Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1922-08-27
By STUART p. WEST
sssciai Correspondent Of Crest FaIs II.pun'
Copyright. 1922. By The Great fAlis irAouno

Cnr,rdsht' Isas' BY The Great Falls Tribune
New York, Aug. 26.-The foremost
onestion in world finance is still the
German collapse and how far it will
involve the outside markets. so 1ar
conditions in the United States and
Great Britain have scarcely oeen
touched at all. The German marx:
without the least ground for nope OF
a turn. has not openly affected Amer
ican financial operations at any stage.
Neither has it's influence been felt in
Rritain,s economic recovery. Sterling
exchange again this last week has stood
I'm strongly against the decentralization
In continental rates; it is quoted even
now within four cents of the years
highest and it is up 20 cents from
where it stood at the beginning of
1922, when the German mark was
worth 6 800 Of a cent against less
than 5-1O0 of a cent as it is at present.
French Exchange Loses Again
Possibly it is not yet a conclusive
test. but so far as it goes, it does sug-
sest that fears Of what would happen
10 the rest of the world with Germany
an ayowed bankrupt have beer a good
deal exaggerated. The most serious
reaction has naturally occurred IN the
French financial situation. The break
III HeTIldn GANIuh6S
few days has been more violent inan
the break in French exchange, where
not only the entire improvement OF the
wear had been lost put Is back to Wnere
Ii stood last autumn. In 1act N no
week vet have French anc SHOWN
themselves so sensitive as the German
%collapses.
French Policy Deemed unwise
What will happen if France carries
out her threat and seizes the German
forest domain and the great coal
mines of the Ruhr? The answer 10
this question is that outside OF franc
banking opinion Is that the Gnltea
States will do the good expected. that
4 will bring in the indemnity funds
absolutely necessary for Frances sal
yation. 1t is the misgivings which are
expressed in the decline IN trench
exchange. This decline is not due, as
is the fall in German marks, to the
panicky selling of holders of the &C
tual paper currency, 1t SIMPLY repre-
sents a lessennig of the creoit on
France in outside terrltory, osousnt
about by Frances own policy or torc..
inc Germany to the wall instead OF
Joining the other countries in a con-
certed effort to keep the former
enemy on her feet.
No Limit To Mark Depreciation
Sooner or later the stage Will be
reached where Germany, either yolun-
tarily or involuntarily, will endeayor
IN raise money by outside loans Sc
cured by specific national assets.
How much will be accomplished by
this means is doubtful. Foreign
credits granted in similar manner TO
Austria were exhausted win arrestns
fine downward flight of the Austrian
crown. Germany has much larger re
sources for obtaining credit, but her
need for credit is much greater.
While there does not seem at the
moment any limit to the depreciation
in German currency, if, with or with
out the backing OF the reparatlons
commission, France steps in and
seeks to reform the German fiscal
arrangements and stop the emission
of paper note issues, the outcome VIII
still be extremely uncertain. But III
the meantime, apart from France, and
to a much less extent, Italy and bel
GUM. there has been no sign OF I'M
easiness lest the troubles of Germany
Rave serious results outside.
BtumInous Coal the Real Factor
Settlement of the coal strike was
not followed as anticipated, by an
amicable arrangement with the hard
coal miners. The shipments strike,
which a week ago appeared IN a 1slr
way to adjustment, is now to be
fought to a finish. The reason why
these developments, on their face I'M
favorable, have not affected the mar.
kets more is that the resumption OF
soft coal mining is the big thing IN
the situation, besides which the hard
coal tieup and the Justification OF the
railway shopmen are of minor con-
sequence.
With a full bituminous output there
will be no interruption of the indus,
trial life Of the nation. Soft coal Will
have to fill many Of the uses of hard
fuel during the coming winter, but
beyond a certain amount of personal
discontinue no consequences are
threatened from the continued suspen-
sion of anthracite mining that are at
all comparable with what would have
followed another month Of shut down
in the soft coal fields.
So. too, with the railway strike. II
has not caused any curtailment mus
far in the freight movement. The flg-
ures on weekly car loadings make tins