The daily telegram. [volume] (Clarksburg, W. Va.) 1901-1926, 1916-01-22
Which Have Become Rather
Low as a Result Of the
Great World War.

censor) --Formerly the American
dollar was worth here 4.96 crowns;
today IL sells for 7.16. Even the
money OF Austro-Hungary's allied
states Is much above par. Normally
100 crowns cost 80 marks, while TO-
day one my buy them at about w.
The Bulgarian Ira, which In times OF
peace was cheaper than the Austro-
Hungarian crown, stands at an aver
age Of 100 to 104 and the Turkish
pound is worth about q crowns
where formerly 1t was ony 81.
This depreciation OF the crown. IN
some cases nearly 40 per cent. would
be serious matter for Austro-Hun-
gary were the causes OF an economic
nature related TO peace, instead Oh
wartime conditions. The Austro-
Hungarian crown Is low for the rea-
son that the paper currency OF the
country, based principally on the ma
tlonal gold reserve, Is being deprived
of its base by the many purchases
the country has made In foreign mar
kets for which the actual metal
gold, had to be exchanged. with its
allies, Austro-Hungary still trades
on the normal basis of credit, resting
on an exchange OF merchandise but In
buying from neutrals and through
neutrals from the enemy even, moth
ing but the actual transfer of gold
sufices. So far Austria-Hungary has
been obliged to deplete its national
gold stock and reserve to exactly
what the average depreciation Of the
crown indicates, roughly speaking
twenty-nine per cent.
The case is analogous to that oil
Great Britain in its trade relations
with the United States. After having
realized as much credit as possible
by transfer to American holders OF
much commercial paper owned IN
Great Britain. the value of the pound
sterling is being kept up by shipping
specie to New York. Austria-Hun-
garia 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 Brit
ain.
The exchange in the Austrian
ministry Of finance, made day before
yesterday, is directly related to the
problem of lettering The standing OF
the crown. or the work towards this
end, the limitations OF imports for
which gold must be surrendered will
be an important part. At the out
break Of the war not enough atten-
ton was given this, It is said.
A stiffening up by Austrian banks
would have kept such gold in the
country, but this would have taken
financial organization which Aus
tria did not have. The new minister
OF finance. DR.. Leith, Is looked upon
as the man who will supply this.
Having successfully managed for years
the Austrian postal savings institu-
tions, floated number Of large Aus
trian loans in the United States, Eng
land and France, and recently man
aged the three war loans which the
country has raised, he has not only
the confidence Of his own people but
also high standing in foreign money
markets, 1t is said.
Just what tactics he will employ
is still unknown, but It ls expected
that one of his first moves will be 10
close the Austrian border to foreign
shipments for which specie is de-
manded. In this way supply" would
become more eager for the business
than demand" In other words the
foreign seller would find the Aus
trian buyer less inclined to do husl-
ness on gold exchange" basis.
Hand in hand with this would have
to go a partial reorganization Of the
country's commerce and industry.
The recent change has placed very
capable man at the head Of the Aus
trian ministry of commerce, and the
first essentials for the work to be
done have thus been secured, 1t 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, by cooperation with,
and on the part Of. the Hungarian
government, Hungary, more econom-
ically self-contained than they have
known themselves in the course OF
the war. BY doing this the gold stock
demand for foreign money and credit
will be decreased to such an extent
that a further depreciation of Aus
tro-Hungarian paper will be warded
of. Since the dual motarchy Is
financially sound internally, as the
raising Of the third war loan has
shown, the task is one which few