GERMAN ITEMS

Hokitika Guardian, 11 May 1923, Page 3

GERMAN ITEMS

AUSTRALIAN AND N.Z. CABLE ASSOCIATION. THE FALL OF THE MARK. (Received this day at 9.45 a.m.) BERLIN, May 10. The fall of the mark had a most serious effect on German banking. While the mark was twenty thousand to the dollar customers’ deposits iemained stable but with the fall there has been a run on deposits ill order to Imy foreign securities or purchase raw material, especially in the taxtile Hade. The hanks thus find that the reservoirs from which their banking business is done are running dry, and so the banks are compelled to revise the whole system of granting credit, especially as the Government regulations for supporting the mark make it most difficult for the banks to borrow on their own investments in foreign currency.

U PSETTIXG CONDITIONS. (Received this day at 11.10 a.m.) LONDON, May 10. The “Times” Paris correspondent says that a new European crisis has been caused by the French precipitancy in replying 'to Germany. It is certain the consequences of the blow to the Entente are far more serious than any previous division between France and Britain. The parting of ways in January was cordial, 10-clay, Anglo-French friendship has sustained a. more severe trial. There is unfriendlinoss in this parting. The British pronouncement in Parliament caused consternation in Paris which did not anticipate Britain would stand so firmly on a matter of principle ns well as diplomatic etiquette, even as the Entente was so menaced. The visit of tho British Majesties to Italy emphasises the isolation ol trance. Lord Cumin's publicly expressed resentment at France’s lack of consideration for British views has seriously perturbed France.