A GLIMPSE OF EUROPE

Evening Star, Issue 18690, 19 July 1924, Page 8

A GLIMPSE OF EUROPE

STRAIGHTENING OUT EXCHANGES. ENCOURAGING OBSERVATIONS.

A peculiarity of the movement of German foreign exchange, disclosing tho latest freak of the German mark, was remarked upon by Mr E. J. Hyams, of Wellington, in tho course of an interview with an Auckland ‘ Star ’ reporter. Mr Hyams, who has been a frequent visitor to Europe since 1907, and has just completed his fifth tour of the Continent, dropped some rather interesting gems of assertion regarding Continental affairs generally, and gave the impression that conditions were better than New Zealanders ordinarily suppose. On his recent trip ho spent four and a-half months early this year in Europe, and travelled through Germany, Czecho-Slovakia, Austria, Italy, and Franco. Has travels have incidentally not improved his opinion of the Now Zealand railways; for ho speaks of everything being luxurious in Europe, not oven excepting those countries whose prices soared as high as tho astronomical zenith.

“ One can leave London at 10 in the morning, and be at Prague on a through train from Flushing at 3 in the afternoon of the following day. Then from Prague you take a very luxurious train to Vienna, and so across Southern Europe to Nice and Monte Carlo. The trains are very luxurious, equal to pre-war days. Having given the impression that conditions of life on tho Continent of Europe wore delightfully comfortable, Mr Hyams proceeded leisurely to detail a few of his observations by tho way. What ho had to say about tho foreign exchanges was quite encouraging. “Most of the countries of Central Europe have managed to put their currencies on a more or less' stable basis,” he remarked, “such ns Prague, in. Czechoslovakia, where the exchange is normally 150 kronor to the £. In Vienna tho exchange hardly varies from 300,000 kroner to tho £, and Italy stands at about 100 lire. So there are only slight variations in the rate on London.

“ As far as Germany is concerned, there are three distinct types of notes, including tho. ordinary mark, which is practically valueless. The gold mark, which is really a gold certificate, and is based on the American dollar, has now assumed the chief importance. Assuming that a man goes to Germany with a Bank of England note, ho will only receive about 18s to the £ when he converts it into gold marks, for tho reason that, the £ sterling is depreciated in terms of dollars."

Czecho-Slovalda Mr Hyams spoke of as ono of the most interesting republics in the world to-day. It was formerly the State of Bohemia, in the Austrian Empire, with its capital at Prague. “ Before the armistice,” lie said, “ the Czechs formed their own Government, with President Thomas G. Masaryk, who is the only President in the world who has been elected for life, at the head of affairs. “ Immdiately the people formed their own Republic they called in all the Austrian money in the country, and issued an official currency of their own bearing the new Government’s stamp. Any Austrian money in the country not being legal tender was valueless. Having done that the Czechs started issuing their own paper money against gold. This currency is now 150 kronen to the £, a striking instance of the possibilities of courageous currency regulation when compared with the conditions over tho border, where Austria is grappling with a currency problem in which kronen exchange for the £, As miglrt. have been expected from what ho was told by tho Czech people about tho depths of depreciation to which the Austrian currency had fallen, Mr Hyams found on going v to Vienna that conditions were as bad as he had been Jed to imagine. “Austria is recovering slowly from the effects of the war,” he said, “but everything is very dear, even allowing for tho depreciation; ;and, as a matter of fact, it is equally as expensive, if not more so, to live in Vienna than in London. All commodities arc subject to a tax. Your hotel account, if it comes to, say, £1 for your bedroom, which is the regular price m the leading hotels, is increased to 30s by a Government tax. Music taxes ami other taxes are on the same* scale; and everything that is consumed in tho country is subject to a tax in some form Or another.

“ Kates of interest, I was informed in Vienna, run as high as 30 per cent; but prices are still rising, and that tends to off-set the heavy interest charges.” Replying to a question, he said that in tho smaller towns in both Germany and Austria there was a great deal of distress and unemployment, all industries being affected; but in the larger centres conditions appeared very much better. “ One hears a lot about poverty in Germany, and a good deal of this is true,” o> plained Mr Hyams, “ but at the same time the German people aro spending money lavishly, buying expensive luxuries both in England aiftf France. It seems that, whilst there is a great deal of poverty, there appears also to bo much wealth. At Nice and Monto Carlo, where the principal spenders this season were Austrians and Germans, this wealth was peiticuhrly in evidence.” In conclusion, Mr Hyams said that everywhere, during his travels, he noticed. —and many others would agree with him —that there was a regrettable absence of New Zealand propaganda. “ Now Zealand should attack tho ques tion of opening up trade with other conn trios. There is a splendid opportunity,” lu urged, “ I know it is going to cost a ver - iirge sum; but wo should have on" .do representatives in all the prini ,d cities of trading countries, actingas ..ado commissioners as well as featuring tho beauties of New Zealand, with the object of attracting tourists and immigrants of the right type." German competition in the New Zealand market ho was not afraid of. “As far as German trade is concerned I do not think there will be any great imports of Gevman-rnado articles into this country,” was his confident assertion. The manufacturing cost of these goods is exceptionally high, and outside of certain goods that cannot bo manufactured in England, you will find that the imports of Germau-mado goods will he very limited.”