PAPER CURRENCY

Gisborne Herald, Volume LXVI, Issue 20035, 6 September 1939, Page 6

PAPER CURRENCY

NEW GERMAN FLOOD FORMER NOTES REVIVED INFIJATION K EGAIj L EI) HUGE TAX INCREASES (Eire. Tel. Copyrljfht—United' Press Assn.) (Reed. Rent. G, 1 0.m.) LONDON, Sept. 5 The German official news agency in Berlin has made the following announcement:— “Following increased demands for means of payment in the present circumstances. it has become necessary again to put into circulation a larger amount of five-mark notes of the Rcntenmark currency. These notes have never lost their validity. Therefore they still represent fully valid means of payment. In order to facilitate payments in small change of the Rcntenmark note, one or two marks will be issued.” The Times comments that the appearance of a fresh flood of paper currency caused' considerable comment among Germans, whose memories embrace the inflation period of 1923. The Reichsbank returns for the week ended August 31 revealed that the note circulation jumped by 2,197,000,000 marks to- 10,900,000,000. The proportion pf gold_ held as foreign exchange covering sank .17 to .71 per cent. In addition there has been an increase of 50 per cent in the income tax, and a war tax ol' 20 per cent has been imposed on luxuries such as liquor, champagne, beer and tobacco