Indianapolis Times, Indianapolis, Marion County, 2 May 1947 — Page 17

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2, 1947

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Congress Seeks Cost Of Black Market Deals in Germany Scandal, Mohumental Blunders Hinted;

Special Committee May Be Named for Probe

By PAUL R. LEACH Times Special Writer WASHINGTON, May 3—Congress has yet to learn the cost to the American treasury of sensational black market and currency operations by G. Ls, Russians and others in Gerniany in the two years since VEday. Estimates, which include “the cost of redeeming “printing press money” all the way from a few millioris of dollars to hall a-billion. " A vague ‘war department statement has raised the question whether the American government or the Germans eventu- . ally will be left holding the bag. Senators Homer Ferguson (R. Mich.) and William F. Knowland (R. Cal.) are quietly investigating the tangled tale.

ever, what Gen. Clay called “very large quantities” of occupation marks in denominations of -600,-1000 . |and even 10,000 marks showed up '|the’ American sone. ?

U. 8. Furnished Plates

“Could any ‘one other than an American soldier or civilian obtain U. 8. dollars for the allied money?” Senator Ferguson asked. “No, sir,” Gen, Clay replied. “Didn't we furnish the plates for the making of these marks?” Sena-

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A special senate special sena tor Knowland asked. Gen. Clay

agreed that we did. “80 that we furnished the plates to make a larger denomination than Officials of the state, war and ” {reasury department are reluctant Lo! marks?” asked Senator Ferguto talk about the whole business Un=| up. wouldn't be dificult” Gen | til reports, which have peer In prep Clay replied cautiously, “to make a aration since last a oo 1000-mark note out of the plates drawn together and given we furnished to the Soviets. They gress. added a dash before the serial | The story as it has been unfolded | (number) so their's can be identiso far suggests high finance, pos-ifled in that manner.”

Mr. Leach { necessary to bring out the facts.

tigation may be

made. bythe Russians from American-supplied plates, range|’

NOVEL MIDGET CAR—Charles Cooper, of Surbiton, England, likes 40 tinker with things mechanical and his hobby has paid “off well by the production of the unusual.car shown here. The noyel auto has a one-piece body. Pauline Page, his fiancee, sits at the wheel. The 5-h:'p. engine can go 70 miles an hour and makes 65 miles on a gallon of gas. Mr. Cooper believes car could be marketed for less than $1000. ;

much of that was cashed?” Senator Ferguson asked. : Gen. Clay said that this eould be learned. He promised the commijttes the information would be ob-

to the Russian soldiers for large amounts of occupation marks Filthy With Money The G. Ls then cashed the ocoupation marks for dollars until American authorities got wise and stopped honoring the marks. The official army exchange rate was 10 marks to the dollar, There were widespread reports, however, that they could be had at 50 to the dollar in the U, 8, zone, “Some of those outfits came home | filthy with dough—<good American dollars,” one member of oongress

Information Lacking That was in Noyember, 1946. The information has not yet-been. given to the committee. There has been some doubt raised recently whether the Russians did place a dash before the serial number on all the occupation marks they issued. According to members of congress who were in Germany at the height of the black market scan-

sibly scandals or monumental | “So yow would be able to tell how

dals, American G. Ls and civilians isid Joday. > re sold wrist watches and other goods ns The Ct 8, lid Shao Times

blunders. A bill eventually may be

when you have ® reset in af

* |i tors Ferguson and Knowland about

{presented to the Soviet government to cover its “publishing” activities. The senate - war investigating committee touched on the mess last fall. Lt, Gen. Lucius Clay, now military governor of the American zone in Germany, but then deputy | governor, was questioned by Sena-

{black markets. | Gen. Clay sald Americans and British issued occupation marks in denominations ranging up to 100

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