Bisbee daily review., 1916-02-03
AUSTRIAN MONEY HAS
 DEPRECATED GREATLY
 SINCE THE WAR BEGAN
American Dollar Now Worth ZIG Crowns While Former ly it Brought 4.96. Other Money is Valuable.

l VIENNA. f6O. lHc American dollar was worth here 4.96
 crowns; today is sells at 7.16. Even | the money of Austria-Hungarys allied states is much above par. Normally
 100 crowns cost 80 marks, while today one may buy them at about 70. The I Bulgarian lira, which in times of
 peace was cheaper than the Austro- I Hungarian crown, stands at an aver age of 100 to 1O4 and the Turkish
 pound is worth about 27 crowns where ! formerly it was only 21
 This depreciation of the crown. in
 some cases nearly 40 per cent would gary where the causes of an econo-
 mic nature related to peace, instead of wartime conditions. The Austro- ' Hungarian crown is low for the req
 son that the paper currency of the | country, based principally on the na- ! tional gold reserve, is being deprived ! of it's base by the many purchases the ' country mas made in foreign markets | for which the actual metal, gold. haG to be exchanged. With her allies, [ Austria-Hungary still trades on the normal basis of credit, resting on an exchange of merchandise but in buy | ing from neutrals and through neu- | trals from the enemy even, nothing but the actual transfer of gold suffices. So far Austria-Hungary has been obliged to deplete her national gold stock and reserve to exactly what the average of depreciation of the crown indicates, roughly speaking. 29 per cent
 The case is analogous to that of Great Britain in her trade relations with the United States. After having realized as much credit as possible by a transfer to American holders of much commercial paper owned in Great Britain, the value of the pound sterling is being kept up by shipping has been doing the same thing, though not with the same success because her gold reserve was nearly as great as that of Great Britain.
 The exchange in the Austrian min istry of finance, made recently, is directed to the problem of bettering the standing of the crown. Of the work towards this end. the limitations of imports for which gold must be surrendered will be an important part. At the outbreak of the war not enough attention was given this, it is Said. A stiffening up by by the Austrian banks would have kept much gold in the country, but this would have talk en a financial organization which Aus tria did not have. The new minister of finance, Dr. Leth, is looked upon as the man who will supply this Having succe ssfully managed for years the Austrian postal savings in. stitution, fioated a number of large Austrian loans in the United States, England and Frence. and recently 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, it is said
 Just what tactics he will employ is still unknown, but it is expected that one of his first moves will be to close the Austrian border to foreign shipments for which specie is de- manded. 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 business on gold exchange" basis. Hand in hand with this would have to go a partial reorganization Of the country's com merce and industry. The recent change has placed a very capable man at the head of the Austrian ministry of commerce. and the first essentials for the work to be done have thus been secured, it is thought.
 Whatever the other details of the program may be. one thing is certain, and that is that the new chiefs of finance and commerce will strive to make Austria and, by cooperation with, and on the part of, the Hungar- ian government, Hungary. more econo- mically self-contained than they have shown themselves in the course of the war. By doing this the gold stock will be kept in the country, and the de- mand for foreign money and credit will be decreased to such an extent that a further depreciation of Austro. Hungarian paper will be warded off. Since the dual monarchy is financially sound internally. as the raising of the third war loan has shown. the task is one which few remedial mea- sures of the nature indicated above will meet, according to the judgment .s