Evening star., 1923-10-17
BY SEYMOUR b. CoNGER.

By Cable TO The Star and Philadelphia Public
Ledger. Copyright. 1928.
BERLIN, October II. After long
months of discussion Germany has
launched its currency reform plan
and a desperate race against time is
now on to determine whether Ger
man government finances can be
saved or the state must go into hope
less bankruptcy.
The sensational feature of the plan,
from the popular viewpoint. is the
contemplated slaughter of ciphers on
the present paper mark currency.
This remains legal tender, but the
minister OF finance has it in mind to
knock off nine ciphers from the de-
nominations, If mark exchange should
be about where II Is now when the
smoke clears away. thus converting
the present 1000, 900, ,0o0-mark note
into simple one-mark.
The result of the reform plan de-
pends on the governments ability to
bring the budget into balance within
the short period OF grace allowed by
the new banks loan of 100000 900
Of the new marks-roughly, 100000
000-to the treasury. and this. in turn,
depends not only on how quickly
and thoroughly the governments pro-
gram of economy and gold collection
OF taxes can be put into operation,
but also on the extent to which the
treasury Is drawn upon for coal pay
ments and other reparation purposes.
Must Use Strict Economy.
II the cabinet fails to cut its coat
a. gzkA
by discharge of all superfiuous Off
cials and employees, by elimination of
the giant railway and postal deficits
and by boosting the collection of
taxes to the level of its bills before
the $500. 600. 900 loan is exhausted.
inevitably as the present paper mark.
The vicious process OF borrowing
from the Reichsbank and paying bills
with the printing press. which is to
be abandoned when the new bank
comes into operation. must then be
goes the way of the old shattered
public confidence will make II difficult
to try another experiment without
going through the forms Of full bank
ruptcy.
What n task confronts Chancellor
Stresemann and the cabinet. even
with all the dictatorial powers con-
ferred by the enabling act just
passed. may be realized from figures
furnished by the chancellor's news
paper organ to the effect that gov
+, ernment expenditures have lately
been running at the rate of 1.50O.-
| 600. 900 gold marks a month. while
receipts. as is known, have been
barely per cent Of that amount.
Waste of Resistance.
A large share of the expenditure is
represented by the waste of passive
resistance. and a large part of that
expenditure will have been eliminated
by the end of this month, when the
printing presses are supposed to cease
manufacturing paper marks and
governmental borrowings from the
Reichsbank are to end. Some of il
will remain for months and the ma
ton probably will have to drag along
under a heavy aftermath of unem-
| ployment charges and food relief
! throughout the winter. On the other
side of the ledger. great hopes are
placed on the collection of taxes on
gold basis, now coming into effect.
| The influence of this will. however
| show in the total revenue with dis
| appointing slowness, just as the full
| effect of. governmental ecouomies
| will not be registered on the balance
| sheet Immediately after the ak is
| swung.
| To add to the difficulty of Strese-
| mann's task, the government has just
sacrificed about Is per cent of its