§ 90. Mr. HASLAMasked the Financial Secretary to the Treasury the method by which fiduciary paper money is issued in Germany and by what authority it is issued; if there is any limit to the quantity issued and, if so, what is the gauge of that limit; whether such issues are made to private firms or to syndicates 1145 with a view of purchasing raw materials from abroad; if so, is he aware that such facilities and issues of paper money-enable persons, firms, or the Government thereby to earn large profits on the transactions by the purchase of good money in Great Britain and the United States; and is he aware that depreciation of currency has the effect of lowering wages and other remunerations, thus leaving a larger margin of profit to producers in Germany which may be utilised in the further promotion of industries?
Mr. YOUNGFiduciary paper money is issued in Germany mainly by the Reichsbank, but partly through the Loan Banks which were established in 1914. It is issued by way of ordinary banking operations (advances, discounts of Government and other bills, &c). I understand that the limits which existed before the War have been suspended. The Reparation Commission is taking active steps to secure an improvement in the matter of paper currency issues in Germany as part of the general question of the German reparation liability. I am aware that the depreciation of the currency often has the effect of lowering real wages and increasing the margin of profit, and particularly of paper profits, but as to whether such increased paper profits are really available for use in the further promotion of industries I have some doubts.