The Allies have not as yet agreed upon an answer
to Germany's demand for a suspension of reparation payments, in consequence of the fall of the mark. After a slight recovery, the German exchange has declined still further ; the pound sterling was quoted at 2,200 marks on Wednesday. There is no knowing when the fall will cease. Austrian paper is now almost valueless, being quoted at 125,000 kronen to the pound, and it is conceiv- able, though perhaps unlikely, that German paper will go the same way, unless indeed the German Government ceases to print millions of notes daily. The Allies evidently do not know how to deal with this extraordinary situation. The French
seem to believe that German financiers have contrived to upset the exchanges in order that Germany may pose as a pauper. Furthermore, it is clear that German industry is prospering by means of the low value of the mark. On the other hand, the German Government may well be unable to buy gold, or its equivalent, for reppration payments at the present rates of exchange, and it is not to the interest of the Allies to force Germany into bankruptcy.
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