The advances of the Reichsbank to industry were a pure and simple gift

From our private correspondent

Berlin, June 6. —

The Reichstag Financial Commission continued yesterday and today its investigation into the causes of the fall of the mark. The socialist representatives, the former minister Robert Schmidt and Mr. Heitz violently fought the methods of the Reichsbank which enabled industrialists to make considerable profits.

In the first months of the occupation of the Ruhr, the Reichsbank granted industrialists considerable credits intended to support passive resistance. However, it clearly appears that the industry took advantage of these advances to speculate. Industrialists bought foreign currencies when the dollar was worth 20,000 marks. They are now required to repay advances received in paper marks. As the dollar is worth 80,000 marks, German industry therefore made a profit corresponding to approximately three-quarters of the advances received.

During the discussion, the Socialist deputies proposed that the Reichsbank no longer grant credits without calculating them on the basis of the gold mark. Mr. von Havenstein vigorously opposed this proposal. He declared that the establishment of the accounts in gold marks would be equivalent to the annihilation of the paper mark. On the other hand, Germany, in his opinion, does not possess enough foreign currency to accept the calculation on the basis of the gold mark.

Secretary of State Schroeder spoke next. He tried to blame France for the failure of German domestic borrowing. He said subscribers had been crippled by the threat from the French government that the proceeds of the loan could be confiscated for reparations.

The investigation carried out by the Reichstag commission on the fall of the mark will lead to no result. The last session, however, made it clear that the Reichsbank is in common cause with the industry. The German State is ruined, but Mr. Cuno and Mr. von Havenstein at least know in which pockets the products of their liberalities go.

DE VILLEMUS