BERLIN’S PESSIMISM.

Ashburton Guardian, Volume XLIII, Issue 9626, 26 August 1922, Page 5

BERLIN’S PESSIMISM.

MARK SLUMPS AGAIN.

PEOPLE IN PANICKY MOOD.

THE REPARATION PROBLEM. (Per Press Association, Copyright.) LONDON, August 24. The exchange on Berlin closed at 8250 marks to the £, after touching 8550 on heavy sales following a report that the Reparations Commission delegates’ negotiations with the German Chancellor had been unsuccessful. LONDON, August 24. The Berlin market is deluged with marks from foreign holders who have flung them thereon with no other object than getting out at any cost, but holders of foreign money, especially dollars, are most unwilling to sell. Consequently the volume of business done at the present mad prices is very small. The collapse is attributed locally to a complete loss off faith in Germany’s recovery and also to pessimism regarding the outcome of the present negotiations of Sir J. Bradbury and M. Mauclere of the Reparations Commission, with the Government. The absence of news in that connection is responsible for wilder rumours, including a, statement that the departure of Sir J. Bradbury and M. Mauclere is imminent. The panicky excitement of the exchanges is largely due to rumours and therefore it is not altogether warranted, but bargaining is proceeding. The violent fall in the exchanges is regarded as 1 the danger signal of a political storm. PARIS, August 24. Although there is the utmost secrecy in Berlin with regard to the outcome of the Bradbury-Mauclere mission, several newspapers state that the German Finance Minister only offered, in default on payments in kind, to guarantee the payment of £2,500,000, which will be supplied by the German banks. The nevspapers allege that that delegation considered the offer ridiculous.

FRANCE AND GERMANY.

LUDENDORFF’S VIEW.

PARIS, August 24. General Ludendorff, interviewed by the “Echo de Paris,” admitted that post-war German animosity towards France had considerably increased, which he attributed to the crushing and impossible terms France had imposed, wounding the German national honour. If France at last was beginning to realise that Jier policy of oppression towards Germany would lead only to ruin, she would sooner or later change her policy. “I am convinced that if the German people could be assured of a new future based on their great common interests with France, they would work with one accord with the French for the restoration of Europe and the common welfare of two countries.”

THE ALSACE SANCTIONS.

WHY THEY WERE CANCELLED. LONDON, August 24. The “Daily Telegraph” understands that the real reason why France cancelled the sanctions in Alsace was because of protests from the Alsatian Chambers of Commerce that the sequestration of German property was ruining the country trade, which was mainly with Germany, and carried on under a special provision of the Treaty of Versailles. The Alsatians hate the Germans more than other Frenchmen do, but, in practice, business men are not willing to sacrifice trade to sentiment.

EARL BALFOUR’S NOTE.

AN AMERICAN DENIAL

LONDON, August' 24. The Secretary of the Treasury, Mr A. W. Mellon, has issued a statement an intimation contained in Earl Balfour’s recent Note that the United States required Great Britain to guarantee the return of the money loaned to the other Allies during the war. Mr Mellon declares that associated and other Allies borrowed ou their own account, and he produces memoranda to show that this was clear to Great Britain.

WORSE TIME COMING.

DEPRECIATION OF MARK

(Received This Day, 9.5 a.m.) LONDON, August 25.London financial experts call attention to the fact that the Austrian knoner was 9000 to the pound sterling nine months ago and is now quoted a* 400 000 and point out that the marK is rapidly approaching a condition m which it will he equally as useless as a medium of exchange and as a basis of taxation. So before long Germany will be unable to do any trade abroad. When it reaches that stage of depreciation and supplies of food and raw material are exhausted deve opments will be much more rapid and infinitely more dangerous than m Austria on ~"j&£ (Sany and of the political compliestions. ’ 1

plight of population. FOOD PRICES INCREASING. LABOUR urges rationing. (Received This Day, 8-50 a.mj LONDON, August 25. ( The German exchange opened to-day at 10 MO Apparently Germany has ave^SeS action. 1 “ . that French troops sent unconbimed, meantime have f gj r John Bradbury’s tire proceedings oi ~ secret , aldelegation ate stU an offer of £2°s§o 000 has been made. In this £J &UU,uuv has been a large, State ,nflv iLiicky selling of marks, eTiSyVoin New Vork Amsteoj

sales caused a panic on the Berlin Bourse and an even greater panic in the retail trade. . Countless householders are besieging shops, anxious to use the last few marks for buying something of practical value, as the shopkeepers increase prices by 100 per cent daily. Trade union leaders have 'Rested W Wirth to the rationing of necessities the Govern ment control of foreign trade and the prohibition of the sale of sweets champagne and luxuries, and to limrt thC come" 2" £ agreement with Sir John Bradbury's delegation which would <^ da «e® r people’s food supplies. He would m crease the duties on tobacco and cc£ee and all luxuries and prohibit imports as far as possible. The Government proposed an internal gold loan to raise urgently needed tunas.

A GERMAN PROPOSAL. ’ (Received This Day, 10-55 am) BERLIN, August 25. Ht is reported that Sir John Bradbury’s delegation at Hermes failed to come to an agreement. Cabinet thereupon evolved a proposal to estabhs i a reserve fund of foreign currencies to be placed at the disposal of the Reparations Commission if Germany falls behind with supplies of coal and timber It is understood the delegation refused, but the negotiations are continuing.