New Britain Herald Newspaper, September 20, 1921, Page 5

GERMANY VERGING ON FINANCIAL DISASTER, FINANCIAL EXPERTS SAY Mark, Once Worth Now Dropped to L More The German mark, once worth 20 cents, in Thia presages a financial unheaval reaction in other countries expecting re engaging In commerce with Germany tollowing statements wired to The He quest: H. Price. 1 Finance By Theo Editor Commerco New York, Sept. 20.—The decline in marks is due to the oversupply fur- nished by the German printing press. including treasury notes and other forms of paper currency. The German circulation now out- standing Is in excess of one hundred billion marks. The gold held by the Reichsbank is only about' 1 per cent of this sum In the New York market, 10,000 marks, formerly worth $2,400, could have been bought today for $91. The mark may therefore be said to have only a nominal value here, al- though the German people will still accept it at a much higher valuation in exchange for their goods and labor. That they soon will realize its rela- tive worthlessness seems to me in- evitable. End of Paper Money. When this happens, paper money will, in fact, be demonetized In Ger- many and the country will be with- out any circulating medium except as gold and silver may be attracted by the low prices which the Germans must sell the products ot their labor in order to exist. Whether the German government will recognize these conditions by for- mally declaring a moratorium or the demonetization of paper money does not make much difference. A country in which the circulating medium is so discredited that it will not be accepted in exchange for real property cannot do much business and must suffer accordingly financlally and otherwise. I have for some time foreseen and predicted some such development and see no reason to change my opinion. Needs Falr Chance. ‘While justice requires that Germany should make reparation for the in- jurfes she inflicted and the destruc- tion that she caused, it is idle to ex- pect that she can pay the damages assessed against her unless she is giv- en_reasonable opportunity to trade with the rest of the world. Of this opportunity her late ene- mies seom disposed to deprive her by erecting tariff walls and other ob- structions to trade; the result is her present predicament, which will, I think, greatly delay her economic re- habitulation and may make it impos- sible for her to meet the reparation payments for which she is lable. By Francis Il. Sisson. Vice-President, Guaranty Trust Co. New York, Sept. 20.—The continued and edtreme depression of the German mark makes it 1ook as though it might be necessary to alter the terms of reparations in some respects. The basic dificulty is that Germany is on a highly inflated financial basis. She ia on a straight paper basis, printing paper money as fast as possi- ble. The worth. The only suggestion that Germany be given a moratorium has been ad- vanced because it was believed some- thing of that kind may be necessary to permit her to meet the reparation terme. That, however, up to thy alles. I don’t think any other material obligations aro pressing Germany that might make a moratorium necessary. Deflation Imperative. I helieve that sooner or later Ger- many will have to have a settling down or a settling up. more she prints the less it is is a matter strictly Whether this will come by a finan- clal crash or by orderly process is Than Twenty Cents, las ess Than One Cent. 18 now worth less than a cent country, which will have ity n payments from Germany or on is made in the response to this paper's re- that parat T rald in hard to forecast A radical deflation s imperative. How it will come de- pendy on circumstances Don't forget that th epresents more purcha ermany in buying g00¢ nent «! labor, nd so meeting outside obli buying raw materials. The difficulty getting raw terials from the rest of the world on her delated mark is the greatest trou- bl confronting Germany. It Germany could stabilize the mon- ey situation abroad, the cheapmess of the mark would bo no handi at home. German mark ing value in in the pay- forth, than in font and in of ma- FISH DRINK MILK FROM COW HERD Michigan Farmer Solves Mystery When His Cows Go Into Lake for Water Doster. Mich.. Sept. 20.—Frank Shelp, who owns a large herd of Jersey cows, has solved the mystery of what happened to his daily supply of milk for the last two weeks. Shelp says that when, after the herd had been driven in from the flelds at night, he found just about half of the cows had been milked dry, he thought that either gypsies or sum- mer campers along the shore of Pine Lake were to blame for the wholesale thefts. Farm hands watched the kine for a week but could find no evidence of thefts, but all said that during the afternoon for some reason the milk disappeared. Shelp himself gave up other duties and started to watch the kine. He found that in the after- noon they would go down to the lake to bathe and drink. standing hip deep in the water. It was on one of these trips, he says, that he saw a big fish swim up to the cow and drink her milk. Other fish followed. Amazed, Shelp says, he knew mno one would believe him, and he called summer boarders at the farm to witness the performance. Next a seine was secured and the fish in the basin scooped out. It was found that suckers abounded there, some welghing as much as ten pounds.| When he cut open the stomachs of | several of the fish it was revealed they had participated in the milk orgles. | that such a DA 'NINE FOR ONE MAY | - BE MARK VALUATION Stmng Likelihood That Germany Will Have to Retire Currency (BY ALBERT APPLE) New York. Sept. 2 bankers say there is a strong probabil- ity that Germany soon will call in and retire all German marks now in circula- tion, exchanging the present marks for a new kind of money. ‘Wall Street for months has believed tion eventually will be in- evitable The conversion date may be¢ hastened by the additional depreciation of the mark recently, The Bank of Germany has about 90.- 000,000,000 paper marks in circulation The gold reserve back of this curren- about one mark in gold to every 90 paper marks. Basis of Budget. The German budget has been basea on the belief that the mark can be st bilized on the basis of 10 paper ma to one gold mark. So it's probable that the new money stem, contemplated in Berlin, would exchange one of the proposed new Ger- man marks for nine of the old ones now in circulation and held all over the world. Up .to a few weeks ago, the lower the mark fell, the better it was for the German exporter. Each fall meant that money received abroad for German exports meant more at home, when converted into German marks. Germany’s Scheme. The German government has craftily regulated wages and cost of living in Germany, so that internal prices have not advanced as rapidly as thef prices in marks received for German goods in other countries. In recent months, German exports have been selling in marks at about 25 times as high as before the war. This is 75 per cent more than the same goods sell for inside Germany. Result: The German exporter makes a special profit of 75 per cent over what he could get for his stuff at home. This gives him a big gain in actual in- ternal buying power. The money flow- ing in from export sales enables him to pyramid his profits_ That explains how Germany has been able to undersell Americans as high as 60 per cent in South American and other markets. REFUSES INFORMATION London, Sept. 19.—Miss Mary Fos- ter paid $25 fine and will serve 14 days in jail for refusing to give infor- mation to the census taken. She said she was a member of the Women's Freedom league. GRASS STAGGERS KILLS. Cape Town, Sept. 19.—An epidemic among horses known as grass staggors is prevalent in t Griqualand Many valuable animals have had to b killed. TAINTING TO CHARITY. Dundee, Eng., Sept. 19. — Winston Churchill, the famous statesman, ha given the Dundee Art gallery one of his Palestine paintings, to be sold for the benefit of the unemployed. JAIL FOR BIBLE. Cape Town, Sept. 19.—Thomas Sul livan, arrested for breaking into t store of the British and Foreign Bi society and stealing a bible, was sen tenced to three month’s imprisonment GET. .- THE-HABIT-GO TO LOCKED UP TIGHT ALL DAY TOMORROW TO PREPARE FOR THE Greatest ShoeSale NEW BRITAIN HAS EVER SEEN. OUR LEASE EXPIRES AND WE MUST CLOSE OUT OUR ENTIRE STOCK. WATCH TOMORROW’S PAPERS FOR PARTICULARS. LONGSHOE CO. —International | , TUESDAY, SEPTEMBER 20. THE SALUTE OF THE DAUNTLESS 1921. YALE UNIVERSITY Women Voters sessed of the spirit of progress. with Lyme, Conn., for the ington, near future, says operation with Yale university. in October. versity lecture rooms The course will cover five days. The British cruiser Dauntless firing a salute as she entered New York harbor, escorted by Amrican naval vessels and aircraft and bearing the bodies of the 16 American fliers who died in the ZR-2 disaster in England. DAY AND NIGHT BANK. Shanghai, Sept. 19.—The Shanghai Day and Night Bank has been organiz- ed on the plan of remaining open for business until midnight. BOYS EXCEED GIRLS. London, Sept. 19.— The registrar general reports 1057 boys for every 1,000 girls were born in England dur- ing the second quarter of 1921. For Infants, Invalids and Growing Children The e —— CITIZENSHIP CLASS Under Sponsorship of League of| The first, or New England, Region of the League of Women voters is pos- New England, with its conservatism, has taken the league to its heart and Miss Katherine Ludington of as regional director, the organization is making rapid strides. | The biggest thing on the program Miss Lud- is the preparation by Connec- ticut women for the School of Citi- zenship to be held by the league in co- This is scheduled for the last week It will be held in the uni- with several Yale professors giving the lectures. Though such schools have been held Safe ik formrmsamvm Original Food-Drink For All Ages before this is the first time that such a university as Yale has co-operated. Each New England state is devel- oping its .own type of organization, adapted to local conditions. Rhode Island plans a convention for October. Massachusetts is a radiating center for reduttion of armament work. Along the latter line, says Miss Lud- ington, the correspondence being car= ried on with prominent foreign wom- en by Mrs. Charles Sumner Bird, Mass- achusetts, chairman for reduction of armament, is important. Mrs. Bird is securing the co-operation of promin- ent foreign women in bringing public opinion to bear at the time of the dis- armament conference in Washington. The University of Vermont is &s- sisting the Vermont League of Women Voters in citizenship work, says Miss Ludington. Mrs. Maud Wood Park, national president of the organization, will tour Maine and New Hampshire in Octo- ber. * PROSECUTOR HELPS. London, Sept. 19.—Frederick Por- ter had Nassa Nakana, a Japanese, ar- | rested for assault. But when ,the question of bail was raised, Porter paid the bond and walked out with Nakana. . . l Rich Milk, Mq Formal Showin of Autumn Millinery Wednesday, Thursday, Friday September Twenty-first, Twenty-second and Twenty-third. REPRODUCTIONS OF FAMOUS FRENCH CREATORS In this showing are represented the best creative efforts of the famous French designers; each hat'is ' a reproduction of a Paris model and possesses all the charm and beauty of the original creations. In addition to the above, we have Hats originated in well known New York workrooms and also a large assorment of original hats from our own workrooms. As usual, we are showing a large varlety of Ready-to-Wear Hats, Banded Hatters’ Plush Hats uu‘l Children’s Hats. Considering QUALITY and WORKMANSHIP, these Hats are very moderately priced. First to Show the Latest . 257 MAIN STREET et Wil @o, BOOTH’S BLOCK Originators and Leaders of Style