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Hokitika Guardian, 24 September 1923, Page 2

At tlie moment, events in Germany appear to be trembling in the balance. Herr Ktreseniann and bis Government apparently are sincerely intent on reaching a composition with Fiance, but they are faced l»v internal as well as external difficulties. The conditions of economic disorganisation in Germany which have forced the hand of the Government at the same time raise the possibility that turmoil and disorder may develop apace in the Reich if an understanding promising stability is not ,Vea died with little further loss of time. Germany seems to be at length incurring the full penalty invited by the wild-cat- inflation of her currency. Unemployment is now becoming widespread, and it is becoming more and moic difficult for work people still in receipt of wages of fabulous nominal amount to obtain the necessaries of life. The experience of other countries makes it fairly certain that these troubles will for a time be intensified as measures are taken to set a period to • illation and establish a stable currency. A state of affairs is thus in any case developing which must be expected to favour the disruptive activities of the German Communists, and also those of the military party in Bavaria whose members are now proclaiming that their State must play such a part as Prussia played when Germany cast- off the yoke of Napoleon. There is an extreme contrast between the conditions of to-day and those of the years in which the star of Napoleon was on the wane. It is certainly not in the interests of European peace and reconstruction, however, that the military pressure France is well placed to impose should be carried to the length of precipitating internal chaos ill Germany. An agreement regarding the conditions in which reparations are meantime to lie paid would impart to the situation an element of stabiliy which mi all grounds it greatly needs.

Thk soaring propensities of the German murk to equal an equivalent value

of a pound sterling, seem to know no limit. Millions of marks .are required now to equal a value of £l. As a financial paper remarks, in a sense it does not matter very greatly whether five million or ten million marks are the equivalent of a £ sterling supposing the marks are as easily obtainable as when the quotation was 100,000 to the £, as it was earlier in the year. But. an inevitable result of the depreciation is a great rise in real prices in Germany (not merely mark valuations), and an inducement to hoard food and other commodities by profiteers and speculators, thus accentuating the discontent of the people and threatening disaster. The fall in the value of the German currency has been reflected in fresh depreciation of sonic others, particularly Polish marks and Hungarian kronen, which have reached fresh depths of depreciation. But of late French and Belgian francs and Italian liro have shown an ability to resist the sympathetic effect of each day’s fresh slump in the mark. One thing is fairly clear, namely, that the authorities in Germany have no control of the currency situation, every day adding huge amounts of marks to the total outstanding, from which it is difficult to resist the conclusion that eventually Germany must be compelled to repudiate the present paper mark:. Probably this would have been done before had flic fear not existed that such action would have created a vc:y ugly feeling in the country. That people with fixed incomes payable in puper marks now get virtually nothing is, of course, inevitable in the circumstances.

Tin-; tiado rivalry between Wellington and canterbury for the West Coast trade is being made palpably apparent hy the activities of the Chambers o! Commerce in the chief centres. Last week at the Wellington ChamToio if Commerce, the committee reported; “Now that the Otira Tunnel is in operation between Christchurch and Westland, your committee lias looked into the possible effect it may have upon trade nlieadv built up by Wellington merchants; and wc recommend that Wellington merchants should see to it that West Coast storekeepers and others do not overlook the relative cheapness of sea carriage on most classes of goods. Owing to the railways charging by weight and the steamers by measurement, it is undoubted that some classes of goods will be prefered b.v rail, but in general we find tile steamer rates compare favourably, and we feel certain the bulk of trade can l:o retained, and even incicased by Wellington merchants if the shipping companies can provide a timetable freight service. A deputation waited on the principal shipping companies engaged in the trade and they state they aim to give a bi-weekly service and will! .endeavour to suit the convenience of merchants to see whether they can give a regular service.

say, for Tuisdn.y.-i mid Fridays. Of course, this is liable at times to be unduly affected through weather, bar or other conditions. We recommend that publicity as to comparative fates of freight as between steamer anil '’ailway be given, and we recommend that members of the chamber be circularised to sec that their travellers acquaint their clients with the services and freights offering.” Mr O. H. You lg stated that the shipping companies had promised to carry out a bi-weekly service. It was decided to give publicity to the details. An improved freight .service with Wellington will be welcomed very generally on the Const.