Paper Marks

NZ Truth, Issue 997, 3 January 1925, Page 12

Paper Marks

A Gamble That Failed.

People who some considerable time ago gambled' in German (paper) marks must have . long since realised (says London; " Truth' 1 ) that they backed the wrong horse. They are. now ajale to gauge the extent of their losses. With the coming into force of the new Bank Law and Currency Act, Germany from October 11 has a new currency. The new unit is the Reichsmark, equalling one billion paper marks. The marks, note,s of the Reichsbank -will remain legal tender pending issue of new notes and the withdrawal of the old ones. The ratio between the Reichsmark and the paper mark, . which has hitherto been maintained by the Reichsbank, is now fixed by law, as well as the' ratio between the. new Reichsmark and the rentenmark, which have an equal value. As the rentenmark has a dollar, or gold basis, it is worth a little over one shilling, allowing for sterling being at a discount. Therefore it is easy. tA calculate the present day value of a holding of German paper marks. If a man invested m a billion he merely crosses off twelve noughts, and the remainder is worth about a shilling.. If he exercised moderation and bought a, million marks only, his holding is worth a millionth part of a shilling. So simple;