Evening star., 1924-06-08
''DANISH CURRENCY
!. SLUMP EXPLAINED
Editor Says Exchange Problem Of
Nation Is More Political Than
3 Financial at Present.
MADE PROGRESS DURING WAR
Situation Resembles That of
France, Says Expert.
MADE PROGRESS DURING WAR
BY GEORGE r. WHITE

CwrHFpondence of The Star and the Chicago
Daily News.
COPENHAGEN, Denmark, May 10
Denmark is facing the problem OF
stabilizing her money. In 1913 the
Danish crown equivalent to 26.s
cents) was exchangeable at 32t to
the dollar; now it requires approxi-
mately 61a crowns to bring dollar.
This development is all the more re-
markable, since to the visitor Den
mark appears to be economically
sound and financially healthy.
Denmark kept out of the war. She
did a huge amount of business dur
ing the war and gained through the
war by recovering North Slesvig
In an effort to learn why, in the
face of all these apparent advan-
tages, the crown has declined in
value l interviewed DR.. c. Thalbit-
Zer, chief editor of Finanstidende,
Denmark's leading financial paper.
THE Danish financial situation, in
many features. resembles the French"
said DR.. Thalbitzer, only it is not
quite so bad, because we were not in
the war. Our situation is due in
part to the unwholesome situation
throughout Europe, which, as a. result
of the war, is suffering from the loss
OF the two great financial leaders of
preWar days - Great Britain and
france. France is broke, and Great
Britain has not enough money to
cover her own needs. Before the war
those two countries were relied on by
the smaller nations for loans and
credits to tide them over such tenn
porary crises as Denmark is expert
encing now.
Causes of Crowns Decline.
iS hot
vacated by Great Britain and France
has been occupied by the United States
But that country is long way off. and
II mas not the same interest in European
affairs that the other two countries had
before the war. Besides. the demand
for money is by far greater now than
before the war. Germany, Russia
France and many of the smaller ma
tons need capital The amounts must
be figured in billions, not in millions
The direct causes OF the slump of
the Danish crown are: North Slesvig,
which must be rebuilt, and whicn to
date has cost us more than 500.G00. 900
crowns; the restocking of our farms
crowns has been spent; the reconstruc-
ton of Danish industry, which was
nearly ruined by German dumping. and
which will cost us hundreds Of millions
the Landmandsbank scandal. which has
deprecated our credit abroad.
"On the credit side of the Danish
financial ledger we may put figures
which show how Danish agriculture and
production are growing. In 1913 Der
mark produced 100 pounds of bacon per
individual; in 1928. 12o pounds (al-
though the population increased from
100000 to $500, ,000). In 1913 sixty
seven pounds Of butter was produced
per individual; in 1923. seventy-nine
pounds.
There is some doubt in our minds
as to the advisability of keeping on
increasing our production, for next
door to Denmark, in Germany, over
production in the last few years has
caused disastrous results. Although
the organization of our agriculture
is excellent, the recent drop of the
crown seems to indicate that it has not
been healthy 1t will take some hard
thinking on the part of our econo-
miStS and financiers to determine
whether to go on with the develop
ment of our agriculture or to stand
pat until the financial situation has
been cleared.
Considering Many Plans.
Many plans have been put forth
recently as to how to raise and
stabilize the rate of exchange of the
crown. Many favor tacking the
problem at what they think is it's
primary cause.-the excess of imports
over exports. Others want to follow
the example of those countries that
are Ievying gold duties and taxes,
thus making the state income inde-
pendent of xschange fluctuations
Still others would appoint commits
sion to control speculation and limit
imports of luxuries. To this class be-
long those who are in favor of ration
ing such food stuffs as coffee, sugar
and tea Iceland has just adopted
laws to this effect.
Il believe that the exchange prob
lem is more political than financial.
such learned experts as CaSsell and
Keynes to the contrary, notwith-
standing. What we need, in my opin-
ion, is to get substantial foreign
1oan. and hetfer financial leade rShin',