FINANCIAL NOTES.
During the week the German mark has established yet another fresh low record of about 45 Millions to the £, while the Reichsbank Note Circulation, which was about one billion of marks at the beginning of the year, now stands at considerably over 60 billions.. How utterly insignificant is the present value of the mark may be gathered from the fact that one British E purchases in marks what previous to the War would have been the equivalent in sterling of about £2,000,000, while the brokerage alone on the transaction (about half-million marks) represents an equivalent in pre-War days of about £25,000. It may be, of course, that this appalling currency debauchery may yet end, not only in currency, but in social and political chaos in Germany. For the moment, however, the situation seems to be regarded with something approaching to indifference. For all practical purposes Germany has already repudiated any debts contracted on the pre-War basis, all repayments in the shape of paper marks of maturing German obliga- tions being practically valueless.
There will be general satisfaction in City circles when the Premier makes some definite announcement with regard to the appointment of a new Chancellor_ of the Exchequer. It is a matter of common knowledge that, for reasons which I have already set out in your columns, Mr. McKenna, while entirely sympathetic with Mr. Baldv.in's general policy, is unable to accept the post which was offered to him some few months ago. Never- theless, it is high time that the new Finance Minister was appointed and took over his duties, otherwise there will be little chance of his being sufficiently familiarized with the work to effect the necessary economies in the next Budget. It is now, when the estimates are actually being formed, that zeal for economy on the part of a Chancellor of the Exchequer can best be displayed by applying the pruning knife unsparingly in the Depart- mental estimates.
* * While the City still disbelieves in the advantages of any Trade Agreement between the British and the Soviet Governments, every sympathy is felt with the trading interests in their desire to open up, irrespective of all Government relations, trading operations with really reliable Russian sources. One group of important representatives of leading British industries is now in Russia investigating the position, and I notice in the Bradford Chamber of Commerce Journal the very common- sense suggestion by a London house that a number of firms concerned in trading with Russia should unite together in sending suitable representatives to investigate and report upon the prospects of opening up business relations in certain districts of Russia. A. W. K.
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