THE PUTARURU PRESS. Office – – – Main Street ’Phone 28 – – P.O. Pox 44 (Lewis, Portas and Dallimore's Buildings.) Published Every Thursday. THURSDAY, JANUARY 17, 1924. THE MARK AFTER THE RUBLE.

Putaruru Press, Volume II, Issue 14, 17 January 1924, Page 2

THE PUTARURU PRESS. Office - - - Main Street ’Phone 28 - - P.O. Pox 44 (Lewis, Portas and Dallimore's Buildings.) Published Every Thursday. THURSDAY, JANUARY 17, 1924. THE MARK AFTER THE RUBLE.

THE decliner-: of the German mark and the Russian ruble present interesting analogies and contrasts. Alike :ti the fact that the Governments are to blame in both countries, the motives of the two Governments in the programmes of inflation were not the same. The Russian Government was brutally frank in the programme of dispossession by paper inflation. The s German Government has di--ingenu-ously tried to appear passive in the performance. In two respects that arc of fundamental importance in the matter of foreign exchange Germany and Russia are opposites. Russia is a food-exporting country; Germany is a food-importing country. When the ruble fell to such an extent that it could not be used for purchases outside of Russia that deprived the Russians of many things, to be sure, but it did not deprive them of food. If their agricultural production had been maintained the effect of the fall of the ruble would have been unpleasant but not critical. When the mark fell so that it had no buying power in the outside world the food supply of Germany was placed in jeopardy. Food she must import. Germany can, however, adopt and use foreign currencies. Germany is controlled by a small group of industrial magnates. They have widespread and very influential connections. They have balances in foreign countries. They have foreign credit, because of their connections, their known ability and the potential capacities of the Industries they control. They are famed for managerial ability, in technique and finance. Under these circumstances Germany is able to import indispensable materials to an extent that would not be possible if she were judged by her monetary situa- | Hon, to an extent that is not possible J for Russia. Imports into. Russia practically ceased when the ruble fell to a low point. Imports into Germany will not cease in the same manner, now that the mark has become worthless in the outside world. To what an extent foreign currencies may come to be used in Germany in replacement of marks, remains to be seen. For months there has been a flood of foreign currencies into Germany. A great deal of paper money is being sent over, being as valuable as gold, and for many reasons more convenient and useful. One must not be surprised to see Germany for a time a land of foreign currencies. The present mark can hardly be revised; it will be easier to establish a new unit.