The Sentinel=record., 1914-11-01

Venice October CCorrespon- dence of The Associated Press. )-Au5- | tria Hungary's industry and con- merce have been brought to a sudden standstill by the war. Exports have ceased; manufactures, with few ex- captions, nave been shut down and merchants and store-keepers are with out customers. The army has ab- sorbed the great majority of the work CTS and of the remainder many thous- ands have joined the ranks of the un- employed
 Agricultural interests are in a somewhat better condition, with pric- es of corn and cattle steadily adyaac- ing Although the majority of farm laborers have been called to the war, tn harvest for the most part mad been gathered when they left. But the land proprietors and the peasant farmers 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 expedients to prevent total collapse of the commercial and indus trial fabric. War credit banks and loan institutions have been founded to finance necessitous business enter prses. and a system of official super vision of ilsovent firms has been h. augurated to prevent an overwhe!m' ing number of bankruptcies.
 The first of the war credit banks is being opened in Vienna with a cap ital of $1,20O,0O0 divided into shares of $200. The purpose of this bank is to lend money to manufacturers and merchants to enable them to meet current obligations in bills and accep- tances and other commercial paper falling due, and it's operations are ltm- tied to Vienna and Lower Austria.
 For smaller manufacturers and the middle classes of merchants and trad CTS a chain of local institutions is be ing organized under the administra tion of the Austro-Hungarian Bank the state bank of the monarchy. These loan banks will issue noninterest bearing treasury bills which will bt legal tender in all public offices, anC also in the Austro- Hungarian Bank and in general for all payments mol specifically required to be made ir currency. 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 provi sional system of official supervision has been instituted to enable the bus mess to be continued. On the appli cation of either the trader or his cred itors, tho courts are empowered to ap point experts to act as guardians or trustees, to superintend the carrying on of the business in the general in terest of the creditors so as to prevent unnecessary bankruptcies.
 The greatest commercial interests in the country have aiready been forced to appeals to the state for aid The sugar industry has been especial ly hard hit and it is expected that tht refineries will take up nearly one-hali of hte issue of the loan banks. Tley have lost for the time their bes foreign customers-Great Britain ana India-and now they are at their wits end to know how to dispose of tht enormous stocks suddenly accumulat ing on their hands.
 The great textile industries in Mo ravia and Bohemia are in not m1c, better condition. With the bulk O their operatives in the army they have had to shut down many of their fac | tories, and those which are still rul ming are finding difficulty in procur | ing raw material Efforts are beinl made to procure cotton direct frcu | America through Itafy,