Evening star., 1953-10-25
Bv William Hines

-anQ not. communist spy ring
which succeeded in procuring
allied military occupation cur
rency plates for Russia in World
War II. That is the verdict of
American officials close to the
original decision on the German
marks deal.
Miss Elizabeth Bentley. a con-
fessed former courier for inter-
national communism, told Sem
ate investigators last week that
an underground ring in the
Treasury turned the heat on
high United States officials to
get the plates.
How 1t All Happened.
The story, according to COM
petent and informed sources,
actually unfolded this way:
The decision to print occupa-
ton currency for the invasion of
Germany was taken early in the
war, in accordance with stand
ard military procedure. Similar
currency was issued to troops in
Italy, France and other areas
where the local money had been
debased by the enemy's occupa-
ton forces.
AS a symbol of allied unity,
as well as for simplicity in fiscal
matters, it was determined that
one currency should be put in
circulation in Germany by all
the invaders. This currency was
developed by an allied (Anglo-
American commission, and was
designed by American engravers.
It was primarily pink and blue
in color, resembling old-fash-
ioned cigar-store coupons. The
only language on the money was
German. It was headed-in the
place corresponding to United
States of America" on our bills
with the words "Alliierte Mill
taerbehoerde" (Allied Military
Occupation). The currency was
issued in small pieces of paper in
u mark and 1-mark denomina-
tions and in larger sizes for 2, S,
10-mark and higher values.
Reds Hurled Threat.
In conference held among
British, American and Russian
military fiscal authorities, it was
first suggested that the money
be printed at one central place
and shipped to the three powers
in accordance with allocations.
The Russians rejected this idea,
demanding plates with which
they could produce money be-
hind their own lines. The Red
stand was backed by one princi-
pal argument and one principal
threat:
The argument: While it would
be simple to distribute money be-
tween the British and Americans
who were fighting behind a
single line, it would be difficult
if not impossible to get money
to the Reds in the quantities
and at the times needed.
The threat: If the Anglo
American representatives refused
to furnish printing plates, the
Red Army would develop its own
currency and distribute it uni
laterally.
The Western allies favored ac-
ceding to the Red Army demand,
but referred the matter to Wash
ington and London for final de-
cision. The American and British
governments agreed, and slapped
plates to the Reds.
Both the United States and
Britain backed their troop pay
ments of military currency with
money in their respective Army
pay accounts. Troops were paid
in German currency at the pre-
else rate of 10 marks to 81 and
the approximate rate of 40 marks
to one pound sterling.
Serial Numbers Differed.
AS far as fiscal authorities in
the West know, the Russians
gave their issue of occupation
marks no such backing, but
dealt it out to troops on a whole
sale basis.
Except for some transactions
between Germans. who occa-
sionally used the discredited
Reichsbank currency, all finan-
cial dealings took place, during
and for the first year after the
war, in allied currency. There
was no essential difference be-
tween NEUTRALITY-SUSPICIOUS.
occupation marks and those
turned out on Russian presses,
except for little-known char
acteristic of the serial numbers.
There appears to have been no
bookkeeping reason for this diff
ference in numbering, and GER
tainly the type of serial number