Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1916-01-25
DOLLAR
WORTH MORE THAN
II FORMERLY WAS
Depreciation Of Austrian Mon
ey Shown by Fact That
United States Coin Has AL
most Doubled in Value.

vienna. Dee Formerly the
American dollar was worth here 4.gG
crowns. today IL sells AT ZIG. Even
the money Of Austria Ilungary's all
He'd states il much above pan Nor
mally 100 crowns Cost so marks, while
today one may buy them at about 10.
The bulgarian IRA. which in times Of
peace was cheaper than the Austro-
Hungarian crown. stands AZ an aver
age of 100 TO f04 and the Turkish
pound IS worth about y crowns,
where formerly II was only q.
This depreciation Of the crown. In
some cases nearly 40 per cent would
be q serious matter for Anstria-Hun-
gary were the causes OF an economic
nature related to peace, instead Of
wartime conditions. The Austro- Hun
parian crown ~ low for the reason
that the paper currency Of the coun-
try, based principally on the national
gold reserve. IL being deprived Of its
base by the many purchases the coun-
try has made in foreign markets for
which the actual metal gold, had to
be exchanged. With her allies Aus
tria-llungary still trades on the nor
NAL basis of credit, resting on an cx-
change Of merchandise but in buying
from neutrals and through ncntrals
from the enemy even. nothing but the
actual transfer of gold suffices 50
far Austria Hungary has been obliged
10 dopletc her national gold stock and
reserve 10 exactly what the average
# depreciation Of the crown indicates,
roughly speaking % per cent
Tho case is analogous 10 that Of
Great britain in her trade relations
with the United States. After having
rcaliz as much credit as possible BY
transfer 60 American holders OF
Iauch commercial paper Owned in
Great britain, the value Of the pound
sterling is being Kept up hy shipping
specie to New York.
Trying 10 Better Crown.
Tho exchange in the Austrian min
lstry Of finance. made day before yes
tcrduy, is directly related to the prob
lem of hottrng the standing of the
crown. OF the work towards this end,
the limitations of imports for which
gold must he surrendered will be an
important part. At the outbreak of
the war not enough attention was
given this. II Is said A stiffening up
hy Austrian banks would have ker.
much gold In the country, but this
would have taken financial organi-
cation which Austria did not have.
The new minister Of finance, Dr. l.eth.
is looked upon as the man who Will
supply this Having successfully man
aged for years tho Austrian postal
savings institution. floated number
of large Austrian loans In the United
states. England and France, and re-
Gently managed the three war loans
which the country has raised, he has
not only the confidence of his own
people but ALSO a high standing IN
foreign money markets. il Is said.
Just what tactics he will employ Is
stll unknown. but il * expected that
one of his first moves will be to close
the Austrian border to foreign ship
ments for which specie is demanded.
In this way supply would become
mere eager for business than de
mand. In other words the foreign
seller would find toe Austrian buyer
less Inclined to do business on gold
exchange" basis. Hand in hand with
this would have to 80 partial reor-
ganiZatlon of the country's commerce
and industry The recent change has
placed very capable man at the head
of thu Austrian ministry of commerce,
ana the first essentials for the work
W W Nbllt HdN' iiihN bt'it N'NNiftf ~
is thought
Whatever the other details of the
program may be, one thing is certain
and that is that the new chiefs of H.
nance and commerce will strive to
make Austria and, BY cooperation
with, and on the part of, the Hungar-
ian government, Hungary, more eco-
nomcally sclf-containcd than they
baNa shaNvn Themselves In the course
of the war. by doing this the gold
stock viii be kept in the country, and
the demand for foreign money and
credi, win he decreased TO such an eN-
tent that further depreciation of
Austria Hungarian paper will he ward
cd off since the dual monarchy Is
financially sound internally, as tho
raising of the third war loan has
shown. the task is one which few
remedial measures OF the nature in
dictated above will meet, according to
the Judgment of Interested circles.
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