The Washington herald., 1922-01-15

beginning to realize that something
is wrong. 1t has taken her a long
time. But, still without knowing
just why, she is noticing that the
fall of the German mark is hurting
her. 1t does rnot hurt Germany. be-
cause. as the mark falls, Germany
has more marks. with no added ex-
pense. Note this article recently
written for the Deutsche Allgeme-
inc Zeitung by its Kovno cor
respondent:
Nowhere outside the frontiers of
Germany Che might have left Ger
many outD has the disastrous fall
of the German mark had SO marked
an effect as in Lithuania, since
that country has no currency of its
own, and hitherto has used the Ger
man currency as a payment medium
both at home and abroad. The COL
lapse of the mark has caused I'M
precedented high prices in Lithu-
ania. Naturally. since Germany
has been taking out goods and
sending in markso The prices OF
all commodities. including agricul-
tural produce and foodstuffs. are
Increasing almost daily. The ques-
ton already induced by former
fall of the exchange rate of the
mark of establishing a Lithuanian
currency is now the subject of gen
eral discussion. and the popular cry
for the moment is Away with me
mark. currency" The demand for
West European currencies is very
large in the business world, and in
the course of the last month many
contracts have been concluded in
foreign currencies, especially dol
lars. The scheme for an indigene-
Gus currency finds its strongest
support in Lithuanian American
circles. Some in Lithuanian
American circles have lately been
occupied with a scheme FOX found
ing Lithuanian-American COM
mercial bank. and. in place of the
Indigenous currency, are suggest
ing the introduction of the Ameri-
can currency as the official cur
rency of Lithuania.','
1t was a moral victory on the
part of Lithuania to resist the
temptation of the printing press.
but it turned out disastrously, be-
cause Germany proved a weak reed
on which to lean. The only way
Lithuania could get justice from
Germany in this currency matter
would be a payment by Germany to
Lithuania. in stable currency or In
goods, of value equal to what the
German currency actually cost
Lithuania. That, of course. will
never occur. L.ithuania would. in
deed. act wisely IL she called in all
the currency within her borders.
sold 1t for dollars, and used those
dollars as a temporary currency, or
used them as base for her cur
rcncy of her own, which could be
handed out to the owners of the
German currency delivered.
Hunsary's Resolutions Fail.
Under the direction and dictatIon OF
Roland Hegedus, who accepted the
post OF Minister OF Finance in Hun
gary last February, Hungary had a
financial and monetary out
look. NJ. Hegedus, who was not q
politician but was a prominent banker
of BUDAPEST. agreed to take office
~ he could depend upon the backing
of the government in his financial
schemes and reforms. Given that as
surance. he took office and began at
once to introduce reforms intended
to give Hungary a stable currency
and a sound financial administration.
Immediately upon taking office, he
cut out a great amount Of needless
government expense and. at the same
time. introduced new and badly need
ed taxes, all with the intent and de-
Of balancing the Hungar-
ian budget and stopping the govsrn-
ment printing-press which had con-
tracted the European contagion of
printing, paper money. stop the
printing press" was Hegedus' chief
appeal He knew well the ultimate
Injurious outcome of . vast. cur
rency imitation. His plans for Hun
garian rehabilitation went beyond
Continued on Paoe Sir.