The New York herald., 1922-12-26
HIGH MARK Is DUE
TO SPECULATION
Germany Revising Income Tax
and Preparing Scheme
for ReparatiOns.

Special Gable to THE Nnw YORK HERALD.
Copyright, 1929. by THE New York HERALD.
New York Herald Bureau.
Berlin, Dec. "a.
Germany has come out of the most
critical week financially that she has
experienced since the war. apparently
little the worse for wear. Analysis of
the entire business situation, aside from
rising prices in all commodities. shows
that the extraordinary boom In ex-
change left no traces to prove II had
its origin in other than speculative
raid The demand for securities on
the Boerse resumed normal proportions.
the gains for one quarter being offset
by another. The sole exception was
Government bonds. which scared sky
ward during the week. settling but
slightly with the return to normal con-
ditions.
The great rise of the mark Is still
matter Of the deepest mystery; but II Is
the chief topic Of conversation in the
business world. There is a tendency to
ascribe it to American holders of Ger
man currency; but others point out that
it is a hopeless> task to, put the mark
down at the level at which most Ameri-
can holdings were purchased. Others
accuse the Reichsbank Of a bull move
ment for the purpose Of amassing gold
for the payment of the January Is rep
arations delivery. and also the 100000
marks gold fine for the attacks upon
allied officers In Bavaria. The most re-
liable circles, however. insist the move
nlent is mere wave Of optimism.
Governmental machinery was occu-
pied last week with the revision OF the
country's clumsy income tax. lifting the
smaller wage Garner and making the
range of progression less steep for the
larger fortunes, at the same time not
decreasing the annual proceeds. Aside
from this Chancellor Cuno has been
laboring with the financial and indus
trial factions to obtain backing for pro-
posals to be submitted to the Paris
Premers' conference. The first draft
of the scheme agreed to by all parties
was made Friday and will be submitted
to the Reichstag during the holiday
week. Confidence that DR.. Cuno is act
ing in closest touch with his American
associates has given a Strengthening in
fluence to all lines of business.
The prospects Of relieving the hous-
ing shortage by building next spring
became gloomier last week as result
OF tremendous advances in building
materials, especially timber. on account
of reconstruction activities in France.
The firms engaged in the project. with
the exception of SHINES. have formed
a huge merger to control materials. and
as a result lumber. which already was
above the world level. has taken an
other steep rise. Danzig and Hanover.
faced with the necessity for municipal
construction, issued an internal loan
based upon grain as security. a system
that was duplicated in the Ruhr by
loan with coal as security.
The labor situation is little changed,
unemployment increasing slightly In
districts where small industries have
been forced to close for lack of capital.
The National Economic Council still is
debat ting the eight hour day. The oppo-
sition has been practically won over,
labor forcing a forty-eight hour week,
while the eight hour principle theoreti-
cally has been retained.
The Armour Grain Company has en-
tered into an agreement with the United
Foodstuff Manufacturers of Germany
for the expansion of food production in
this country.