To the Editor of the "Norra-Cuina Datty News."
Sir,—No reply having so far been published to the letter of your correspondent "Millionaire in Marks" which appeared in your issue of the 28th instant, this gentleman is no doubt beginning to feel that his letter has failed to excite the slightest interest.
Incidentally, I was also a depositor in that deplorably mismanaged Bank, but in sterling, and fortunately I withdrew my mite a few months before the regrettable crash came, to invest it in the Municipal Gold Loan—what a great piece of luck!
You correspondent is evidently a tyro in banking procedure, or he would never entertain hopes of the bank repaying Mark deposit accounts in taels at the rate of exchange at which the depositors bought their marks through the bank. That would be utterly impossible, and contrary to established banking customs as regards exchange, and in fact against sane; business principles: To illustrate the point more clearly to your correspondent: If a man bought £10,- later the exchange went up to 3/7d, it would be impossible for him to return the £10,000—no matter in what form it might be—and ask the Bank to give him a cashier's order for the amount of taels he actually paid for the £10,000. He must either keep the sterling, or bear the loss if converted into taels. Ow the other hand, if during the same period exchange dropped to 3/3d, that man would be wise in re-selling his £10,000 to the bank at the best rate obtainable at the time of his application, and the bank would promptly send him a cashier's order for the difference in his favour, and our friend of course would be delighted.
When the Banque Industrielle de Chine repays (and that will be a matter of time) its mark deposits, it will be in marks, or in taels ab the current rate of exchange on date of payment. The same of course will apply to all other deposits made on a gold currency I am sorry for "Millionaire im Marks" and other dabblers in marks for the certain loss which they will sustain. At the same time I cannot refrain from remarking that these people's choice of this particular form of speculation discloses a lamentable lack of business acumen, as they must have known the condition of Germany and the fact that she would be the last to recover from the disastrous effects of the war. I also wish to state that, as the majority of these speculators are of allied nationality, their lust for gold would appear to rank above everything else.
I am, ete.,
Text read from the printed page and cleaned; old type leaves the occasional error.