THE MARK'S DEBACLE.

Auckland Star, Volume LIV, Issue 182, 1 August 1923, Page 5

THE MARK'S DEBACLE.

FIVE MILLION TO POUND. WORTHLESS CUBREWCY. (By Cable.—rrese Association.—Copyright.) LONDON, July 31. Exchange on Berlin fell to 5,100,000 marks to the pound sterling yesterday, against 3,800,000 on Thureday.—(A. and N.Z. Cable.)

Again we have an account of the vagaries of the mark, which was yesterday quoted at 5,100,000 to the pound sterling. At that rate it i 8 ridiculous to speak of the mark, the more so that the printing press in the Reichsbank alone is turning out fourteen million notes! daily of denominations varying from 1000 marks to 500,000 marks. Private printing works are also pouring out I paper currency. These facts add to the ! evidence that the industrial leaders of Germany do not desire the rehabilitation of the mark. If the fall in the value of the mark were honest, Germany to-day would be in a state of bankruptcy. The evidence is all to the contrary. Mr. C. W. Barren, an American, who has been making a study of the financial condition of Germany, has come to the conclusion that Germany is the most wealthy country in the world. Many of his statements corroborate the statements of the French Premier, M. Poincare. Mr. Barron writes: "If you want the financial position of Germany, don't go to Berlin or Frankfort. Visit the countries round about her, and then sit down with friends in the international banking field, and then you may learn I that Germany lias more gold and credits outside her own country than the whole of Germany is selling to-day. A Ger-man-American banker I have known for many years declared to mc on the Continent: 'I have heard from all my friends in Germany. They have all liquidated into foreign currencies, and are doing very well. Indeed, throughout Germany the rich are getting richer and the poor j poorer. All the bankers have their | money outside the country.' An American man of finance, one of great wealth and more ocean crossings than any other banker, declared: The president of the Bank of Berlin, which you know is ; almost as big as the Deutsche Bank, said ■ to mc that their entire capital surplus is in South America. All they have here in their building. The rest is mere debit to depositors and credit to borrowers, all in paper marks. . And this was what was said by the head of one of the bestjnformed international banking houses in the world: "You may not believe it,; but Germany is* the most prosperous country in the world to-day, not excepting your own blessed United States. Germany has practically no debt. She is making big money, paying practically nothing to her labour, and holding? enormous balances in gold outside. We estimated some few years ago these outside balances at six hundred million pounds. We now believe that Germany has a thousand million pounds outside of the country. The rich men, the induetHalists, the capitalists, and the bankers are making money all the time. The labouring classes are well cared- for. Their wases rise as the mark falls.' But the middle classes, or the so-called intellectuals, have been crucified, and the ruling Germane do not care whether they perish of starvation or not. Aβ they are not handworkers or fighters, the German* reeard them us already out of the race, and their death no loss to the country.' "