davidaulloa/AmericanStories huggingface dataset:
New-York tribune., 1922-10-16
German Edict
Fails to Halt
Marks k'slsecline
Little Hope Placed in Sow
ernment's Move TO Chec.
Speculation; Decree Too
Late To BE of Any Benefit
Other Measures Needed
These Include Reduction in
Preparations Obligations,
Moratorium and Loan
spccici cable TO The Tribane

Copyright. 1922, New York Tribune Inc.
BERLIN, Oct. 15,The most inter
esting financial event Of the last week
was the governments drastic order
forbidding speculative operations in
foreign exchange, promulgated as q
desperate attempt to halt the catas-
trcphic decline in the mark, which at
the time the order was issued had
ioached the new low record of 3,1oo to
the dollar. w
In financial circles little hope *
n4aced on the governments action
mic the mark showed slicht improve
ment 1or twenty-f9u9 hours followin
n.omulgatlon OF tie anti-sDecu1ative
decree it resumed it's decline immedi-
ately after, and at the moment of writ
ing stands again between $500 and
1900 to the dollar. First of all, the
government decree came too late, for
the mark has now reached the condi-
ton where it is hardly possible to halt
lts decline without more radical meas
ures, which, however, is not in the
power of the government to take
namely, substantial reduction in Ger
many's reparation obligations, a long
term moratorium and an international
lean.
Secondly, it is pointed out that the
governments order is bound to pro-
duce in the end the opposite effect to
that intended by driving speculation
into underground channels, where it
will not be under control and will drive
the mark further down. This has been
the experience of Russia, Poland and
Austria, where similar orders had pre-
tisely this effect. Even should the
government succeed in stemming in
land speculation, it is not in position
to extend control abroad or prohibit
! orders for German currency from
abroad
AS matter of fact. large share of
the recent speculation was done by
Germans outside Germany, principally
in Amsterdam and Vienna. So. long as
this continues the mark will keep on
falling in the New York and London
markets. The governments other pro-
posal to issue bonds to the total of
40O,000,000 gold marks in 50O 1000 and
1000 mark denominations, these to be
sold at par and redeemable at a per
cent interest in eight months either in
! foreign currency or on the basis of the
marks standing at thsS close of the
| eight months period, has likewise in
| spired little confidence.
This move is intended to halt the
wholesale purchases of foreign cur
rency by German manufacturers and
i business men, who fear the continued
devaluation of the mark and wish to
protect themselves against the con-
| tinued rise in the cost of foreign raw
materials. The real root of the trou-
BILE, however, is indicated in the latest
report of the Reichsbank, which shows
an issue Of more than 27 1000, 900 on
October /, with total paper circula-
ton of s344,000, 100000 marks. At this
rate the total floating paper must reach
| 100000 100000 marks within a few
weeks. and il is not difficult to foresee
the effect this will have on the posi-
tion Of the mark