The New York herald., 1922-02-20
MARK STABILIZED AT
ABOUT HALF A CENT
Berlin Experts Believe Rate
Artificial; Predict Rise in !.
Foreign Currency.
Special Gable to THE NEW YORK HERALD.
1892, BY THE New YORK HERALD
New York Herald Bureau

specia, Gable to THE NEW YORK HERALD.
Copyright, 1922, by THE New YORK HERALD.
New York Herald Bureau.
Berlin, Feb. 10.
The money market Is still under the
influence OF the "stabillzation" Of the
mark at about one-half OF a cent. Bourse
experts. however, are unanimous in the
conviction that the present dollar rate
is being held down artifically. They
predict a considerable and general rise
in foreign currency in the near'future.
The Reichsbank and German industry
now refrain as far as possible from
buying foreign moneys in order to avoid
further depreciation OF the mark.
1t Is known, however, that German
Industry needs foreign money badly In
order to meet obligations abroad. Specu-
lators likewise refrain from buying for
elgn money, but the situation Is con-
sidered to be anomalous, and it Is be-
lieved that it will change soon.
1t Is expected that the purchase OF
foreign currency by industry as well
as the forthcoming reentry of specula-
tors into the field will probably bring
about sharp rise in the dollar and in
other money rates.
Under the influence OF the almost sta
tionary rate of the dollar the Berlin
stock market has made itself practically
Independent of the situation In the
money market. While the shares OF the
different Upper Silesian companies con-
tnue to show a. tendency to rise, inter-
est on the floor of the Bourse now turns
more and more towards the shares of
other lines of industry.
1t is now an open secret that the wire
pullers who are causing the continuous
rise in Upper Silesian shares are the
French interests, which already have
succeeded in buying up the majority of
the Laura mining shares and those OF
other Upper Silesian companies. Local
interest, however, is turning more and
more toward the shares of German ma
chine and chemical plants, petroleum
companies and the textile industry, and
quite recently to those OF the different
sugar factories, the annual reports OF
which promise excellent business in
this branch OF German industry. Elec-
trical railway, car and automobile
shares are showing an inclination to
become firmer.
The surprisingly high dividend pro-
posed by the Hamburg-South American
Line has been the cause of a sudden In
terest in shipping shares. One OF the
latest signs of activities abroad by
financial circles Is the organization Of a
new banking and trading company In
Holland by the well known Berlin bank,
Mendelssohn & Co. This new firm in
Holland was organized with n capital OF
1000, 600 Dutch florins. The capital
was provided by the Mendelssohn COM
pany, another Berlin bank and by Brit
ish interests. The neW company will be
known as the Trading Company for
Banking and Trading Enterprises.
Relations between the Russian State
Bank at Moscow and two Berlin banks,
the Darmstaed edter Bank and the National
Bank Of Credit. have been definitely
established. Money transfers to and
from Russia form part Of the business.
The statement of the Reichsbank for
the first week IN February shows an
Increase in paper money circulation oi
1890. 900, 900 marks. the total circula-
tiou being 116, 100000, 900 marks. TIL
circulation OF treasury bonds increased
by 25.40O,000 marks, the total being
S,070900.000 marks. Germany's float
ng debt increased during the first ten
days in February by $780, 000, 900
marks. the total being 259137.31o. 900
marks. The increase is due to the rep
arations payments. the expense OF the
military occupation of the Rhineland
subsidies TO railways and the increase in
wages of Government clerks.