The Birmingham age-herald., 1916-04-16
TEUTON|C ECONOMIC UNION IS DIFFICULT OF DISSEMINATION Mutual Jealousy of Austria and Hungary Prevents
 Any Permanent Agree
 ment With Germany

Zurich Switzerland, April 10.-(Corre- spondence of the Associated Press.)-Ne- gotations between Germany and Aus tria-Hungary for a closer political and economic union are proceeding very slow ly. Several conferences have been held in Berlin, Vienna, Budapest, Dresden, Munich and Prague, but no definite re- suits have been attained.
 It is not only that these countries have certain conflicting interests, but there are special obstacles in the way also. Austria and Hungary have common foreign policy and common army and navy, but in other respects are indepen- dent states. Various matters, and espe- cially the tariff question, have to be ar ranged from time to time by means of what is called the "Aussleich' or joint agreement This is unusually made for 10 years and the present ''Ausgleich' expires at the end of 1917. It has never been easy to renew this arrangement each time it expires, as the Hungarians have always sought to wiring some new political con sessions from Austria. One powerful party in Hungary even demands the 1n- troduction of tariff barrier between the two halves of the monarchy, In order to bolster up new industries.
 To form a lasting commercial union with Germany, Austria now demands that the 'Ausgleich" shall be made for a term of 25 years, but the Hungarians fear to tie themselves up With their inous- trially stronger partner for so long time. They argue that 1t Will keep open the present free customs relations be- tween the two countries for too long time, and then, too, they will lose the opportunity of gaining new concessions each decade.
 It has been officially stated that the pending negotiations for this extenoed term have been provisionaly concluded, but on what material basis is not men tioned. But it is only possible to con clude anything like lasting union De- tween the two great central European powers when the longer "AusSleich'' be- tween Austria and Hungary has been definitely settled.
 Another and very powerful technical obstacle in the way of this projected economic union is the adjustment of the present depreciation in Austrian currency. The Austrian crown is not only like the German mark, below it's ordinary value in relation to the standard Tn neutral states, but it has also Appreciated in US relation to the mark. So long as this deDr0clatlOn continues tlc CCiiiioA iiiOi- chant would be able to buy Austrian wares cheaply while the Austrian would be compelled to pay dearly in the Ger man market. And while this standard of values varies, an equitable commercial traffic between the two empires continues impossible and tariffs would be only il- lusory.
 Germany loaned Austria-Hungary in 1914 and 1915 s0O,000 GOO marks G20o, GOO 0o0) t3 pav various Austro-Hungarian state otligations Besides there were numerous private loans, and it was hoped that this would tend to restore the equilibrium between the two currencies. But it failed to do so At the end of last month the Austrian crown had Appreciated so great ly that for 100 marks. 151.5O crowns had to be paid. instead of the normal n7.@ crowns in peace times
 During the recent visit of the German minister of finance Dr. Helfferich, in Vienna, a new Austro-H Hungarian loan was arranged when number of German banks agreed to advance Austria-Hu gary 200 COG. 900 marks ,Uvc) for Jan uary and February, and additional sums later This sent up the value of the crown somewhat but it still varies be- low 10 per cent of the rate in peace times.
 But so long as the standard of the crown in relation to tine mark is not rcn- dered stable. and the new "Ausgleich"