Evening star., 1922-08-21
DROP IN MARK LAID
!. TO ALIEN HOLDINGS
Berlin Paper Urges Reichs.
bank to Redeem German
Currency Abroad.
GERMAN CAPITAL SCARCE
Banks Cease to Advance Money
Due to. Hazard Involved in
Continued Depreciation.
GERMAN CAPITAL SCARCE
BY the Associa ted Press.

By the Associated Press.
| BERLIN, August 21.-Heavy un-
| loading Of marks abroad is the sole
| cause of the present collapse Of Ger
many currency, in the opinion of
! declaring that there is no cognent
| objective" reason for stampede
in Germany's present internal stu
| alton, and therefore unite in ascrib-
ing to the international political
| situation the real cause for the
slump.
In support Of this contention they
cite the fact that the collapse Of
the London conference sent the dol
lar rate to thousand and assert
that the French attitude accomplish
cd what the London deadlock mere
ly stimulated. 1t is further pointed
out that the government for more
than month past has not been
a purchaser of foreign currencies,
as no reparations installments have
been paid. while the part payment
on clearing house obligations repre-
sented funds which were secured
weeks ago.
1t also is asserted that Germany
has not been buying gold to pay
for wheat purchases abroad Ger
man experts admit that the govern
ment is utterly helpless in the face
Of recent developments, that 1t is
wholly at the mercy of hostile foreign
policies and that any attempt on its
part or through private initiative to
bolster up the mark artificially in
the present political atmosphere
would be bound to prove disastrous.
Depreciation Held Psychic.
The Boersen Courier fails to dis
cover In the repdrattons payments an
imm ediate cause for the marks pres
ent level. inasmuch as these payments s
have been plainly designated for a
cordance with Germany's capacity. 1t
believes that the marks fluctuation is
primarily 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 meas
ures.
The prevailing shortage Of circulat-
ing currency within Germany is en-
phasized by several writer's as one of
the most menacing effects of the pres
ent slump in the mark. Vorwaerts
suggests that the Reichsbank forth
with proceed to gather in the paper
marks held abroad which now consti-
tule uedfS percentage OF ltS total
issue.
1t doubts whether that much Ger
man currency is held abroad, but as
serts that the amounts are undoubt-
edly excessive and represent a circu-
lating medium which Is badly needed
at home at the present time The
shortage of liquid money is becoming
more acute daily. in the opinion %
other financial editors, who call at
tention to the fact that the govern
ment yesterday approved civil wage
increases totaling 1.200,0 100000 marks
alone.
Less Capital Available.
The absence of capital increases,
which formerly automatically ac-
companied each slump in the mark, is
wholly missing in the present crisis.
according to Hugo Shines Algemeine
Zeitung. which ascribes the reason to
lack of fluid capital, as the banks are
no longer advancing money because
Of the hazard involved In the con-
tinued depreciation.
The Algemeine zeitung asserts that
the public at large also is without
ready funds for investment but. on
the contrary, is disposing of its Sc
curities in order to maintain physical
existence.
THE marks fate may be sealed the
coming week." says the Taeglische
Rundschau. referring to the forthcom-
ing negotiations with the allied mis-
sion headed by Sir John Bradbury.
1t has little hope for permanent i'm
provement. In any modification Of the
allies policies. which, it declares.
would hardly suffice to undo the eco
nomic mischief French despotism has
accomplished by forcing the mark to
the present level"