The Bamberg herald. [volume] (Bamberg, S.C.) 1891-1972, 1922-10-19
GAMBLERS LOSE.
Those Who Bought German Marks
Are Out Millions.

! cost Americans from a Dlll1On. 10 Two
billion dollars, writes Edward NJ.
| Thiery.
People are still buying marks and
other foreign paper money but the
big food of speculation suddenly
stopped few weeks ago.
Bankers report that buying was
going Oh in large amounts in spite
of their warning that purchase or
German marks was speculation and
not an investment. 1t is believed that
even the widest spectators have
now reached the conclusion that the
bubble has burst, wiping out dreams
of immense profits.
"Estimates of the amount OF
American money spent for marks can
be made better in Germany than IN
this country" said Dr.. B. NJ. Ander-
son, Jr.. economist Of the Chase Ma
tional Bank. t'I have seen estimates
of the Chase iedd,n( (S-eqSa. G.
ranging from s1,0oO,ooo,o0o to ST.
600 100000. Personally wouldn't
know how to guess.
National Loss is Large, But so D1ffus-
ed No Credit Problem is Created.
"Speculation in German marks has
been a big national loss, but it is so
diffused that no credit problem has
been created. know of no institution
or individual suffering serious loss.
stThe most serious thing about it
is the decentralization Of Germany
which the crash in marks indicates.
Decentralization in Germany is most
serious of course for her closer neigh
bors-France, Great Britain, Hol-
land, Belgium and the Scandinavian
countries it is very serious for
the United States also. Germany has
been one of our best customers and
a prosperous Germany is needed to
balance the worlds economic life"
DR.. Anderson pointed out that
while Germany as whole has SUI
fered very greatly in the financial de-
moralizat tion, a good many Individual
Germany Spectators have piled up
immense profits. Foreseeing the de-
cline in the mark, they borrowed
marks on great scale and used them
to buy foreign currencies-dollars,
sterling, etc.,-or to buy goods, COM
mon stock or corporations, and other
things whose value would not de-
cline with the mark.
After the fall of the mark these
speculators could sell small part or
their purchases for enough marks to
paw back their debts, retaining the
greater part of the real values they
had purchased. Hugo SHINES is sup
posed to have built up much of his
great fortune by this method.
Other countries have plunged in
German marks. Spain is said to nave
put 900, ,O00,OO pesetas into marks
by the end of 1920. :
As recently as last week an Italian
put s14O into German marks at the
rate of Z cents a hundred, receiving
200 900 marks (Which before the war
were worth s50,000.) At the New
York bank where he bought them he
was warned that he might lose his
$140.
"Ah!" he exclaimed, grinning,
sbut I may make a million!"
Bell Boy, Elevator Man and Doorman
Owners of Millions in Marks.
A small New York hotel has bell
boy. an elevator operator and door
man who own several million Polish
marks, a million German marks, and
several hundred thousand French
francs and Italian lire. .
Meanwhile reports from Germany
say that women there are protecting
their saving by putting doubtful
naper money into silk stockings
something they can sell later!
How widespread American specu-
lation in German marks has become
is indicated by a letter received by a
New York bank from small banker
=. rr., ,eb;no uhather marks were
"good investment" He was told
they were "long shot gamble"
Bankers believe granting the I'M
possibility of a recovery in German
marks, that they will either go so low
that they will cease TO be used as a
means of barter, or else there will be
Official reputation.
In either case American specula-
tors will have one or two billion DOL
Jor their