THE GERMAN MARK.

Taranaki Daily News, 16 October 1922, Page 5

THE GERMAN MARK.

MOVE TO CHECK ITS FALL. PREVENTING SPECULATION, -~l ...By Telegraph.—Press Assn.—Copyright. Berlin, October 11. Cabinet unanimously decided to issue ati ordinance limiting speculation in foreign currencies in order to prevent a further fall in the mark. The Government has decided to introduce drastic legislation to prevent speculative traffic in foreign exchange. It is proposed that every contemplated transaction in foreign exchange shall first ibe submitted to the finance officers, who shall have the power to veto. It is also proposed to issue a loan of 400 million gold marks payable in foreign currency or paper marks at the gold rate. Bills will be repaid in paper marks at the gold rate, bearing 4 per cent, interest in gold. The loan will be issued on the security of the export duty and the coal tax. CONTROL OF GERMAN FINANCE. REMEDY FOR PRESENT CHAOS. Paris, October 12. The Matin, referring to Sir John Bradbury’s proposal for the control of German finances, ■which is now 'before the Reparation Commission, says that Sir John Bradbury is of opinion that to deprive the Government of financial powers is the only remedy for the catastrophic condition of German finances. At the present rate of 3000 marks to the dollar Germany’s total fiduciary circulation of 350 milliards of paper marks represents only 116 million dollars, which a country, whose resources have been so thoroughly utilised as those of Germany, could find with little difficulty. It is necessary that the unwise phrasing of the Treaty providing that Germany shall pay according to her abilily shall cease to be dogmatically interpreted by certain and the introduction of a new money system is essential. Germany’s restoration will become possible Iby real control. Berlin, October 12. President Ebert has decreed that all speculative dealings in foreign currencies shall be punishable with imprisonment. This is regarded as the first genuine attempt to re-establish the mark and to meet the reparations. ANTI-GAMBLING DECREE. Berlin, Oct. 12. Instead of awaiting the legislative process, President Ebert to-night, under his powers to make laws where necessary for the restoration of public safety, signed a decree making it a penal offence, punishable with three years’ imprisonment, to demand or accept foreign currency in any business transaction. It is concluded in Germany that bankers and others are similarly liable if they connive at the .purchase of foreign currencies for speculation and investment. Certain banks and certificated traders are excepted, where ordinary business needs demand the purchase of foreign -securities.

The Berlin correspondent of the Morning Post describes the decree as of paramount importance. It is the Government’s first genuine attempt to strengthen the mark, to facilitate payments for the importation of necessaries, and to meet the reparations responsibilities.

The decrees wero issued after the Bourse had closed, in order to prevent final plunges in the foreign currency market.