EXPORTED CAPITAL

Evening Post, Volume CVII, Issue 86, 10 April 1924, Page 5

EXPORTED CAPITAL

GERMAN PROFITS FROM TRADE

CST MARKS.

CAUEIEAUAN-MIVr.:ZEALAND. CABLE JtSSOCtATIOS.) . Uteceived 10th April,' 11 a.'m.) „ ' '.■ '; !'! ■ PARIS.-:9th:April.; .The report: of: llr. M'Konna!s Committee on' the flight of German capital estimates that the value of, German capital abroad at the end of last year .was' between: 5700 . million and ■ 7800 million Kold marks, making, with 500 million of foreign money held in Germany) a grand total of 8000 .millions. It. sta'tesj that the principal method ■ adopted for ac L . quiring foreign'capital was the negotiating of paper marks 'abroad, .and': deqlares ' that inquiries on the principal German banks'; ."with", the ..assistance "of chartered, accountants, show that Germans thus ■ made a net profit of 7000 or 8000 million gold marks. ' , • . .- ■' • The report enumerates' other methods. of export of capital, such sas the sale of -merchandise, securities,-. bullion,, and bills of exchange. . . ■ ;■-. - In order to stop the flight" of capital, the report recommends- the ..abolition of the cause,- by -the definite cessation of ' inflation.-. It.attributes the flight of capita! principally to the failure to balance ( -' the Budget, .which caused . capitalistsi to. translate their .money. into: foreign denominations to avoid loss through the (depreciation of their own currency.- . .The.report declares thai the flight of ■ money \ has been accentuated, by. the. attitude of the Geriian people towards the payments Germany is called ■ uponto make to her war creditors. . The- committee refers; to. the . recoin- ■ tnendationa of the Dawes Committee for establishing German money oh a stable foundation, and thus facilitating the re- : turn of a large .amount "of. German . wealth now abroad to the ordinary commercial, channels. > It proposes, for- the period pf transition, that persons liable „ to penalties under the .existing laws should.be. pardoned, and advantage offered^ to Gormans to subscribe to loans in foreign currency. -' i