“A GREAT DAY”

Southland Times, Issue 19100, 19 November 1923, Page 5

“A GREAT DAY”

ISSUE OF RENTENMARKS GERMANY’S NEW CURRENCY LAUNCHED ON THE ROAD TO STABILISATION. (By Telegraph—Press Assn.—Copyright.) (Australian and N.Z. Cable Association.) LONDON, November 16. The Daily Telegraph’s Berlin correspondent says: “This is a great day in the history of post-war Germany, perhaps of the whole of Europe. To-day the issue of rentenmarks, or bond marks, began and the Government ceased entirely to raise money by discounting bills at the Reichsbank. The Government instead now draws on an immediate credit of 300,000,000 bond marks given it by the Rentenbank’s issue of new currency. The civil service this week can only receive a third of their wages in bond marks. This is largely due to the printers’ strike, but bond marks printers are now working. It is expected the State’s outgoing daily will be met increasingly in bond marks. By quick degrees it is hoped these will soon become the chief medium of exchange in retail trade. Before this is achievable there must be stable exchange between paper marks, bond • marks or gold-backed securities. This is rendered difficult by the Government’s recent enterprise with the money market.” The Morning Post’s Berlin correspondent says the next fortnight will show whether this first step towards the gold basis is on firm ground. [lt was reported from Berlin on September 10, that the newly-appointed financial dictator, Herr Fellinger, had entered upon his duties having had conferred upon him the widest powers to place the currency on a stable basis. The principal proposal was the formation of a private goldnote bank, the restruction of the mark credits and the gradual introduction of gold as a basis for taxes. The cables later contained the information that the Government had decided to launch a new currency in the following terms: The new unit of currency will be called the rentenmark. It will be issued by a new private-ly-owned bank, called the Rentenbank, and it will be backed by gold securities. The Rentenbank will place 1,200,000,000 rentenmark at the disposal of the Government. Paper marks will also be legal tender.] PROMPTLY' TURNED TO USE. . RENTENMARKS FOR RESISTANCE. BERLIN, November 16. The Cabinet has decided to devote 100,000,000 rentenmarks out of a total of 900,000,000 placed at the disposal of the Government by the Rentenbank to the continued payment of subsidies to occupied territories, especially unemployment doles.