The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1922-01-15
GERMANY'S MARKS
FLOOD LITHUANIA
Citizens Would Substitute
Own Currency for Bad
Paper.
costssssd from Page Po.r.

eurrency-rsform; he realized the
economic necessity of breaking
DOWN the embargoes and CONNER
ctai barriers between the European
states, especially between the Sue
cession States OF the old Austro-
Hungarian Empire. Don't send
Us money" he said to Americans;
help US to get economic freedom"
When NJ Hegedus took hold OF
Hungarian finance IN February, the
Hungarian crown and the Austrian
crown were Of about equal value In
International exchange; they both
stood at about 500 to the dollar.
when he took Office. Hegedus said
that, In six months, he would force
the crown to . value of $50 to the
dollar. (5ome Americans believed
him and made some money there
by0 BY May, he had almost full
fned his purpose. Although the
Austrian crown was still 900 or
more to the dollar, the Hungarian
crown had risen to be worth three
or more Austrian crowns, and was
quoted at 200. or even q bit below,
to the dollar. But this was too
good to last Hungary was not
strong enough. or not financially
and economically enlighten ed
enough to adhere to NJ. Hegedus'
program. The lure OF the easiest
way Of balancing budgets-the
printing press-was too strong.
Hegedus stuck IL out until October;
then he resigned In August, the
crown had been about 400 to the
dollar. At the time OF NJ Hegedus'
resignation Il was about $50.
Hungarys present financial out
leok was recently set forth by DR..
Frans Rover. Of BUDAPEST, writing
In Piutus. DR.. Rover said, In part:
Although the resignation of NJ.
Hegedus took place over six weeks
try "a sti1l under the influence of
his activities. One Of his main aims
was to shut down the bank-note
printing-presses. in order to check
the constantly increasing imitation.
Thereby the note-issus Of the coun-
Try was interrupted In the course
Of the current year, and has
amounted since then with q few
ductuation to about 10000, 600. 900
CROWN DR.. Cover then mentions
the industrial lethargy in Hungary
ana the low price of-securities rel
alive to the great Increase in money
since 1914. the price Of securities
being very low in dollars as COM
pared with before the war. He saws
Hungary needs buildings badly. but
the building trade is stagnaut He
then continues: There are, how
ever, signs OF an Improvement of
conditions at no very distant date.
Since the fall Of he finance min
lister II has become apparent thar
one OF his leading financial schemes
has become impracticable, viz. the
closing-down of the banknote print
tng-presses- Thereby one OF tbs
most burdensome financial obstacles
WIN be removed. The deficit of the
budget. estimated at 5000, 600. 600
crowns, and since become consid-
er2bly larger, has to be covered by
new note issues, and, owing to this
Measure OF compulsion. Hungary Is
again treading the path of infia-
tion- In this way the evil finds a
temporary remedy, but at what a
price. The '.perpetuum mobile" OF
the printing-presses Is set going
again. and It Is impossible to see
how to put an end to>the obJec-
tionabie results. Owing to this step,
Hungary finds herself at the brink
OLA steep descent. and when she
sssee starts down IL nobody can
predict when she will be able to
stop"