RECOVERY OF MARK.

Taranaki Daily News, 3 December 1921, Page 5

RECOVERY OF MARK.

SMASH ON THE EXCHANGE. BLACK DAY IN BERLIN. RUIN FACES MANY. By Telegraph.—Press Assn.—Copyright. Received Dec. 2, 8.35 p.m. Berlin, Dec. 2. Stock Exchange members describe the day as a black Thursday. Speculators were in a tremendous hurry to sell while there was time to save themselves. The big banks are now holding a meeting to decide whether they will continue to prop up business houses which are threatened with collapse. There is little doubt that many private bankers who do stockbroking work have been caught short and are bankrupt. On Tuesday the dollar was at 275 marks. It depreciated to 238 on Wednesday, and opened at 200 on Thursday, and the collapse of the dollar continued to 180. This meant ruin to thousands of stockbrokers and others, who for two months have been speculating heavily against German currency, and now are in a mood of bitter repentance. Many war-made millionaires will have to sell their luxury motor-cars to pay their grocers’ and tailors’ bills. So completely did the gambling mania seize men with money to burn that ruin has reached all classes of the population, teachers, clerks and girl typists falling in company with wealthy professional and social people. Poignant scenes were witnessed in the vicinity of the Bourse when the actual conditions were revealed. As soon as the mark began to improve the Government loosed official currencies, with the result that the Government has been able to save hundreds of millions of marks. Importers of raw materials and foodstuffs negotiated large foreign purchases, which will inevitably result in a fall in the cost of living. POSITION IN BRITAIN. FORTUNES MADE QUICKLY. Received Dec. 2, 8.3 pan. London, Dec. 2. Fortunes were made in a fow hours by holders of marks who had their fingers on the pulse of the market and could keep pace with the changes. The mark closed at 1100 to the £ on Tuesday, but the possibilities of a moratorium started buying, and some operators took a profit of 2s 6d in the pound. On Wednesday the belief in the improvement in Germany’s financial position was even stranger. On Thursday French, Dutch, Swiss and Belgians were also buying. The rate opened at 840 to the pound, and improved 100 in two hours, closing at 710. It is quite likely the mark will return to 500. [The mark has hardened owing to the suggested moratorium.]