asked the President of the Board of Trade how much the exchange value of the German mark has depreciated as compared with the £ since the passing of the Safeguarding of Industries Act; and to what extent this depreciation has affected the sterling cost of importing into this country the leading classes of German manufactures?
On 19th August, 1921, the date indicated in the question, the closing rate of exchange on London in Berlin was reported as 307 marks to the £. The closing rate on Friday, 7th July, 1922, was reported as 2,350 marks to the £. I am unable to state the extent to which increased costs of manufacture in marks have, in individual industries, offset the lower value of marks in sterling.
asked the President of the Board of Trade whether there are any indications that the costs of production in Germany are rising as the exchange value of the mark is falling; and what is now the internal value of the mark as compared to its external value in sterling?
Concurrently with the fall in the value of the mark in relation to sterling, there has been a rise in the principal costs of production in Germany. I need hardly point out that there is generally some delay in the adjustment of German manufacturing costs in marks to the exchange value of the mark. As to the last part of the question, I have no later information than that contained in the reply given on the 26th June to the hon. Members for Oldham and Derbyshire West.
Can the right hon. Gentleman say whether this collapse of the German mark is affecting the export trade of this country and of our colonies to Germany; and, if so, is he making that view known to the Cabinet?
Are they doing anything in the matter? Is the right hon. Gentleman aware that British trade is being paralysed by this collapse of the mark?