The Daily News. TUESDAY, AUGUST 29, 1922. THE SOARING MARK.
When the day of reckoning came with Germany in connection with the war, it was very generally felt that the people of that country should be made to feel the truth, of the fact that war does not pay. There ean be no question that the German nation is now fully realising that they are paying fairly dearly for backing up the militarists in what they intended should be a war of domination. The people of the British Empire have experienced the handicap of the depreciated value of the pound sterling by almost a third, yet that is as nothing compared with the depreciation of the German mark, which in pre-war times was worth a little over eleven pence, as compared with the British shilling, and now is practically of no value at all. On Friday last the German Exchange opened at the sensational price of ten thousand marks to the pound sterling, indicating the absence of all hope of a settlement with France, and the consequent panic among those who have been speculating in these paper marks in the hopes of selling them at a profit. No concern will be experienced over these speculators having burned their fingers, but as to what will ensue on the part of the German people may create some anxiety. Some idea as to the manner in which this phenomenal depreciation affects the German people may be obtained by realising that they have to spend over forty pounds for what would, before the war, cost only one pound. Shopkeepers have been increasing their prices by one hundred per cent daily, so it can readily be believed that the German people generally are in dire straits. Under the eircum- j stances no surprise ean be felt at; the attitude assumed by Dr. Wirth I in deciding not to come to any , agreement with Sir John Brad- I bury’s delegation (the object of which was to endeavor to tide = over the present reparations crisis i by some means that would satisfy France) that would endanger the people’s food supply. The reason is all too obvious—acute shortage of food would, in all probability, lead to riots, and possibly a re. volution, the preparations for which the supporters of the militarist regime have been planning for a long while past. Moreover, it is not only Germany that is suffering from greatly depreciated currency, for Austria is in even a worse plight, the kroner having in nine months deteriorated from nine thousand to the pound sterling until now it is quoted at 400,000 to the pound, a figure at which it is absolutely useless for the purpose of exchange. Even allowing for wild speculation as a factor in each case, there is still such a serious depreciation that German trade cannot fail to be seriously crippled. While there may be little or no sympathy for the plight into
■which these disturbers of the world’s peace have fallen, it is necessary to look the position squarely in the face from iue point of view of what may happen if the Germans are pressed beyond bearing point. That the leading financial and industrial magnates of that country made a rich harvest out of the war admits of no dispute, but it appears equally certain they have placed their money abroad where it cannot be raided. Under the circumstances the Allies have a most responsible and difficult problem to solve, all the more complex by reason of the antagonistic policy of France. There is a risk that, unless remedial measures are agreed upon, there, may be a total loss, besides the imperative necessity for further armaments. It can only be by the exercise of profound wisdom and statesmanship that a collapse or an upheaval will be avoided.
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Taranaki Daily News, 29 August 1922, Page 4
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635The Daily News. TUESDAY, AUGUST 29, 1922. THE SOARING MARK. Taranaki Daily News, 29 August 1922, Page 4
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