GAMBLING IN MARKS.

New Zealand Herald, Volume LIX, Issue 18180, 28 August 1922, Page 7

GAMBLING IN MARKS.

DELUDED SPECULATORS. HOW GERMANY HAS/ SCORED. ______ '-.: j RAW MATERIALS FOR PAPER. B? TeieCTaDh—Prees Association— Copyright. (Received 45 p/w.) A. and N.Z. LONDON. Aug. 33. In view of the fact that financial institutions have been receiving cabled instructions from Australian andi New Zealand speculators to buy marks, the following commentfrom the Statist newspaper is of interest:—"Till quite recently deluded speculators in this country and abroad continued to be fascinated with the idea of making fortunes on the supposed recovery of the mark. It is almost incredible that anybody should look for the recovery of the mark to make its pre-war level, but such undoubtedly was the thought of many speculators. We suppose that the eyes of this class of gambler have at last been opened, and having lost all confidence in even a temporary recovery, they rushed to get rid of their holdings at any cost." Samuel Montagu's weekly review of the money market states:—"lt is difficult to find a satisfactory explanation of the fall of 70 per cent, in the value of the mark in one morning, and a fall of 195 per cent, in one month. Reparations are not being paid, and payment under the clearing house scheme is not being effected. Apart from these obligations which are not being fulfilled, Germany has a foreign debt for which interest. and sinking fund charges must J>e provided in foreign currency. Germany requires her exports to be paid in foreign currencies, and the mark balances standing to the credit of foreign importers have lost their value and utility as a medium of exchange." London financial experts call attention to the fact that the Austrian krone, worth 9000 to the pound nine months ago, is now quoted at 400,000. They point out that the mark is rapidly approaching a condition in which it will be equally useless as a medium of exchange and as a basis of taxation, so before long Germany will be unable to do any trade abroad. When she reaches that stage of depreciation, and supplies of food and raw materials are' exhausted, developments will be much more rapid and infinitely more dangerous than in Austria on account of the larger proportion of population engaged in industry in Germany and of her political! complications. Another financial authority says : " Germany is pressing the sale of more marks, but foreign importers who should he legitimate buyers find no use for marks, consequently thoy have sunk to the level of mere counters for speculators. As Germany will not take back her notes in exchange for goods the commercial world has had enough of them. Marks are useless for the exchange of goods except in the interior of Germany. They are discredited outside Germany, and they will not buy German goods. Germany has scored all the way; she has exported milliards upon millh/xds of paper money in exchange for huge amounts of raw material, and foreign currencies. The foreigner has paper, and at last he is tired of the game."