Frankfurter Zeitung from 1922: Without emergency money, there is a risk of unrest

Frankfurter Zeitung from 1922: Without emergency money, there is a risk of unrest

AFrom local administration circles we have been written from Berlin: “It is absolutely correct that the issue of emergency money must not lead to controlling one’s own shortage of money and that the Reich finance administration must exercise strict control over the amount of emergency money issued and that the fastest recovery and redemption must be ensured. What is not understandable, however, is that the Reich authorities show very little understanding for the whole situation that forced the issue of emergency money.

In any case, the large cities of the Rhenish-Westphalian industrial district only approached the production of emergency money with reluctance and at the urging of mining, industry and trade, and at the express request of the Reichsbank offices themselves. They were only allowed to do so when large factories were repeatedly unable to pay their workers properly as a result of the shortage of funds, so that unrest broke out.

On the other hand, it was not necessary to attach overly aggravating conditions to the issuing of emergency money. This includes the condition that the redemption date, which could be extended to a maximum of two months, must be stated on the note itself or at least must be made public at the same time as it is issued. This significantly impairs the circulability. The transfer of the equivalent value to the Reichskreditgesellschaft mbH, which was previously unknown to the municipalities, is an unnecessary complication and is rejected by the issuing offices. It must be sufficient if the equivalent value is guaranteed to a Reich control office, even if the guarantee is given that the relevant amounts are available to the issuing offices on the redemption date.

It is incomprehensible why all these large capitals, which can be used very well in the industrial district, should all flow to Berlin. Of course, the Reichskreditgesellschaft would also have to invest these amounts profitably in order to be able to raise the interest.

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