New-York tribune., 1922-08-21
Berlin Blanles
Outside Selling.
For Mark 5 II all
~ vorwaeras'' Suggests That
Currency Held Abroad
BE Redeemed With Gold
TO Relieve the Situation
Capital Shortage Is Felt
Allied Politics Believed To
BE Responsible for the
Slump ON Foreign Marts

BERLIN, Aug. 90 (By The Associ-
stad Press ~. Heavy unloading of
marks abroad is the sole cause Of the
present collapse Of German currency.
ii she opinion VI financial writer's here.
s~hc concur in declaring that there is
no cogcnt objective" reason for a
stampede il Germany's present in-y
ternal situation, and therefore unite in
ascribing TO the international political
situation the real reason for the slump.
In support of this contention they
cite the fact that the collapse of the
London conference sent the dollar rate
a. : thousand, and assert that the
krercn attitude accomplished what the
London deadlock merely stipulated.
It Is further pointed out that the gov
ernment for more than a month past
has not been purchaser of foreign
currencies. as no reparations install
mcnss have been paid, while the part
payment on clearing house obligations
Represented funds which were secured
weeks ago.
Government Utterly Helpless
It il also asserted that Germany has
not bean buying gold for wheat pur
chases abroxa German experts admit
that the government is uttedly helpless
in the face of recent developments,
that 1t is wholly at the mercy of
nestiie forc,ga policies and that any
sA ~ II trr
aitiatiye to bolster up the mark a1t:-
hcially in the present political atmos-
rhcre would be bound to prove dis
astrous
.There is no tangible economic
ground for this unprecedented depre-
ciation,n says the "Boersen Courier"
which declares that the nations in
dustrial productive capacity continues
urimpaired, while the mere fact that
imports exceed exports SIS hardly q
cogent reason why the world should
abandon Germany"
The "Boersen Courier" also fails TO
discover in the reparations payments
an immediate cause for the marks
preBent level, inasinurh as these pay
ments have been plainly designated for
year or more and must be met In ac-
cordance with GerInany's capacity 1t
believes that the marks fuctuation is
primarily a psychic or psychological
process, and that the fact that the
mark Is unstable and capable Of slip
ping suffices to produce violent drops,
determined and augmented by policies
which constantly threaten penalties
and other economic punitive measures.
Currency Shortages Dire Effect
The prevailing shortage of circu-
iating currency within Germany is en-
phasized by several writer's as one of
the most menacing effects of the pres
ient slump in the mark. "Vorwaertsv
suggests that the Reichsbank forthwith
proceed Co gather in the paper marks
held abroad, which now constitute a
heavy percentage Of its total issue. The
Socialist organ declares that the pres
ent gold volume of the total paper issue
Is insignificant to the pre-war ratio,
and advances the theory that the
Reichsbank, through the aid of gold
able to coax back 250,00G, ,00o, ,0oo paper
marks assuming that it would be able
to buy them up at to-day's rate
1t doubts whether that much Ger
man currency is held abroad, but as
serts that the amounts are undoubtedly
excessive and represent a circulating
medium which is badly needed at home
at the present time. The shortage of
liquid money is becoming more acute
daily, in the opinion of other financial
editors, who call attention to the fact
that the government yesterday APP
, proved civil wage increases totaling,
l,2o0.000,000 marks alone.