The Washington herald., 1922-01-15
Strange State of Currency j..
Now Exists In Lithuania
Use of German Marks by New Nation Brings
About Taxation" By Former
Allied Enemy.

The currency situation in Lithu-
ania has been and Is an anomaly.
Instead of issuing a currency of its
own-a paper currency il would
have been, of course-the Lithu-
anian government chose to employ
German marks-as currency. Ger
many put in circulation during the
long German occupation during the
war hundreds of millions of the So
called lost marks" or least marks. =
As these had become the standard
currency of Lithuania and had. OF
course. found their way into the
possession of the people, and as
they were guaranteed by the Ger
man Reichbank on the same basis
as German marks. the Lithuanian
government thought it just and
prudent to continue the use of the
ost marks as currency. But. mas
much as the regulation German
marks were of the same value as
the ost marks. the German marks
were, and still are, accepted in
Lithuania just as the ost marks
are.
The Lithuanian government. see
ing the alarming currency imitation
taking place in other European
countries, especially in Poland. de-
cided to avoid. the temptation of
the government printing press, to
which So many countries had fallen
victim, by not having any govern
ment printing press: that is. by
not having. temporarily. any Lith-
uanian national currency. Il was
sort of "get-thee- behind me-
Satan" latitude. In other words.
the Lithuanian government has
been compelled to balance its bud
get (hgured in German marks or
ost marks). making expenses and
income equal, because il refused to
make use of the printing press in
creating currency. Such difference
as there has been between expense
and taxation has been met by in
ternal loans. Since Lithuania
chose to use a currency it could
not initiate, it did not initiate its
currency. That was simple enough.
Lithuania, true enough, did not.
because II could not, initiate its
currency. but Germany did that for
Lithuania As currency imitation
is a form of taxation-an indirect
form, but just as real asS the di-
rect-Lithuania has been taxed by
germany, and. in proportion to
Lithuania's wealth, taxed heavily.
Last spring the German mark was
about sixty to the dollar. 1t was
estimated that there were in cir
cuiation in lithuania. at that time.
about 1.000, 100000 marks. So the
international exchange value of the
money possessed by the people of
Lithuania was, then, about sl6,-
~.sn-
about 200 to the dollar, due to cur
rency imitation by the German gov
eminent, those billion marks pos
sessed by Lithuanians are worth
about 100000. In other words.
Germany has taxed Lithuania about
S11,666.666 since last spring.
There are probably more than
1.ooo,000,o00 marks in Lithuania
now. As Germany has doubled her
currency since last spring, by the
simple method Of printing 1t, it is
probable that the currency in cir
culation in Lithuania has also
doubled. That would be natural, as
Lithuania is, from currency
standpoint. but an adjunct of Ger
many. But the 1000, 0e0, 00e more
marks in Lithuania--if there are
that many more there--haye come
IN In payment for goods or services
furnished by Lithuanians. While
the Germans have been getting
more marks by merely printing
them, the Lithuanians have had to
earn them. 1t is a tragic comedy
Lithuania gets. the money-the
paper money. which is really worth
no more in genuine wealth than the
half-amount she had before-and
Germany gets the wealth, Lithu-
ania claims a big indemnity from
Germany for physical destruction
during the war, for seizures of ami
mails, cutting Of timber. etc, and,
instead OF getting Unidentified,
Lithuania gets taxed.
Lithuania, at last, seems to be