11 JUNE 1937, Page 18

fro the Editor of THE SPECTATOR.]

Sia,—Having lived in Germany since 5935 I am at a loss to know why your correspondents should base their comparisons of prices in Germany on the present nominal exchange rate of 12 RM. to £. If this rate accurately reflects relative purchasing power, prices in Germany (measured in sterling) rose by about 40 per cent. between November, 5931, and the winter of 5933 (during which period the £ fell from 20 RM. to about its present level). Actually the purchasing power of the mark remained practically unchanged during this period, and its value in goods relative to the £ also remained unchanged. Surely therefore one should continue to base one's comparisons on the rate of 20 RM. to the £, not because this is the present register mark rate but because it was the rate when the exchanges were free, whereas the rate 12 RM. to the £ is only one of at least four existing rates and bears no relation to pride levels.—Yours,