EFFORT TO SAVE MARK.

New Zealand Herald, Volume LIX, Issue 18222, 16 October 1922, Page 7

EFFORT TO SAVE MARK.

DRASTIC GERMAN EDICT.

USE BY TRADERS ENFORCED. OTHER CURRENCIES BARRED. Bv TeloEraDb.—Press Association—Copyright. A. and N.Z. BERLIN, Oct. 13. Instead of awaiting the legislative process, the President, Herr Ebert, to-night, under his powers to make laws where necessary for the restoration of public safety, signed a decree making it a penal offence punishable by three years' imprisonment to demand or accept foreign currency in any business transaction. It is concluded that German bankers and others will be similarly liable if they connive at the purchase of foreign currencies for speculation or investment. Certain banks and certificated traders are excepted, where ordinary business needs demand the purchase of foreign securities. The Berlin correspondent of the Morning Post describes the decree as of paramount importance. It is the Government's first genuine attempt to strengthen tho mark and facilitate payments on importations necessary to meet reparation responsibilities. The decree was issued after tho Bourse closed in order to prevent final plunges in the foreign currency market. A DUBIOUS EXPEDIENT. REAL REMEDY EVADED. Australian »nd N.Z. Cable Association, tßecd. 5.5 p.m.) LONDON, Oct. 14. The violent fluctuations of the mark have overshadowed everything in the foreign exchange market. It is generally agreed that the main cause of the collapsa is the uninterrupted activity bf German printing presses. While they continue to turn on tho paper marks there can be no hope of a recovery. The German Government's action to restrict dealings in foreicrn currencies was in the nature of panic legislation. Financiers here ridicule it.

The editor of the Statist writes: "Legislation of this character will not stop the fall in the value of the mark j cither at home or abroad even if it can | be successfully put into execution. Similar j regulations have been put into operatiou j in many countries since the war, but in no instance have they achieved their object, except for a brief period. In the case of Germany eagerness of holders of marks to exchange them for foreign currency may have given additional momentum to the downward movement, but the root factor in the depreciation of the mark is continued multiplication of units of currency due to the Government's inability to balance expenditure and j revenue. Strict enforcement of the new I legislation may arrest the decline for a ' brief period and may even cause a ternj porary reaction, but these measures cani not provide a lasting remedy for Gerj many's currency disorganisation. The only real remedy lies in balancing the budget or covering the deficit by a loan. In ! default of this the fall in value of the j mark abroad can only be prevented by • the suicidal, plan of stopping foreign exj change transactions altogether." GERMAN MORATORIUM. FIVE ' YEARS PROPOSED. A. and N.Z. PARIS, Oct. 19. The Journal says that Sir John Bradbury proposes that the Reparation Commission shall grant Germany a new moratorium for five years, concurrently with Allied prohibition of the issue of fiduciary stock by Germany. The German Government would be authorised to make pay--ments by five-year bonds endorsed by creditors, repayable . yearly during five ! years. | The Petit Parisien says that if the ReI paration Commission does not reach an ] agreement preventing German financial collapse the proposed Brussels Conference i may not be hold.