Evening star., 1923-08-03
German Bankers S,uindIed
Thousands in Sale of Marks
Gullible Investors, Buying Options on
Non-E.istent Currency at Gents,
~. Are Heavy Losers.

the marks themselves, soon resulted
| in an enormous demand for marks.
The question naturally arose as to
where the vast supply which was
| filling this demand was coming from.
The answer had been prepared. The
astute system of German propaganda
which had been worked so diligently
in this country on other matters of
International moment was in opera
tion. Throughout the country We're
private banking agencies, foreign ex-
change dealers and others, all ready
to talk vociferouSly of remarkable
conditions pictured as having de-
veloped in the export situation. Here
was the story:
Germany was prepared for recon-
struction and was going at the thing
in whole e-hearted way. She needed
American goods and had begun her
purchases in this market quietly, but
on an enormous scale. American ex-
porters, it was added, were taking six
month and nine-month bills pay
able in marks, and those bills were
being discounted, it was added. by
American banks. some of which were
sesling six-month and nine-month
options against those marks. Also.
1t was added, other banks were selling
the marks as received.
1t so happened that there were
enough of these transactions to make
the story plausible However, while
the steady outpouring of German
many people by these statements,
German agents were selling. along
with such offerings, vast stream of
marks for the clique in Berlin.
That the Berlin banking ring would
dare to make Germany betray the
confidence which she has built up so
| assiduously in trade circles through
out the world over a few decades.
and would dare to make n byWord of
the tremendously valuable item of
20 in da off fai
the financial powers of this country
and vast numbers of deluded enthu-
slasts in this country who had been
! buying options and marks had never
expected.
But now the swindling part of the
giant financial operation began TO
work and to work fast Germany
started the steady huge additions to
( her paper currency which were to
| stagger the world. AS the German
| torrent of currency the price of the
| mark began to tumble.
Many American exporters of COM
| modities and foodstuffs had sent their
thought to being quick on the trigger
/ in having their bills discounted, and
! found themselves receiving payment
| in greatly deprecated currency.
Most of the big international banks
with New York headquarters had in
no way been cooperating in the swim
| die of the Berlin plunger gang, and
several of them which had discounted
| bills for exporters without selling
| options or otherwise insuring them
| selves against decline of the mark
] found themselves similarly loaded up
with deprecated currency.
Mark Repudiated.
After the German printing press
| had kept up for two years the steady
outpouring of the paper currency
J Germany practically repudiated the
! mark a little less than two years ago
| when many of her exporters, acting
| for the manufa cturing division of the
vast line of operations controlled by
! the Berlin swindlers. insisted on
! American dollars from American and
South American purchasers
| In the gossip of the New York
! financial district at that time there
/ was rumor that the German bank
J ing group which had directed the
| main operation in the sale of marks.
| had on deposit in one New York bank
| alone an amount totalling between
| 75.000.000 and s2o0,000.000. all of
| which had been gathered solely in the
sale of marks.
Total circulation of German marks
at this writing is about $4,000. o00.-
100000 marks, a figure which stag
gers belief. If Germany really in
tended to acknowledge her paper
mark as an honest obligation, one
American authority on foreign ex-
change notes, she would have to cor
ner the entire gold supply of the
world to pay off as little as a trifie
more than > per cent of her debt.
The story of how the Berlin bank
ing clique unanswered the selling of
German marks in other parts of the
world besides America, before the
printing presses began to roar out
| the depreciation for that currency,
| is another chapter of the story. So.