INFLATION IN GREECE.

Evening Star, Issue 25422, 1 March 1945, Page 6

INFLATION IN GREECE.

TO THE EDITOR. J Sir, —As to your footnote that I have confused cause and effect I plead not guilty. According to Colonel Hill hundreds of thousands of sovereigns were taken into Greece-for the purpose of undermining German currency, but we find that it had the effect of-de-preciating Greek currency and Amgot" currency also. It reminds one of the Germans 1 and the flying bombs. They claim that the flying bombs are sent against military objectives, but we know that is just bluff. I have no doubt that after the war is over there -will be an effort made to force the nations to return to the gold standard. We know what it had on the people when Britain returned to the gold standard some time after World War I. We also know what Lloyd George told America when she demanded payment from Britain in gold. "Yes," said Lloyd George, "we will pay you in gold. We will feed you with gold—in fact, we will choke you with gold." And his words proved true.

I do remember what happened in' Germany in 1923. That was the time that the marks were so manipulated that they became useless, and many people outside of Germany rushed to buy the marks, expecting to make a fortune, but they were not "in the know " and they woke up one morning to find that the marks they held had been declared void, and that new currency had been issued. That was the time that the Jews bought up all the bricks' and mortar in Germany. That was really the time when the stage was set for the rise of a man like Hitler, and the persecution of the Jews. Don't think that I believe in the persecution of the Jews. I don't. There is one point that we must consider which you seemed : to have overlooked. After the last war Germany was a defeated nation, and one would naturally look for an upset in her currency, but in this war Greece is on the winning side and being backed by Amgot. and I don.'t think we have any doubts about the stability of the United Nations, so I don't think that Greek currency really should have depreciated so far. As to your point about confusing the financier who may seek to profit by manipulation with the Government representatives who are seeking stability, again I must disagree. The financier is a powerful influence in manv of the United Nations' Governments. I have

noticed for some years that the financier has adopted a new technique. At one time he made loans- direct to foreign Governments, hut now he get his Government to make the loans to foreignPowers, and. he advances the finance to his Government, so that his invest-ment-becomes a gilt-edge-security. In the event of the British Government making a loan to a foregin Power, and that Power defautling or being overcome . by an agressor, the financier, w protected, and the British taxpayer has to foot the bill. Quite shrewd isn't it —like using a double-headed penny, or " heads I win, tails vou lose."—l am, etc. Semper Paratus. Februarv 26.