Finance—Public & Private
Tampering with Credit THERE is a famous,, though, needless to, say, a purely legendary story told of the inflation period in. Germany following upon the War. Two friends, so it is stated; had a small comfortable private fortune equally divided between them. One, who was of a frugal and thrifty, disposition, invested his fortune in Government securities ; the other, like the prodigal of old, wasted his substance in riotous living, his particular dissipation being that of strong drink. At the height of the inflation period and when, the mark had shrunk to vanishing point, the two friends met and compared their melancholy situation: The thrifty brother who had invested his fortune of some thousands of marks in German Govern- ment securities, found his fortune to be valued at 24d. ; the other was also in a state of bankruptcy,. but, so runs the legend, he had carefully saved in his premises all the bottles which had contained the drink consumed, and on the sale of the bottles—which were quoted at fabulous prices—he was able to support himself and his friend for a considerable period.
While the foregoing story is legendary, it is nevertheless true that there were thousands in Germany who suffered for their prudence by seeing their savings wiped out, whilst others who had freely spent their resources upon luxurious outlays during the War were no worse off.
And the story would seem to have a moral which, however, can perhaps be the better comprehended if we bring the parable a little nearer home.
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