Foreign News: Marks

At one period of the week the paper mark was quoted at 2 cents a million, or 50,000,000 for a dollar. A loaf of bread costs 50,000 marks.

Draconian measures were decided upon by the Stresemann Government at a council meeting. In order to enforce stringent financial reforms, the Government has virtually set itself up as an absolute oligarchy under paragraph 48 of the German Constitution. The main agenda: check the fall of the paper mark; create a Devisenkcommissar (Foreign Exchange Commissioner) with wide powers; control all foreign exchange and bank note traffic; create a new currency on gold basis, supplemented by a possible foreign loan backed by German agriculture, industry, commerce, trade, shipping and banking; introduce immediately another fixed-value currency on Helfferich’s gold-rye basis—an inducement to farmers to part with their grain. Because retailers of beer tried to keep the price down by increasing the froth, a riot broke out in Munich, which it required both the police and the State militia to quell. It transpired that the Reichsbank still receives large numbers of one and two-mark notes under old contracts. The notes must be counted and it was reported that an able worker could count 20,000 marks a day, or one-seventh of his carfare home! Girls are employed for the task, but so hard are they to keep that the Reichsbank hung out a board: GIRLS WANTED. One plump fräulein was given a packet of notes ” valued ” at 20,000 marks. She disappeared with them for the day, but returned in the evening and handed the Reichsbank superintendent two 10,000-mark notes of her own and demanded more productive work.

Dr. Peters, quondam Commissioner for Disarmament, was appointed Foreign Currencies Controller with authority to seize all foreign currencies not being legitimately utilized for purchase of raw materials and foodstuffs abroad. Herr Peters, feared and dreaded throughout Germany, said that he thought the job was hopeless and declined the appointment. It was Dr. Peters who forced the Germans to give up their arms after the War.

Herr Havenstein is to continue as President of the Reichsbank, according to the latest report from Berlin. Hundreds of merchants informed the Government that they would have to quit business if Havenstein’s policy of lending marks on liberal terms was repudiated. The Government decided that the President had best continue in office.