New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1922-09-11
BY John S. Hecht, FIRES.
(From The London Times)

(FTons The London Tines
Germany is bankrupt Loo. at her
exchange; ever 5000 marks to the
pound sterling. On the other hand,
look at her flourishing Industries; the
thousands of millions of marks she is
sending abroad and spending in public
improvements; the luxurious life of
many Of her people! This hardly
looks like bankruptcy, and although
some bankrupts do manage to have q
good time while their unfortunate
creditors suffer Germany cannot be
both poor and prosperous at the
same moment. What is the explana-
ton Of this great mystery?
Money is said TO be the root of ~
evil, and certainly thinking in terms
of money is responsible for infinite
confusion. The economists tell us
rightly that money is not wealth, but
only a token therefor, even if they
frequently appear to forget this vital
fact themselves; consequently, we
must discover how the value of money,
or it's purchasing power, is really de-
cided.
Those who have been abroad during
the last few years may have realized
that there are two problems to be
solved. First, the purchasing power
of money in country, be it England,
Germany, Italy or Austria; secondly,
the same outside it. The traveller who
manages to live cheaply owing to a
favorable exchange rate does not
worry himself about the second ques-
ton. Hence we will begin with the
first.
The extensive use Of money In every
country to-day Is due to the necessity
for exchanging commodities, and the
latter to the universal division of
labor, since the industrial age. In
dividuals are no longer self-support-
ing as of yore. They produce one
thing only, and exchange their sur
plus of it, or often all Of it, for their
various requirements.
Production of Necessarfes
Let us begin by supposing the Ger
mans to spend their whole working
day Of ten hours in producing Just
enough to maintain themselves alive.
or produce their necessaries of life,
when they would be poor indeed.
Money being required for their ex-
change, the question arises "How
many marks should purchase the daily
necessaries of life Of the average
family 2" generally, five persons. CA
nation consists really of so many
average families, not of odd numbers
of men, women and children, and If the
bare necessaries only are produced, as
is assumed, each man with these de-
pendents must receive daily in re-
turn for his days labor sufficient
number of marks TO purchase their
needs, unless the population is to
diminish or deteriorate) The answer
is that the number Of marks ~ quite
arbitrary in the first instance. 1t
could be fixed at one, or thousand,
and were the days wages of man
with the average family, say, FIVE
marks, or 35 marks per week because
it is equally essential to live on sun
day., the purchasing power Of the
mark is decided. Thirty-five marks
will buy one weeks neceesaries Of the
average family.
Further, the price Of each separate
necessary, as bread butter, meat,
potatoes, sugar, etc, clothes, rent and
fuel, Is also determined; and by the
average production In ten-hour day,
FOR every worker, whatsoever his prod
net. whether he be growing wheat or
building houses, must receive shs same