Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1916-04-09
TEUTON|C UNION
IS NOW MAKING
SLOW PROGRESS
4
Negotiations Between Ger
many and AuStria-Hungary
for Closer Political and
Economic Relations Delayed
,...,.,.,sa Pres. CorrespondenceJ

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zurich Switzerland March "a,
Narotiations between Germany ana
,rstria- Hungary for closer poiltiea'
md economic union are proceeding
. anu slowly. Several conferences
80 heen held in Berlin, Vienna,
Budapest Dresden, Munich ana
prague but no definite results nave
been attained,
II is not only that these countries
- certain conflicting interests, but
more arc special obstacles in the way
.,nn Austria and Hungary have a
", foreign policy and COM
man army and navy, but In other re-
meets are independent states. Narl-
ans matters, and especially the tariff
s,,astian. have to be arranged from
s,n,a IN time by means OF what is CALI
ID Tho "Ausgleich" or joint agree
n,ent This is usually made for ten
pears and the present "Ausgleich" ex-
hires at the end of 1917. II mas never
been easy to renew this arraneemeht
each time it expires, as the Hungar-
ians have always sought TO wiring
some new political concessions from
Austria. one powerful party in Hun
garv even demands the introduction
n tariff barrier between the two
halves of the monarchy, in order to
holster up new industries.
To form a lasting commercial union
with Germany, Austria now demands
tbat the "Ausgleich" shalt be made
for a term of twenty-five years, but
tha Hungariaus fear TO tie themselves
mn with their industrially stronger
mariner for so long a time. They ar
cue that it will keep open the present
free customs relation between the
two countries for too long a time, and
then too, they will lose the oppor-
tunity Of gaining new concessions
each decade.
official Statement.
Ii has been officially stated that the
pending negotiations for this extend
ed term have heen Professionally con-
oluded. but on what material basis Is
not mentioned. But it is only posi-
bic 10 conclude anything like a last
ing union between the two great CEN
trail European powers when the long
er "AUsgleich" between Austria and
Hungary has been definitely settled.
Another and very powerful techni-
cal obstacle in the way of this pro-
iected economic union is the adjust
ment OF the present depreciation in
Austrian currency. The Austrian
crown is not only like the German
mark, below its ordinary value in re-
lation to the standard in neutral
state but it has also deprecated in
its relation to the mark. So long as
this depreciation continues the Ger
maan merchant would be able to buy
Austrian wares cheaply while the
Austrian would he compelled to pay
dearly in the German market. And
while this standard Of values varies,
an equitable commercial traffic be-
tween the two empires continues i'm
possible and tariffs would be only IL
lus0ry.
Germany loaned Austria Hungary
in 1914 and 1915 eight hundred mill
lion marks $500, 000,000) to pay va
rious Austro- Hungarian state obliga-
tons. Besides there were numerous
private loans, and it was hoped that
thls would tend to restore the equilib-
rum between the two currencies. But
II failed to do so. At the end of last
month the Austrian crown had de-
preciated so greatly that for 100
marks l51.50 crowns had to be paid
instead of the normal 117.S0 crowns
In peace times.
during the recent visit of the Ger
man minister of finance, DR.. Helffer-
leh' IN Vienna. a new Austro- Jungar-
IAN loan was arranged when a num-
uer OF German banks agreed to ad-
vance Austria-lIungary 200 million
marks tS5O,OOO,000) for January and
rr0sDruary and additional sums later
rms sent up the value of the crown
soineWhat. but 1t still varies below Is
per cent of the rate in peace times.
put so long as the standard of the
eluMh III relation to the mark is not
i,thuered stable and the new "Ausg-
ielch between Austrian and Hungary
~ not perfected, all attempts to bring
aoout the new central European po-
vain wa