
now so great that its redemption !:
hopeless. And when faith Is lost, all i'
lost. Each decline in value requires
more currency In every transaction and