New Currencies

As if foreign exchange were not sufficiently complicated already, many new currency units have been created in the last few years as a result of recent War conditions abroad. The several new governments set up by the Treaty of Versailles naturally had to have some standard coin, and have thus 'been the source of several new ones. The Republic of Lavia adopted the "lat," equal to a gold French franc, or 19.3-c- in U. S. money. The Free State of Danzig chose the "gulden" of about equal value. Lithuania, however, in establishing its new standard coin, the "lit," fixed its value as equal to 10-c- in U. S. money. Poland beginning Jan. 1, 1924, introduced its new gold standard coin, the "zloty," equivalent to the gold French franc.

Countries whose former currencies have collapsed through inflation have also contributed new names to foreign exchange tables. Austria has set up a silver "shilling," following British precedents, as British bankers were so instrumental in helping her stabilize her former "krone." In place of the practically worthless mark Germany has similarly adopted the "retenmark," nominally worth one gold mark, or 23.80. The Russians, deeming their former roubles hopeless, have issued the "chervonetz" equal to ten gold roubles, or $5.15. And now Hungary has followed suit by replacing its old "krone" with a new currency called the "sparkrone."

Europe is apparently returning to the gold standard, not by redeeming its inflated paper currencies, but by practically repudiating them and creating new ones based on gold. Bankers refuse to worry about the names for their new currency units, as long as they are really "as good as gold."