The New York herald., 1922-10-23
LOW MARK IMPERILS
LUBERSAC COMPACT
Endangers Franco German
Enterprises by Reducing
Ability to Pay.
speciot cable to THE Nuw YORK HERALD.
CopUi0ht, 1879, by THE New YORK HERALD

speciot cable to THE Nrw YORK HERALD.
COPYRIGHT, 1879, by THE New YORK HERALp
New York Herald Bureau.
Berlin, Oct. 22.
The fall in the mark again dominated
business last week. Although the fall
was momentarily retarded by the Gov
ernments measures against speculation
in foreign currencies, the slump was
greater thereafter. There were wild in
creases in stock quotations, some ex-
ceeding 1000 per cent. over night The
reasons for the slump in the mark and
the rise in stocks are numerous.
Spectators who bought dollars turned
their activities from domestic to foreign
securities Because foreign currepcics
have disappeared from public exchanges
there is a demand for foreign money
which forces down the mark. The fall
of the Lloyd George Government re-
acted unfavorably on the mark.
Tho Reichsbapk's outstanding debt Is
$4,000, 100000 marks, of which 10000
100000 were printed last week. The
Reichsbank continues to follow the old
policy of throwing small quantities Of
foreign securities on the market at criti
cal moments to check the drop in the
mark, instead Of using part Of the
1.000,000,000 marks gold reserve to
check the drop In the mark definitely
The Reichsbank proposes to withhold
this gold reserve to be used ultimately
in bringing aboJt currency reform, un-
less forced by revolution and hunger
TO disgorge. The Germans do not know
what their own exports and imports are.
Herr Buecher, head OF the National
Manufacturers Association told THE
NEW YORK HERALD correspondent that
there Is an unfavorable balance now,
but statistics would indicate that during
the last three months the exports were
larger because the imports were made
when the mark was higher.
For the first time Germany is inn
porting more steel than she is exporting.
-be textile industries are meeting only
their daily needs because of the absence
of credit. Prices doubled from the mid
die OF August to the beginning of Oc-
tober, increasing SO per cent. i'm Sep
tember alone. The wheat crop is one
third what it was last year, while the
potato crop is nearly double.
Although Hugo SHINES and Senator
De Lubersac have concluded the details
OF their contract at a meeting in Ber-
lin last week for the deliveries OF ma
terials for reconstruction purposes in
France. German political demands and
the fall In the mark raise new obstacles.
Senator De Lubersac said that he l.
convinced after his interviews with
SHINES and Chancellor Wirth that they
have found practical way to reach a
Franco German rapprochement. Already
the Germans are beginning to make de
liveries of building materials and ne
gotiations are under way for the de-
livery of large quantities OF German ag-
rlcuitural machinery to the farmers In
the devastated region. Hamburg man
ufacturers have formed company to
deliver coo. 900 francs worth OF ma
terials to France.
But German manufacturers demand
the withdrawal of French troops from
the Rhineland and the Sarre Valley as
the price for German industrial collab-
oration. This irritates French Govern
mental circles and has contributed TO
the postponement OF the proposed visit
OF German manufacturers and indus
trial leaders to the devastated area
which had been planned for this month.
Herr Buecher said he suspects the
British are responsible for a. Franco
British compromise by which the French
agree to move slowly for a few months
in their Industrial rapprochement with
Germany. pending the possibility of
American participation in n reparations
settlement. II this Is not forthcoming
then the British, IL is reported. agreed to
give the French 4 flee hand in exploit
ing Germany.
The slump In the mark seriously en-
dangers Franco-German enterprises be-
cause 1t reduces the German Govern
ments ability TO pay. Should the Ger
man Government cease payments en-
tirelyi then the Franco German recon-
strucdion project will collapse Most OF
the German manufacturers are eager to
bring about reduction in the repara-
tions demands and do not see the dan
gers OF their failure to stabilize their
own currency. They shosih at least
have made sacrifices 20 keep the mark
stable till the next reparations payment,
in the opinion of Frenchmen who have
been behind these transactions.