New Britain herald., 1916-04-07
TEUTON POLITICAL
 UNION UNDER WAY
Tarih, Value Of Coin and Other
 Obstacles in the Way
C (Correspondence of The Associated Press)

1 Correspondence of The Associated Press.) Zurich, Switzerland, March 27.- Negotiations between Germany and Austria-Hungary for a closer political and economic union are proceeding , very slowly. Several conferences have l been held in Berlin, Vienna, Buda-
 pest, Dresden, Munich and Prague
 but no definite results have been at 1 tained.
 It is not only that these countries have certain conflicting interests, but there are special obstacles in the way
 also. Austria and Hungary have a common foreign policy and con-
 mon army and navy, but in other | respects are independent states. Vari- ous matters, and especially the tariff question, have to be arranged from l time to time by means of what is called the "Ausgleich'' expires at the end of 1917. It has never been easy to renew this arrangement each time it expires as the Hungarians have al- ways sought to wiring some new pO- litical concessions from Austria. One powerful party in Hungary even de- mands the introduction of a tariff bar rier between the two halves of the monarchy, in order to bolster up new industries.
 Austria Wants Longer Agreement.
 To form a lasting commercial union with Germany, Austria now demands that the "Ausgleich" shall be made for a term of twenty-five years, but the Hungarians fear to tie themselves up with their industrally stronger part ner for so long a time. They argue that it will keep open the present free customs, relations between the two countries for too long a time, and then too they will lose the Oppor- tunity of gaining new concessions each decade.
 It has been officially stated that the pending negotiations for this eXtend- ed term have been provisionally con- cluded, but on what material basis is not mentioned. But it is only pOssl- ble to conclude anything like last ing union between the two great Gen. tral European powers when the longer "Ausgleich' between Austria and Hungary has been definitely settled.
 Another and very powerful technl- cal obstacle in the way of this pro- iected economic union is the adjust ment of the present depreciation in Austrian currency. The Austlan crown is not only like the German mark, pe- low it's ordinary value in relation to the standard in neutral states, but 1t has also dcpreciated in it's relation to the mark. So long as this deprecla- ton continues the German merchant would be able to buy Austrian wares cheaplv while the Austrian would be compelled to pay dearly in the Ger man market. And while this standard of values varies, an equitable conner cial traffic between the two empires continues impossible and tariffs would be only illusOry.
 Union is Gcrmany's Debt
 Germany loaned Austria Hungary 1914 and 1915 eight hundred million marks (s2OO, O,00O,000), to pay various Austro- Hungarian state obligations. Besides there were numerous private loans and it was hoped that this would tend to restore the equllibrl- nm between the two currencies. But month the Austrian crown had de- Dreciated so greatly that for 100 marks. 151.50 crowns had to be paid, instead of the normal 117.8O crowns in peace times.
 During the recent visit of the Ger man minister of finance, Dr. Helffer- ich, in Vienna, a new Austro-Hungar- ian loan was arranged wben number of German banks agreed to advance Austri-Hungary 200 million marks 5O,OOO,OOO) for January and Febru- orv and additional sums later This sent up the value of the crown some what but it still varies below fifteen nor cent of the rate in peace times
 But so long as the standard of the crown in relation n the mark is not rendered stable and the new Aus gleich' between Austria and Hungary is not perfected all attempts to bring
 tI~91 noliticol and economic union will be