29 NOVEMBER 1968, Page 28

Sir: Whilst I understand the reason for a re- valuation

of the DM in the present lamentable condition of the world's currencies, I fail to understand the ethics of it or the harsh stric- tures on Germany, notably by yourself- (22 November).

I am not particularly an admirer of modern Germany but since I played a small part in the currency reform in Frankfurt in 1948 with the Allied Bank Commission I feel somewhat in- volved and not without sympathy for a country which is unwilling to tamper again with its cur- rency yardstick.

It takes two to have a quarrel and it takes two to create a revaluation/devaluation situa- tion. The Germans must be astonished to find that they are indicted for an international cur- rency crisis because they have behaved them- selves industrially, economically and financially for the past twenty years.

Do you suggest accordingly, that in future the steady, thrifty nation with few industrial disputes and a hardworking, docile labour force should be penalised from time to time as their neighbours by their folly commit financial hara-kiri? It would indeed be a magnanimous gesture of Germany to revalue at the expense of an arduously created export trade, but why should virtue be so punished? I cannot see that Germany economically or financially has done anything wrong. The DM is strong simply be- cause other currencies are weak. It is a gross distortion of logic for you to maintain that other currencies are weak because the DM is strong. Moreover, I fail to see, in the long run, how a revaluation of gold is going to cure national irresponsibility. How long will such a revalua- tion last before another is demanded to assist the lame ducks? One thing all those of us, who are so square as to have studied Alfred Mar- shall and Adam Smith, know clearly: the re- pricing of gold means a pad passu inflation.- Let the fixed income persons, the pensioners and, above all, the savers beware for another human sacrifice is imminent.

Geo. E. Assinder Windywalls, Little Hallingbury, near Bishop's Stortford, Herts