The Birmingham age-herald., 1923-03-31
GERMAN EARNINGS WEI ERE SHADOW 0F PRE-WAR PERIOD
Traders and IndustrialistS Alike Experience Hectic .
 Year in Business

BERLIN, March S0-(Bv Mail to the Associated Press. )-German trade and industry close the fourth calen- dar year following the war with a feeling that though much water has flowed under the bridge. little has been salvaged from the rush and swirl of the current. Factory chim- neys smoked steadily and machinery h m m d briskly during 1922 throughout the length and breadth of the land. yet the marks catastro- phic depreciation made earnings shadows of what they were for merly.
 As the new year opens, the cry goes up from all sides for a stabili- ation of German currecy. Traders and industrialists alike liv d through hectic twelve-months in 1922, owing to the marks fantastic fluctuations. It commenced at ap- proXim ately 190 to the dollar in January, mounted gradually to 457.50 in July, then went on a mad rampage averaging 1,160 in August and reaching 5000 and higher in November. con January IS. the mark was quoted in New York at over 23.000 to the dollar.)
 These wild maneuvers so upset
 
 a nook in the national economic structure was left untouched by the uncertainty in wholesale and retail investments. A vicious feature ap- peared in the tendency to quote prices in the steady, high-valued currencieS of other countries, such as the dollar and pound sterling. A natural reflex to the marks con- tinued fall was proportionate rise in the cost of supplies. Gradually the practice grew of passing quota tions to the buyer, not on the cost of actual production, but on what it would cost to replace the article in the sellers stock.
 Cost of Living Increases
 Taking the figure l, as basis for the year 1913, the official index figure on costs of living, exclusive of clothing, rose from 1850 a year ago to 40047 in November The wholesale index. reckoned on the same basis, went from 34S7 last December to 566.01 in October
 In many quarters abroad the Ger man currency depreciation was at trlbuted to purely financial causes resulting from artificial imitation, rather than to, economic conditions, as German experts claim. The lat ter support their belief by pointing to gold reserve of some 1 1000, 0OO.- 900 marks in the Reichsbank, suffi- cient to cover doubly the paper cur rency in circulation. They further call attention to the fact that, when ' no new notes could be printed for ten days in October, due to a print CTS strike, the mark continued to fall in the exchange rates, despite an acute shortage in currency.
 From the German point of view tfe monetary depreciation is a re. suit Of Germany's trade balance. Int surplus or Imports over exports grew constantly larger throughout tn, year. This lopsided state of affair: came fully to light when the gov, ernment began issuing the figure: on international trade in terms ., gold marks. Previously these re- ports had been quoted in paper de. nominations, and an activity favor. able to Germany sometimes appeared cnly 10 prove illusory later.
 Surplus of Imports
 The total surplus of imports owe, ] exports in the 10 months ended witt October amounted to 1,S59,7OOOO, gold marks. being the differnce be. tween 5,074, ,400.000 and 3,214,70O, In January the surplus was 5.S mil lion gold marks and in February 61.I million. With March. it jumped t, 239.l million and in October was 2S9.1 million. The highest surplus for any one month up to that tim, was 364 million in July. when tn. | imports went beyond the 566, ,OOO, O0t mark for the first time, amountins to 6S4.S million gold marks.
 In addition to this passivity, there was falling off in the yield of Ger. man investments abroad-this hay. ing exceeded 1,500000,000 gold mark. before the war-and an increasins amount of interest to pay to foreigr investors in Germany because of new property acquired by them here.
 The export trade suffered greatl, through factors indirectly throwr into the industrial situation by tn, marks depreciation. Price of ma terial, which jumped sensntionall, from day to day. made it impossible for German factories to bind them selves with fixed stipulations for de liveries very far in advance. The. also had to deal with frequent de mands for increased wages. broueh on by the higher costs of livini among woykmen. As Q result of thsi,