Omaha daily bee., 1916-02-14
WORK TO KEEP UP CREDIT
Allied States Of Austria Hungary
Have Methods for Handling
Financial Propositions.
HANG ONTO THE GOLD RESERVE

Correspondence OF The Associated Press)
VIENNA. Jan. 9o.--Formerly the Amer
lean dollar was worth here f.es crowns.
now II sells at 7.1e. Normally 100 crowns
cost 20 marks. while now ono may buy
them at about 90 Even the money OF
Austria -Hungary's allied states is much
above par. Tho Bulgarian Ira, which in
times OF peace was cheaper than the
Austro- Hungarian crown. STANDS at an
average OF 100 10 i0t and the Turkish
pound is worth about q crowns where
formerly Il was only q.
This depreciation Of the crown. In some
cases nearly 70 per cent would be
serious matter for Austria-IIungary were
the causes OF an economic nature related
to peace. instead Of wartime conditions.
The Austro-Hungarian crown IL low for
the reason that the paper currency OF
the country, based principally on the ma
tional gold reserve, is being deprived OF
its base by the many purchases the
country has made In foreign markets for
which the actual metal. gold. had 70 be
exchanged. With its allies, Austria-Hun-
gary still trades on the normal basis OF
credit. resting on an exchange Of mer-
'chandise. but in buying from neutrals and
through neutrals from the enemy even,
nothing but the actual transfer Of gold
Buffices. So far Austria-Hungary has
been Obliged 70 deplete its national gold
stock and reserve TO exactly what the
average OF depreciation Of the crown
indicates, roughly speaking 20 per cent,
Here vaIae a. Held Up.
The case is analogous 70 that OF Great
Britain In it's relations with the United
States. After having realised as much
credit as possible BY transfer TO Ameri-
can holders of much commercial paper
owned in Great Britain, the value of the
pound sterling is boing kept Up by ship
ping specie 20 New York Austrin-frin-
gary has been doing the same thing,
though not with the same success because
its gold reserve was never nearly as
great as that OF Great Britain.
The exchange In the Austrian ministry
of finance, made recently IL directly re-
lated TO the problem OF bettering the
standing of the crown. OF the work
toward this end. the limitations OF i'm
ports for which gold must be surrendered
will be an important part. At the out
break OF the war not enough attention
was given this. Il Is said. A stiffening
up by the Austrian banks would have
kept much gold in the country. but this
would have taken q financial organiza-
ton which Austria did not have. rhe
new minister OF finance. DR.. Leth, N
looked upon as the man who win supply
this Having successfully managed for
years the Austrian postal savings institr-
ton. floated a number OF large Austrian
loans IN the United States. Engiani and
France. and recently managed the three
war loans which the country has raised
no has not only the confidence of his
own people. but also high standing IN
foreign money markets. II is said.
Plans Are Uni<nown.
Just what tactics he will employ %
|, stin unknown. but II Is expected that one
, OF his first moves will be TO close the
, Austrian border to foreign shipments
. for which specie Is demanded. In this
way supply would become more eager
for business than demand, In other
words the foreign seller would find the
Austrian buyer less inclined TO do busi-
ness on gold exchange basis. Hand in
hand with this would have TO 80 par
tlal reorganization Of the country's com
merce and industry. The recent change
has placed q very capable man at the
head of the Austrian ministry Of COM
| nerCes anu lnc tAtFSt coaouttAib IoT lnt
work 70 be done have thus been secured,
IL Is Thought
q Whatever the other details OF the pro
gram may be, one thing is certain, and
: that IL that the new chiefs OF finance
and commerce win strive TO make Aus.
{, try and. by cooperation with. and or
y = the part of. the Hungarian government
= Hungary. more economically self-con
tanned than they have shown themselves
; In the course OF the war. BY doing this tn
. geld stock will be kept in the country
and the demand for foreign money and
, credit win be decreased to such an ex
q tent that a further depreciation Of Aus
Q tro-Hungarian paper VIII be warded off
3 Since the dual monarchy is financial,
Y sound internally. as the raising OF th'
. third war loan has shown. the task Il
!. one which few remedial measures o.
the nature indieatea ahcvS will meet. &C
eeT3ing u she ia%snent OF interested
circles.