GERMAN CURRENCY.

Manawatu Times, Volume XLVI, Issue 2084, 27 March 1922, Page 4

GERMAN CURRENCY.

The Prime Minister states that a difficulty in the way of allowing German goods to enter New Zealand is the depreciated German currency. This difficulty should be overcome by an adjustment of the Customs tariff. The Melbourne "Age" states that the question of reparation payments has much to do with the wide fluctuations in Berlin rates of exchange. A report recently made by a special committee of the Federation of British Industries points out that the view of the British manufacturer is that insistence upon the fulfilment by Germany of her treaty obligations involves danger of world-wide financial dislocation and, since indemnities must inevitably be paid in goods or service, of the serious disorganisation of British industries. The recovery of the German mark in December, says a summary of German economic conditions made by the American Department of Commerce, was mainly due to the,influence of persistent rumours of indemnity payments, combined with the fact that heavy buying, especially of foodstuffs and certain raw materials for winter consumption, had fallen off. The basic conditions in public finance remained unchanged, the note circulation being on the increase with the resultant rise in the floating debt. According to the third supplementary budget estimated for the current fiscal year, the deficit will amount to 101,500,000,0p0 paper marks, of which 40,500,000,000 may be ascribed to the railway, post, and telegraph deficit, and 120,000,000,000 to the reparation payments due by April 30th this year.