A PAPER NIGHTMARE.

Press, Volume LX, Issue 17981, 26 January 1924, Page 8

A PAPER NIGHTMARE.

GERMAN CURRENCY

PARADOXES

THE DEMAND FOR PAPER MARKS

Paper making is noir the key industry in Germany, producing the most required article. It is the only industry with no unemployment, declares Dr. Sehaffrnth (Dresden) in the "Manchester Guardian." Quite the contrary; paper factories arc run in doublo shifts. Twenty large factories are entirely occupied in supplying the Eoichsbank, and 72 in all arc working for it, converting train-loads of paper into money. And this paper money, by a miracle, seems from the demand for it actually to bo the most desired in the world. The Reielisbank has literally been besieged of lato by messengers from banks, industrial companies, and Government authorities, all crying foi money. They come with motor-trueky and horse-carts to carry it away. Tho demand totalled on October 26th nearly three trillions of marks. I fancy that a trillion will be a iiguro not very familiar to Enalish people. Hero it is in cyphers: 1,000,000,000,000,000,000. I may add, to prevent a misprint, that tho figure "1" should have a. tail of 18 zeroe.

Faced bv tho tremendous demand for new paper marks, the Reichsbank has declared that it has only small stocks on hand, and that its daily production amounts to but a quarter of a trillion; this output, however, would be doubled within a few days. (What "wonderful outlook for paper factorios and printing plants!). Consequently most customers only l-eceivod a small fraction of the sum demanded. Tho Reichsbank had first to satisfy the claims of the bureau which pay the doles of the unemployed, lliese do not understand a joke, 'and soon riot. Next, for a similar rearson, _ industry was given, as. far as possible, the means for wages payments. Trade, including the banks, got very little, and tho Government authorities next to nothing. The State employees are regarded as tho most patient, suffering without making disagreeable complaints. As a consequence thousands of State employees do not receivo their saalries till they arc a w'eck overdue. As all availablo cash is distributed first to the lower grade, many high officials and their families must now go on short rations. Credit is nowhere given, arid even a large banking account is valueless owing to the empty coffers of the banks; this well-know fact also results in cheques being generally refused. 'When salaries are paid later on they will have become valueless through tho daily doubling and trebling of prices, so that a high State official may to-day receivo leas than an unemployed workman. Theso delavs and irregularities of wages and salary payments anl the consequent distress are the main cause of the diminishing efficiency of workers, and particularly of State employees. But to return to the qnostion at issue: The prosperity of tho papor industry on account of the tremendous waste of its. chief product upon bank notes. Owing to tho rapid devaluation of the mark, notes are very short-lived. In a fortnight most of the notes become superfluous, prices having risen to such an extont that a note 6f a hundred times higher denomination must replace them. The notes look still brand-new when they will no longer buy even the cheapest objects, Yet, by another miracle, their value has grown meanwhile-—as raw material!—: far above the sum for which they aro legal tender. Tho ragman pays at present for German notes up to 1000 marks forty times, and np to 100,000 marks four times their nominal value!