Salt Lake Telegram | 1922-06-09 | Page 21 | Deflation in Germany Ahead

DEFLATION IN GERMANY AHEAD I Reichsbank It Expected to Show 15,000,000,000 Marks Decrease NKW YOHK Jen I Hanker Informed on tier man affelra are advised deflation will start In Herman at unee The Heir h aba nM Is esperted tn ahow a decrease of about 1. a. eoo marks within three or fur ttmht ha Industry Is slowing down. Thla , will fee tha chief contributing can ef de , nation I foreknowledge nf thee Impending Hr ; I rumetaneea has had ni h to do with tha i aailefai'lory answer to dtnatle of the re- . paratln lonimteatoa for financial reforms 1 , esper tally r dating rrrulatl'li ami Inrfni-log Inrfni-log is as linn. Impending trade drvreesiog la Herman? la also iellectrt hy recent stale menta by Mas Wsrhuig. the Hamburg banker, and Hugo (Ulnars Warburg Is said to hava warned that money waa going tn be scarce whether tha msrk roe or fell In the Immediate future, and Intimated It would be soaraa wut through lark of employment gtlnnea warned the government and banking Inter lasts t tak csre that the reli-hsmark I should not apprerlats too rapidly, and la taka a aggressive steps to force deflation, as It would prove rumuua tu employment lu manufsclurtng lines. Of tha Inereeae of about marks In Reuhabank rirculatUm el ace ! I cember 1, It la aeserted not keo than , eet) have been hoarded. Approtlm i ately ia.ea.eo.eaa have bea rntneusned bp I Inereaas in rat of living or other espenaea, 'These hoarded marks are i petted to find laaalln, and will be presented for f demplloa. An International banker as ye: There ran be little doubt now that an In tern at tonal Herman loan will be floated, Thla will be the big feature In reeeteVlslt-Ing reeeteVlslt-Ing Herman and ceulral Kuropean credit. With or without a Ivan nothing ran pre vent In duet rial slowing down, te ear " Ing of depreealon. starling In llermany. I'rlntlng of maike la pound to cease goon, for ths et in pie resaon that prlcea must drop from over production, or, what amounts te the earns thing, the eaiehing up of tier man manufacturing Costs to levels of rrnn-pot rrnn-pot ing natlona. In ether words, Utmi march ante ar finding It harder te diapoee of good abroad. All algae point to a da. fist ion almost aa rapidly ne tha inflation from Iece sneer till June, and eureljr to a deflation ae marked aa (Tta Incraaae in ptr during the auumier ef till "