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Hokitika Guardian, 8 November 1922, Page 2

\ KKitiKH of articles lias appeared in Uie London “Times” on the economic situation in Germany. They are written l>y the City Editor, who has recently made a tour of the country, and, ’online from one with an expert knowHce of finance and economies, they de--erve considerable attention. To some extent they throw light on a matter : n regard to which much of n contradictory character has been written in illf las( ycny Iwo An fh'jnrf’nf

point urged by the writer is that tlie great depreciation in the mark has not been due to the strain upon Germany involved in meeting reparation P*aments or in defraying the cost of the armies of occupation. It is shown that Germany's policy of inflation. which lias been the cause of the spectacular fall in the value of the mark, was in operation long before there was any | question of reparation. Prior to 1914 Germany raised a big loan to complete her naval and military programme, while the war expenditure was wholly financed by loans and credit inflation, only the interest being covered by taxation, the idea of her rulers at thattime being that she would as a matter of course win the war and recover its cost from her victims. Since then, with a weak Government in office. Germany has pursued the line of least resistance, and lias balanced her Budgets by printing notes. Hence the twelvefold increase in the l note circulation of the Reichsbank since 1918, the onorj moils multiplication of the floating debt, and the reduction of the mark [ to one three-hundredth part of its normal par value. There is more than a suspicion that Germany’s financial misI management, especially since tlie Armistice. was tlie outcome of a deliberate policy. Whether this be tree or not. it is a fact that the eclintiy was immensely helped by what the Times writer described as the stupidity and cupidity of foreign speculators who bought marks in the hope of making a profit out of them. The whole wo:Id he says, has bought maiks, including even Indians in Zanzibar, while eveiy fresh fall in the currency lias stimulated the flight from it. and tlie desire to get rid of marks is in large part the cause of internal trade activity in Germany. It is no more than the instinct of self-preservation which compels the German to sell foreigners bis constantly depreciating money.

It is a truism in the political world that there is nothing new under tilesun, for the reason that the ftindai mental principle of sound government is the greatest good for the greatest number. That embarrassing phrase covers all democracy, and that is tile ideal which true Liberalism has set up. Hon. G. W. Russell at Christchurch the other day expressed the same thought, alid it is reprinted ill another place to-day. when he sitid lie h>:! no new gospel to deliver, for there vias no loyal road to prosperity. He further recalled that the financial plight and general stagnation in the country to-day as tlie result of Reform misgovernment was akin to tlie conditions in 1890 who the prototypes of the Reform party of those days, the Conservatives under Sir Harry Atkinson, muddled national affairs to the same extent. Then, as now, the Liberals came to the rescue, and in a. very brief period the house was set in order, confidence was restored, and’ the country went ahead by leaps and bounds. It Was the sound Liberal policy which worked the change, and that same policy will operate as successfully again, when, intend of class legislation as Ilefoiln has offered and official Labor would offer, the. Liliernts will promote legislation for the masses, giving, in point of fact, the greatest good for the greatest number and so opening the way for all round prosperity, bettor times in which all may share, and 'mi restricted class.