GOLD LEAVES GERMANY.

Taihape Daily Times, Volume 7, Issue 311, 12 October 1915, Page 8

GOLD LEAVES GERMANY.

LONDON, August 13 ! The city editor of the Daily Mai! Lays that although the stoppage of im ports nieantf that Germany has not so I much to pay for in gold, yot the financial strain imu! soon make itself felt 1 A,part from burro.ving in her money [market, she has raised £fi7G,OUO,OGJ in 'two loans, and she is preparing t." .'> sue a third in September: but much of these loans are paid in Govfrr.meut paper money, for which there is riot \ sufficient gold backing. That U shown by the fact that German cuirc'iioy is quoted at a discount all over tin. w.-rid. In the United States it is ditilci.il: to get ory quotation at all now. The latest uotations from various centres show that money which Germain herself regards a. worth £IOO i- regarded by the rest of the world as ;iot worth £75. This depreciated paper Iras to be accepted by the German farmer, tor instance, at its face value., in exchange, for the foodstuffs with which he supplies the troops. That he will not go on- accepting it, having regard to its continued depreciation, seems to financed authority certain." The farmer will begin to see that there is grave dou. of his ever getting the money for the paper which is forced upon him. The city authority finds it impossible to believe that the large gold reserve which Germany boasts in her Reichsbank returns really exists, in spite of all the scraping together of gold which she is practising at home and '"abroad —she evidently gets -much out of the gold leakage from this country. In his expert eye the returns, with their steady increase week after week in gold holding, prove too much; such a steady increase is impossible. For one thing, the neutral countries with which Germany can stll trade now demand gold and get it, as the returns of their banks show. A year ago the Bank of the Netherlands held 13 millions sterling of gold, it now holds 30 millions. Sweden and Norway held 8 millions: they now hold nearer 10. Switzerland held 7 millions: she now has 9, and so on. The increase must be due to German payments of gold, and yet her gold holding goes on steadily increasing—according to her own returns. She has had to begin to pay out gold,-and when once an outflow of gold begins it has a habit of assuming large proportions. /