SHOPPING IN BERLIN.

Hawera & Normanby Star, Volume XLII, Issue XLII, 29 December 1923, Page 10

SHOPPING IN BERLIN.

"E "MULTTPLICATOR" IN ACTION.

(From an Englishwoman in Berlin in

the London Times.)

Keepmg house in Berlin is a difficult task, but at least it has the charm of variety. Up to about a year ago, when the dollar was only half understood, and one bought in marks at more or less fixed prices, living was cheap. Articles might cost their hundreds or thousands of paper marks, but in relation to prices at home there was a distinct advantage on the side of English people who drew,their pay in England and spent it in Germany. Many English and other "strong valuta foreigners," especially Dutch and Scandinavians, came to live in Germany for economy's sake, much as English people lived on the Rhine after the Franco-Prussian war—for the advantage of cheap living and good edu* cation for their children. Even six months ago Berlin was a cheaper place than London, Stockholm, or Amsterdam. But all this has now changed. The coming of the gold mark has changed it. Living is no longer cheap, and for foreigners there is nothing attractive about education in schools where the sacred duty of revenge seems to hold a high place in the teaching. Berlin has become one of the dearest, worst served, and moat inhospitable cities in Europe, and it is safe to say that in respect of deamess it will soon have passed Vienna. The paper mark with its round figures of noughts, so confusing to the untrained mind,- is fast giving way before the gold mark, and might disappear altogether if the gold mark had any real existence. For the gold mark is only imaginary money invented to simplify price lists and at the same time keep up prices. The menus and wine lists in the restaurants are no longer priced in of marks. Instead, the various items are priced in gold marks, and at the foot of the list is a figure, called the "depreciation factor," or "multiplicator," by which the gold mark is multiplied. The result is" paid in paper marks. The gold mark represents actually rather more than a shilling, and the "multiplicator" is about a quarter of the rate of the dollar for the day. Thus a bill of twelve gold marks on a day when the dollar stood at 160 million marks would be about 48 million paper marks.

It sounds confusing, but one gets accustomed to it. The mark in its millions is, of course, still the compulsory currency. But even things sold for paper marks seldom remain stationary in price from day to day. My. newspaper man, white-haired, I wizened, and nearly 80 years old, al- j ways finds it impossible to reckon how much I owe him at the end of the week, and I have to do the sum for him. It usually runs into millions, and I have discovered that he cannot count above a hundred. Transactions : in foreign money are strictly . prohibited, but in spite of the threats of the currency dictator I am frequently asked in shops to pay in dollars. My Berlin bootmaker, who worked in London for many years, demands pounds of his English customers, dol- i lars from Americans, and gold marks only from Germans. He will,.- have nothing to do with paper marks when it comes to quoting a price. In provision shops one frequently hears Ger- . man customers say they have only dollars to pay with. They produce their green dollar bills, and, if the customer is known to the cashier, the change is handed back in paper marks at the day's rate of exchange. In the shops, hats, coats, furs, and shoes are almost invariably marked in Sold marks. They are extremely dear, and usually become even dearer in the process of purchase. The calculation gives the shopkeeper plenty of opportunity to make a little extra, and the wise purchaser will look first to see what the official gold-mark rate is before setting forth. The ordinary household commodities —bread, flour, meat, fruit, vegetables, and cereals — are generally priced in millions of marks, but.all luxuries (real coffee is a luxury and so are most .fruits) are 1 generally in gold marks, and are appallingly expensive as compared with London prices. The exchange rate is fixed at noon, and is supposed to govern transactions for the rest of the day. Before that no particular rate is binding, and people ask what they think they will get. After the rate is out they take the pre-war price, duly multiply it, and arid 100 per cent, for possible lo^s: This is called the "take-no-n sir-dollar,"' and1 it is done in most of the shops also. Not all shops follow th* off Via! rate. As often as not theseTTer is gufdetF by the unofficial rate, whfcfi is the Basis of illicit dealings done in the cafes or on the kerb, the "black bourse," as it is called. It is sometimes as much as double the official rate*. The German banks do the exact opposite, and those with the biggest international reputations seem to be theworst offenders. Their usurious rates and" charges- in changing money are almost beyond belief. The official rate is always far lower than that of the open raarket, and the banks never give even- that. Usually the rate they giv© is about half that obtained in Cologne (where Government control i:s less operative), aad until the railway rates were put on to a gold mark footing it was often actually worth making the trip if one had to change a large sum. I» addition to giving the worst possible rate, the Berlin banks make a charge of 8 per cent, per day for changing a cheque, in tinder three days, no irtatter how well their customers may be known to them. In addition, there are their own charges j and those deducted for the Govern-} ment by way of duties ami taxes. No | wonder the. German banking world is ' so rich that it can afford to turn away j the busiive«s of the small trader anil j devoVo itself to financing great foreign enterprises.