Twice in 14 months, the U.S. government has been forced to take emergency action to safeguard the dollar. And, as we rush to press, a new crisis over the dollar has developed on the European money markets. The new crisis came less than one month after the dramatic move of February 12 when West Germany and other European nations won a clear economic victory. "It's the weak dollar that's the problem, not our strong mark," said the West Germans, in effect. To be sure, Bonn paid a heavy price in February. After devaluation, the German horde of U. S. dollars was suddenly worth 10% less. But as a result of Bonn's defense of the mark, Germany's exports will cost more only in the United States and those countries realigning with the deflated dollar. If the West Germans had revalued the mark upward instead, their goods would have cost more worldwide.
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