New-York tribune., 1922-11-12

s,ne observers have charged that it
/. Germany's financial policy since the
of the armistice which has
attributed largely to the depreciation
4 German exchange. But admitting
sis as g real factor, the outstanding
auss of Germany's financial elephan-
.ssis still remains-the worlds lack Of
,spsdence in the future of q country
surdened with the financial and econo-
,;c obligations of the Versailles
isaiy.
Y.rk Continues to Drop
,s Lack of Faith Increases
lis this increasing lack of con-
sa,uce in the stability of the new
s,jsr Of things in Germany and in the
smtinued normal operation of her in
dvssy which has been sending the
surs down in London, New York,
amsterdam, etc, which, in turn. is re-
a.,tsi UPON the Berlin Bourse. No
rco d international bankers will
undertake to float large loan for
,ssrr those currency is bound to
i,assste in proportion as it seeks to
HM@ obligations.
N group of international flnanciers
"a giant loan to country with
tsh paper circulation approaching
M,N0, ,000 ,000 and only t,000,000,0o0
i, gold to cover it. Against the
$4,000, 900 gold marks constituting
II gold reserve, the Reichsbank is now
suing new paper at the rate of
10000, 10000 marks monthly. Every
new issue of paper money carries with
# automatically another decline in the
value of that paper and q correspond
ing increase in prices. 1t marks also
mother step in the impoverishment OF
the masses OF the people, for however,
regularly wage increases may follow
in the wake of mark declines, they are
never sufficient to cover the relative
rise in prices. A German, who has
1900 marks put away to-day, wakes
81 tomorrow to find the 1000 marks
worth only 500. That is why saving
is out of the question with the German
masses. They must spend all they
earn, if what they earn is not to
iepreciate 80 per cent in value over
night
The depreciation of German eur
fsasy has, to be sure, stimulated the
Gefnsn export trade, kept the indus
irles busy and virtually eliminated un-
enplcymsnt But the advantage in
G0lEed herein is purely illusory, for
The continued depreciation of exchange
nas brought with it the continued per
sstent impoverishment of the masses
ay consistently diminishing the real,
ssngibe value of their earnings as con-
TASTED with the consistent, kaleidosco-
PIC rise in prices.
The cheap cost of production which
mas enabled German industry for the
past three and half years to compete
SUCCESSFULLY in foreign markets has
0sen maintained entirely at the eN-
pense OF Germany's cheaply paid labor.
Inc manufacturer and business man
eaeaged in foreign trade receives pay.
aent IN stable foreign currency or cal
saiates payments on the basis of fore
90 currency. The worker is paid in
issnlan marks. German labor has
Aefefore, been working for the worlds
4sfSets during the last three and q
al Years at wage far below the
aahdard of progressive industrial
Countries.
sesman Masses Are Paying
aaermous Reparations Bill
y is the German masses, therefore,
5ao nave been paying the reparations
~ and not the German Schwerindus-
s' which formed such an important
AA IN the chain of European economic
psfiasism responsible for the war.
tespondingly. it is Allied labor and
sfy suffering under unprecedented
nployment as result of the COM
ss's'on of cheap German labor which
's contributed to the payment of the
ssaeions bill in wages and profits
s. as result of this unemployment
s industrial dislocation. The result
=. s0s only the impoverishment of the
asn masses because of an ilIusory
ssapefity, but the economic impover-
H. . OF the industry and people of
,a,, easlre world. That is the sum
n,ss u the effects of the economic
rs.sons Of the Versailles treaty.
i c .epafations bill is not being paid
as ,nahy a.. alone. It is being paid by
''sa peoples as well. by under