2023-07-14 10:09:04
The Reichsbank is still “intervening”. That means: Every day, it gives small amounts of foreign currency from the foreign exchange intervention fund to the foreign exchange market, ruthlessly combining demand and without being able to quickly and reliably check whether it is necessary in individual cases. Drop by drop the reserve is diminishing, the amount of which was unknown from the outset and the replenishment of which by inflows from the German export business, from the voluntary acceptance of dollar treasury bills by big industry and wholesale trade, has hardly been too plentiful.
In particular, it may come as a bit of a surprise that while the foreign exchange figures of the German banking world were made public very quickly, positive performances from industry and trade in favor of the intervention fund have not yet been reported in numerical terms. And yet it would be extremely advantageous for the further course of the policy of intervention, which is struggling with great difficulty – perhaps it would save it – if very extensive foreign exchange payments from industry and trade had been made and could be announced.
British and French
As things stand today, the position of intervention politics seems to be getting more difficult every day. It is impossible for us to prepare ourselves for a state of affairs as a permanent phenomenon that simply ignores the entire foreign demand for foreign currency, which forces the foreign owner of the mark to squander his property abroad, while at home at the same time the real satisfaction is only achieved to some extent by constant and fantastically high over-declarations can be achieved if necessary.
This state of affairs is unsustainable because it repeatedly leads to disparities between the domestic and foreign valuation of the German currency and has a direct effect on credit ruining. Of course, the policy of intervention from June to July 1923 can only be justified if it is viewed, with all its serious disadvantages for the course of national and international business in our national economy, as a product of extreme political distress, as a means of desperation that naturally only lasts for a short time Deadlines can be reasonably effective, appreciates.
At the same time, it is stated that the course of political events has a very significant influence on the further course of the intervention. The fact that Great Britain is initiating a change of front with cautious consideration for the French opponent in European politics is not decisive for the possibility of a longer continuation of the intervention. More serious and unfavorable are the long deadlines that English politics is also reckoning with in the current phase of international discussions – deadlines that the strength of the German economy could not be able to cope with in the long run and for which the intervention forces of our attempt to support the market will one day find themselves may prove inadequate. So it is understandable that the situation on the foreign exchange market in Germany continues to give cause for serious concern.
#dividend #ride #tram #Frankfurter #Zeitung