Patea & Waverley Press WEDNESDAY, AUGUST 29, 1923 GERMANY’S POSITION

Patea Mail, Volume XLVI, 29 August 1923, Page 2

Patea & Waverley Press WEDNESDAY, AUGUST 29, 1923 GERMANY’S POSITION

CONFLICTING reports have been received Iruni time to time >vitli. i’eg;ard to Germany’s financial position, some arguing that she i‘.s on the verge of bankruptcy, 'whilst others declare that she is in a very prosperous condition. The reports as to Germany’s poverty should always be taken with the proverbial grain of salt, as with such a large sum owing she would no doubt spend a considerable sum in hiring writers and speakers to spread abroad the impression that she was penniless, in the hope that the Allies would be induced to forego some, if not all, of the indemnity due. A recent investigator, in a book just published, points out that “Germany has the goods . . .. and since good s are the medium of reparation, Germany can obviously pay. It is preposterous to say that a country whose productive plant has been working at full speed for four years is poor. Lack of health in national finance does not mea n lack of national wealth. To pretend it does shows mental /ionfusicm.” In considering the steps which have led Germany to he’r present monetary condition, a cir cumstance which must not be overlooked is the extent to which speculation in the currency on fore ign account was conducted in the past. America, Great Britain, Hoi la bid and other centres bought marks heavily soon after the armistice when the rate was about 300 to the £, taking the view that Gernhany would recover quickly. In this way Germany experienced an unexpected demand for marks for abroad, to satis.fy which more wem printed than were needed for internal With every

xucieabe jjli tiie uoie cixcuiatioii me external value ui tlie currency uepreciuLea, uut me aecliue iu its purciiu&iug power at ironic was a umcii slower affair. (Jousequeutiy, tlie uepreciation ox me mark abroad became a source of profit lo me big mauuiacmrers and exporters, wno were able to produce goods at a cost in wages not very muck above the pre-war level, wkiie lor every sovereign and dollar wkick tke goods produced many more marks were obtained than formerly. Thus an artificial stimulus was given to tke trade of tke country, of wkick industrialists took full advantage, and tke commercial life of Germany was intensely active. Sir Henry Penson, in a small volume recordmg Ms impressions of a visit to tke Rhineland in January, 1922, said tkat any traveller passing througk tke Rhineland would say: “Here is a country in wkick everyone is occupied and everyone is more or less well-to-do,’ ’ and by way of evidence he would probably adduce facts, for instance:—On all sides there is the greatest industrial activity; unemployment is almost a negligible quantity; factories are being enlarged, and the new buildings are of a substantial character. There appeared to be ample justification of the opinion so widely held that Germany had made a surprising recovery from the exhaustion, the poverty and the general absence of comfort which characterised the country at the close of the war, and had entered upon a period of very great prosperity. This position has been altered materially by the. occupation of the Ruhr, which has very naturally menaced the trade of Germany that depended on iron and coal from the Ruhr district. We cannot agree, however, that an injustice is being done to Germany, for it must be remembered that during the war she broke every law, both human and Divine, and as a law-breaker.- she deserves* punishing. We have yet to learn, however, of any punishment having been demanded, let alone inflicted, by the Allies. Probably if the truth were known, a substantial portion of the indemnity due could and would be paid if the Allies were to jointly demand it. Germany’s position is really not as bad as she would have the Allies believe.