The New York herald., 1922-11-26
By THOMAS II. DICKINSON.


In the return of Germany to a
normal standard of health and
productiveness prefer for the mo-
ment TO ignore such technical matters
as reparations. the exchange value OF
marks and the amount paid in taxes
by the German industrials and labor.
Peculiarly enough. I consider these to
be imponderable factors; they may
influence the governing factors. but
chance events both inside and outside
of Germany to support profitable
speculation.
Instead of these things I wish to
refer to certain matters which lie more
near to the life OF the people, to draw
from these conditions. which are Of
course but straws to show the way of
the wind, some hint OF the manner in
which German stamina is reacting
against the present desperate condi-
tions. At the present time no con-
clusions can be drawn as to the effect
Of the exchange rate OF German marks
upon the life Of the German people
for the reason that exchange has
passed into the realms of the absurd.
Manifestly one cannot say that cost
OF living has risen In any degree
commensurately with the rise in the
exchange rates. Such an increase
would long ago have wiped out the
German people. Even bread. which is
state supported, costs to-day a hun
dred times as much as it did in peace
time butter costs one hundred and
fifty times as much; potatoes two
hundred times as much. expressed In
terms of German money. How much
more do they cost in terms Of the
peoples labor. the peoples economy,
the peoples starvation? These are
the only true indexes by which to
come an absurdity.
When the statistical bureau Of tho
League OF Nations reports that on q
scale Of 100, representing prewar
values. the cost of living stands In
Belgium 367. Paris 291. Rome 415,
Great Britain 1S1 and the United
States 167, we can understand what is
meant. Common sense tells us the
figures are not far wrong. When the
same bureau tells us that cost Of
living in Poland has multiplied five
hundred and eighty times. in Austria
a thousand times and In Germany a
hundred times, common sense tells us
w h0 hA Af
the figures upon which these conclu-
sions are based the conclusions them
selves are nonsense. Money is a stand
ard of value in the same way that q
steel yardstick is a standard Of length.
1t is based upon gold for the same
reason that the linear measure is
based upon tempered metal. But II
for any reason all the yardsticks in a
certain area were suddenly made one
tenth Of their accustomed length, the
height Of men in that area would not
thereby be increased. While they
might be called sixty feet high, they
would still be the same size as before.
German People Living. but
Without Plan for Future
It is very far from my purpose to
imply that conditions are not desper-
ately bad In the countries named
above. 1t is my purpose to show that
these desperate conditions cannot be
represented by the altitude of the ex-
change rate. and that in seeking so to
visualize conditions we are failing to
grasp some Of the essential features
of the problem. 1t is not so much the
rise in the cost Of living that is the
important thing: The German people
are living to-day little more mea-
gerly. It Is true, but still they are liv-
ing. The important thing Is the dis
organization In German life. tho isola-
ton In German economy, the confu-
sion in the psychology Of the German
people, the lack Of an orderly ENVIRON
ment In which to plan for future Of
orderly development and reconstruc-
ton.
Before the war the German people
were among the most thrifty people in
Europe. To-day all incentive. even
all excuse for thrift, has disappeared.
No one VIII put his money into saw
ings banks when tho depreciation Of
month viii cut his deposits to one
quarter Of their former value. When
ono has money--and manifestly money
Is TO be had In wagon loads-the Ger
man has two. and only two. impulses
The one is tho purchase OF commodi-
ties. foodstuffs. first OF all. or mer-
chandise that may be later salable;
tho other Is gambling in tho Boerse.