Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1914-10-28
INDUSTRY AND COM
MERGE ARE STOPPED
In Austria-Hungary - Exports
Cease, Manufactures Nearly
All Closed and Merchants and
Store-Keepers Are Without
Without Customers-Men Are
Either in Army or Tramping

Venice, Oct. 10.-Austria- Hungary's
industry and commerce have been
brought to sudden standstin by the
war. Exports have ceased; manufact-
cries with few exceptions, have been
shut down and merchants and store
keepers are without customers. The
army has absorbed the great majority
of the workers, and of the remainder
many thousands have Joined the ranks
of the unemployed.
Agricultural interests are in a some
what better. position, with prices Of
corn and cattle steadily advancing.
Although the majority of farm labor
ers have been called to the war; the
harvest for the most part had been
gathered before they left. But the land
proprietors and peasant farmers are
now confronted with the difficulty Of
finding labor for the autumn field
work and sowing, which cannot all be
done by the women and the few old
men left at home
Finding the ordinary moratorium in
sufficient to protect the business and
financial interests of the monarchy
the government has been forced to re-
sort to other expedients to prevent
total collapse of the industrial and
mercantile fabric. War credit banks
and loan institutions have been found
ed to finance necessitous business
enterprises, and a system of official
supervision of insolvent firms has been
inaugurated to prevent an oyerwhelm-
ing number of bankruptcies.
The first of the war credit banks is
being opened in Vienna, with the cap
ital of $1,200,000 divided into shares Of
5000. The purpose of this bank is to
lend money to manufacturers and mer-
chants to enable them to meet current
obligations in bills and acceptances
and other commercial paper falling
due, and it's operations are limited to
Vienna and Lower Austria.
For smaller manufacturers and the
middle classes of merchants and trad
ers chain of local institutions is be-
ing organized under the administration
of the Austro- Hungarian Bank, the
state bank of the monarchy. These
loan banks will issue non- interest
bearing treasury bills which will be
legal tender in all public offices, and
also in the Austro- Hungarian bank,
| and in general for all payments not
specifically required to be made in cur
| rency. Their chief object is to tide
business houses over the war by grant
ing loans on merchandise and inland
commercial paper.
| In cases where a business house is
temporarily insolvent a special provis-
ional system of official supervision has
been instituted to enable the business
| to be continued. On the application of
/ either trader or his creditors, the
courts are empowered to appoint ex-
perts to act as guardians or trustees
to superintend the carrying on of the
business in the general interest of the
creditors SO as to prevent unnecessary
| bankruptcies.
The greatest commercial interests in
the country have already been forced
to appeal to the state for aid The
sugar industry has been especially
| hard hit and it is expected that the
refiners will take up nearly one half
of the issue of the loan banks. They
have lost for the time their best for
eign ustomers-Great Britain and
midland now they are at their wits
end to know how to dispose of the
enormous stocks suddenly accumulate
ing on their hands.
The great textile industries in Nor
avia and Bohemia are in not much
better position. With the bulk of their
operatives in the army they have had
to shut down many Of their factories,
and those which are still running are
finding difficulty in procuring raw ma
terial. Efforts are being made to pro-
cure cotton direct from America
through Italy.