Redeemable

by Aly Monroe

Genres: Spy Thrillers

Synopsis

A standalone short story featuring British agent Peter Cotton. Praise for Aly Monroe 'Monroe provides terrific and convincing historical atmosphere' The Times 'Skilful and evocative' The Economist Germany: July 1945. From poverty-stricken Madrid, intelligence agent Peter Cotton is sent to the British Zone of Occupation, first to Hamburg, then to Luneberg, headquarters of the Second Army. The troops, told to be 'conquerors, not oppressors', have discovered that in Germany anyway, they are rich and can get richer. The black market is blatant and comes in many shades and temptations - but just how high up the chain of command does it go? And what can Cotton really do about it? The Peter Cotton spy thriller series: Book 1: The Maze of Cadiz Book 2: Washington Shadow Book 3: Icelight Book 2: Black Bear Short story: Redeemable

Release date: April 4, 2013

Publisher: Hodder & Stoughton

Print pages: 36

Sample

On 24 May 1944, almost a year before the final Nazi surrender, it was agreed, as part of Allied plans for the post-war, to provide the Soviets with the plates, inks and paper to print Allied Military Marks so that there would be one currency in the four zones of occupied Germany.

The initial proposal was that a total of some fifteen billion AM marks would be printed, eleven and a half to be put into circulation and the rest to be kept by the banks for interbank settlements.

Whether the estimate that the Soviets printed some 78 billion marks is quite accurate or not, there is no doubt they printed several times more than the entire planned amount. At first the Soviets printed enough AM marks to cover six years of back pay to their army. They imposed strict rules however. Soviet soldiers could not redeem the marks for roubles and they could not send them home. They had to be spent in Germany.

The Americans on the other hand could redeem the marks for dollars and send the proceeds home. One official estimate is that 33,000 GIs sent home an average of 12,000 dollars each from Berlin in the period 1945–8. The average US wage was less than 3,000 dollars a year. At that time 12,000 dollars was amply sufficient to buy a house, a new car and a fur coat for a wife or sweetheart.

How was this done? A GI could buy a pack of cigarettes for 8 cents. A Soviet soldier was prepared to pay sufficient AM marks for the GI to redeem 10 dollars. Other items like coffee or watches had similar or bigger ‘profit margins’. A watch, for example, costing 17.50 dollars could fetch the equivalent in Allied Marks of 2,500 dollars. An American report suggests the Soviet soldiers were ‘fascinated’ by watches; more to the point, they could send the watches home where their wives were able to barter them for livestock.

Of course, this was only one result of the influx of Soviet-printed marks. The German economy became seriously distorted by the black market and rampant inflation.

Congress finally reacted when the US Army overdraft reached 271,000,000 dollars. A new German currency was agreed and that led to the Berlin blockade. It remains however that, in effect, America helped fund the Soviet takeover of East Germany. The Soviets did not even pay the agreed 17,500 dollars for the plates.

Who was responsible for giving the plates to the Soviets? Primarily Harry Dexter White. On 16 August 1948, shortly after he was interrogated by the House Un-American Activities Committee, White died of a heart attack, and the accusation that he had been a traitor has persisted. Five years after his death he even made the cover of Time magazine as such. Later Senator Daniel Moynihan’s commission thought there was little doubt he was a Soviet agent.

I am not so certain. It is clear that Harry Dexter White made sure that the Soviets would get the plates but I think this was more likely due to the experience of a powerful, arrogant man who knew some would oppose the measure. From White’s self-confident point of view however – the Soviets were still allies in 1944 – he was doing his job – ensuring a coherent strategy after the prime objective of defeating Nazi Germany was achieved.

In other words he can be accused of brisk, even cavalier behaviour – and even of outright dishonesty – towards some of the participants like the Forbes Company (who made the plates). It is interesting, however, to look at the records and see the extent to which other officials let him go ahead just as long as they took no responsibility. But I do have doubts that he wa. . .