DEPRECIATION OF THE MARK

Dominion, Volume 8, Issue 2420, 27 March 1915, Page 18

DEPRECIATION OF THE MARK

SALE OF SECURITIES THROUGH S WITZKR-LAiVD; The depreciation in the value of the' German mark has been one of the most striking features of the Bourse'ai Basle since the beginning of the war. Basle is the most. Germanic of the Swiss cities, and its geographical sitaution astride the llhine has made it the chief commercial link between the Empire and the Confederation. The city's great wealth has accrued mainly from German trade and a large proportion of its citizens are of German nationality, .vet they draw the line at tho German mark. The reason' for this is the abundance of German paper on the market. The situation is further marked in the case of Austria-Hungary; for around the Dual Monarchy the circle has been even, more tightly dra,wn; her foreign trade is virtually nil, if transactions with her own ally lie excluded. Still, as "Le Democrate," one of the ablest of the; Swiss journals, points out, there are other reasons than the uneven balance of German trade to account for t'lie fact that the German murk is quoted at 111 instead of 125 francs (par) on the Basle Exchango. In business circles here the precarious situation of Germany is well uudorstood. The situation of the pound sterling and of the franc is excellent. Great Britain's monetary regime is above all criticism and British commerce with the whole world maintains its full powers. The circulation of'notes in France is, it is true, considerable, but it is guaranteed by a' strong metallic reserve. Russia, ail essentially agricultural country, ..whose State Bank and Treasury 'handle' enormous sums, may bo considered well equipped for a long war without endangering the valuo of _ its currency. It would be interesting—and • probably instructive as to the probable duration of the war —to be able to estimate tho enormous sums lost to tlio Germans and the Austl-ians in tho first six months of the struggle by itho depreciation of th'e mark aild the crown. Certainly those, losses would run into tens of millions sterling. Tlirough the agency of Swiss banks quantities of Gerinan-lield American stccks liavo been sold in New York, and at this moment there are on offer in Basle and Zurich Swiss Federal paper received by _ Germany in exchange for shares in the St. Gotliard Railway—an ominous sign this, as it means t'lie sacrifico of something making for political prestige. Certain quantities r,f German gold have found their way From both Germany and Austria into the coffers of Swiss hanks, and a good deal has been sent to Italy. Only a few days ago (to quote one of several pieces of definite evidence) a truck full of German gold, elaborately scaled and guarded, and valued at £100,000, passed Chiasso for Rome. Many people here believe that as tho end approaches there will not be in Germany. as there might bo elsewhere, local or partial signs (suclr as unemployment here and famine there), but that llir- rhole concern will collapse at once .and everywhere.—"Central News."