WELLINGTON NEWS

Hokitika Guardian, 28 May 1925, Page 1

WELLINGTON NEWS

GERMAN PAPER MARKS. (Special to “Guardi-Ji”.) WELLINGTON, .May 25. The Consul-General for Germany advises that all Reiehshank notes issued prior to Otcoher l.ltli, 1921, will cease to he legal lender and will be valueless at the latest by July 25. 1925, and 11 lose holding same in New Zealand may exchange them at any or all branches of the Eeiehfiank at the rate of one billion marks to one Reiehshank (R.M.) fix- d by the German Legislature in aceurdanre with the Dawes plan. Thus a great national swindle comes to amend. Soon after the war v. hen Germany began lo look round for trade the i-sue of paper marks comni' nieil. At first 11 to exchange rate was about 50 marks to ihe C, it then began to creep up and the astute Germans took advantage of this demand, which i anie from all fpiarters of the compass, ami kept the printing machine- hard at work. The exchange rate soon wont up to three figures, and then four and live figure- and still the speculation in marks continued. When marks were exchanged at several thousands to Ihe pound hundreds of New Zealand speculators sunk thousands of pounds in the worthless paper marks, in many oliices in Wellington syndirates were formed and anything from Lid to LIOO subscribed for the purchase

of mail'.-. No amount of warning would dolor these speculators who had rpiite forgotten Germany’s attitude towards the " Scrap of Paper.” The Gormans -old the paper marks as fast as they could he printed and the exchange rate speedily ascended from hundreds to thousands to the pound sterling Lo millions and billions. There uas scarcely a civilised part ol the world that did not gamble in marks. Canada and the United States were Hooded with the paper, in Argentine and other South American Republics millions upon millions of marks acre hold. Ilio German paper marks penetrated Australia and New Zealand, Japan, India and South Africa. For a sixpence one could buy enough marks lo paper a room. As the marks were sold in foreign countries the proceeds wore retained in those countries and the Germans thus built up many millions in foreign credits which enabled them lo buy all the raw material they required. With those same Worthless paper marks they paid off the national debt, rebuilt factories and equipped thein with tlm latest machinery, and the Germans are ill a splendid position now lo compete for trade with-such

countries as are willing lo overlook the German atrocities during the war and buy German goods, considerable quantities of which are finding their way into New Zealand. Probably at the proposed rate of redemption, that is a billion paper marks for one Reichsmark which lias a gold backing and i- equal to about a .shilling, (ho amount to be received by New Zealand speculators would not exceed one shilling, for it is iiai'd to believe tliaf there are a billion paper marks in the Dominion. Many hundreds of shillings wore sent in Inlying them, and those who bought are naturally not anxious to have the fact known, and their childish faith in Gorman honour thus advertised.