Evening star., 1948-06-27
Trade Revivino,
Hourded Goods
Appear in Shops
BY the Associated Press

FRANKFURT, Germany, June
26.-Western Germany tonight
was on its way toward becoming
free enterprise area as opposed
to Eastern European Commu-
nism.
At the prospect, Germans Whistled
while they worked-maybe for the
first time since the war. Their old
cigarette economy" was bowling to
the new Deutschemark.
The most drastic postwar steps
toward freeing the area of the rem
nants of Adolph Hitler's old bureau
cracy were taken in the latest
money measures announced at noon
by America. Britain and France
The Western Allies occupation
governors announced the exchange
rate in currency conversion will be
one Deutschemark for 10 old Reichs-
marks.
Plan Full of Surprises.
Half of the Deutschemarks after
conversion will be credited to a
free Deutschemark account" for
immediate use, and the other half
to a blocked Deutschemark
account"
To 45,000000 little men" of West
ern Germany, the reform program
came like Christmas in mid-year.
It was full of surprises and promises
for a good future And the gifts
the long wanted consumer goods
unseen in Germany for years
already were in shop windows.
Although the shadow of the East
West struggle in Berlin hung over
their heads, Germans were mostly
happy at the prospects for a sound,
capitalistic Western Germany
A week ago they found their old
money no good. Through this week
they each had 40 new marks 12).
Tonight they learned:
They would get per cent of their
old savings back Immediately. with
another per cent IN lew months.
Black Markets Hit.
Black marketeers were likely to
be pennlless.
It's time the law caught up with
him" said. the average German.
Business had a good chance for
the future, and there was a pros
pect of goods and jobs for all. And
the little man had new chance to
set himself up in business.
Allied experts believe that Western
Germany's economy has been Grip
pied since the war by too much
money, too few goods and too much
bureaucracy.
Because there was so much money.
big public organizations like state
governments, the state-oWned rail-
ways and post offices padded their
payrolls with thousands of nom
essential employees
Tonight these organizations were
severely hit The Allied govern
ments wiped out their entiSe funds
in old Reichsmarks. and promised
them only one-siXth to one-tWelfth
of their total receipts during re-
cent six-month period.
No Depression Expected. :
Thousands of people may lose their
Jobs during the first stages Of the
Allied attempt to stabilize Western
German economy.
But We expect no depression.
Jack Bennett. American father" OF
the new financial plan, told news
conference.
Instead he saw period Of plenty
for Germans in the west after awhile.
Already in the past week" ne
said, the success of the reform pro-
gram is far beyond my expectations.
The shops in Western Germany
seemed to prove it. The billions OF
marks worth of boarded goods were
coming out into the open. Women
could even buy nylons.
These are just the hidden re-
tail goods" said Mr.. Bennett. wait
until the factories begin to let go OF
their products"
Under the law announced today.
the money will be kept short by
high discount rates on credit, and
1See CURRENCY, Page AS