GRAVE ANXIETY CAUSED

Evening Post, Volume CIV, Issue 9, 11 July 1922, Page 7

GRAVE ANXIETY CAUSED

•POSITION MOST DANGEROUS"?

DELIBERATE MANIPULATION

ALLEGED,

(BJWBD ritISS ASSOCIATION.—COPYRIGHT.)

#HTSTRAiIAN - KffW ZJAWND CABLK ASSOCIATION.)

(Received July 11, 9 a.m.)

LONDON; 10th July.

Official circles are gravely anxious over the German financial crisis. The Cabinet will consider the situation Jomorrow. It is reported that Mr. Ll6yd George .has informed the United States that the position is most dangerous, and an assembling of the Supremo Council or of the allied Finance Ministers and experts is regarded as*1 imminent. The latest drop in marks has not been fully explained. Tha German' purchase of foreign securities for the July reparation payment, together with the speculation panic, are regarded as insufficient reasons for the fall, especially as the Wirth Government weathered the storm caused by the murd«r of Dr. Rathenau and the monarchist reaction. If France can be persuaded to forego her' earlier objections, the International Bankers' Committee, armed with full powers, may be asked to reconsider the loan question.

Two schools of thought are formingone fears a Red revolution in Germany and desires to assist Germany; and the other believes that the situation cannot finally be relieved till Germany has passed through'a stage of national insolvency. There is considerable press opposition to British money going to help Germany. The Berlin ■ newspaper Fraiheit suggests that the cause' of the collapse of the mark is internal, not external and infers that it was deliberately engineered by reactionary German capitalists, who have purposely kept foreign currency out of the market. It points out that quotations in Germany are consistently worse than those abroad. It recalls significantly. the converse case, ■when, during the Kapp "putsch," while the Kappists were in power, the mark was driven up by some unknown agency, though it fell when the Kapp enterprise failed. ' '