Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1915-05-04
ASSOCIATED Press Correspondence

ASSOCIATED Press Correspondence.)
Vienna. April The oancial Frernden-
blatt publishes an article by the director
of the Allgemeine Verkehrsbank on the
financial defensive power OF Austria
Hungary, in which he asserts that the
economic system of the dual monarchy
has proven and will prove equal to the
great tasks imposed upon it by the war.
To the most intensive exploitation OF
the available working forces. to the will
ing submission of the people to national
regulation Of nourishment. and to the
sound basis Of the industrial and econo-
mic life, he said. is due to the fact that
nowhere a trace of a crisis shows it,
self"
Pointing to the success Of the Austro-
Hungarian war loan. he notes that the
decrease in bank deposits as a result OF
this loan amounted to only three per
cent, or Coz. 10000 crowns. G15o,eW,en)
which in view Of total deposits of D.
600 90 crowns, justifies the assertion
that the war loan for the greater part
was paid from out Of our economic re-
serves, go that the deposit accounts In
Austro-Hungarian banks remain intact
las a matter of fact" he continues,
"the deposits in the larger Vienese pri-
vate banks. not considering the Postal
Savings Bank increased during the first
two months Of 1915 by 100000 crowns.
i.e., IL per cent. This ratio was un-
doubtedly higher in the provinces.
"a further war loan is at the moment
- - ,,o<%ar - actual Occurrepca hi,t
is certain il a new appeal to the people
should be necessary. the next war loan
would be fioated on terms even more
favorable than the first. For the present
ample provision has been made for imme-
date needs by the issuance Of 3,Soo. 10000.
I'm case a longer duration of the war
has to be reckoned with. and II the costs
are estimated at 100000 crowns, the
country could have to raise additional
taxes Of about 100000.
THE Austro-Hungarfan debt at the
end Of 1913 amounted to 5000, 900 900
crowns. of which 10000. 10000 comprise
railroad investments. 30 that more than
half Of the national debt consists Of pro-
ductive expenditures. The budget re-
ceipts Of the two countries since 1900 in
creased nearly 3.0ooooo.0oo. In Austria
the annual taxable income of the people
when estimated last was nearly 1000, 000,
Co., The wealth Of the people Of Austria
is estimated at 100000. 600 900 crowns. The
normal value of the agricultural produc-
ton has risen to nearly 5000, o00. COO yearly
The elasticity Of the state budget for
both monarchies therefore permits the
covering Of the interest requirements OF
the war costs without any injury what
ever to the economic life Of the country. -
The article controverts the assertion
that Austria-Hungary il meeting ita
money requirements in connection with
the war by drawing on the Austro.
Hungarian Bank, and points out that the
financial department had received money
neither from that bank nor from the
Postal Savings Bank. but that in issuing
the war loan 1t had relied upon an Aus
trian bank syndicate which together with
. Hungarian syndicate Of equal rank
was available for the credit requirements
Of the entire country and would show
itself equal to any further tasks.
The injuries done to the economic life
Of Austria-Hungary by this terrible
war;" he says. ARE infinitesimal COM
pared with those wrought In other coun-
tries. because the economic life Of this
country 10 based chiefly ON it, own home
resources, and because our part in the
affected international txafac II only mod
est
The article concludes - follows: THAT
the monarchy heretofore had to adapt
herself to conditions and build up IT.
economic systsn from M own resources
proves Of great advantage now. She can