DETAILS OF THE RUSSIAN PLAN FOR CURRENCY REFORM

Wanganui Chronicle, 24 June 1948, Page 5

DETAILS OF THE RUSSIAN PLAN FOR CURRENCY REFORM

(N. Z. P. A. —Reuter—Owright) Recd. 10.55 p.m.' Berlin, June 23 "Detailed orders for currency reform in the Soviet zone place the responsibility for carrying out reform on the Prime Ministers of the Soviet zone provinces, and on Berlin's city administration and the district Mayor. The order states that individuals should surrender all their cash. Seventy marks will be exchanged at par and excess sums at the rate of 10 to one. The authorities will not exchange beyond 5000 marks for each family until they hare made stringent inquiries regarding the source of the money. Metal coins will continue to circulate at face value, compared with one-tenth of their value in the Western zones.

Soviet Army soldiers and officers will have marks exchanged at par up to four weeks and two weeks’ wages respectively, and larger sums at a rate of ten to one. Business organisations will be given exchange at par equalling the weekly wage bill. Frozen bank accounts will be unfrozen and

converted at a rate of 10 to one, but holders’ accounts over 3000 marks must establish that the money was legally obtained. Insurance policies will be converted, at a rate of three to one. The authorities will confiscate all profits of blackmarketeers, war profiteers and speculators. Wages salaries, pensions, fTrices and services remain alteredThe Russian authoriites have warned the acting-mayor of Berlin that they have prohibited the circulation of any other money in Berlin, including new West Germany currency, and that the police had orders to prevent this. The Allied commandants of the three Western sectors met this morning to discuss the Soviet currency orders. The Social Democratic Party is holding a mass protest meeting this afternoon in the French sector.

The Soviet authorities this morning withdrew armed Russian sentries who cordoned the streets round the "Taegliche Rundschau” offices on Monday.