New-York tribune., 1918-04-08
Germany and
Austria ! Have
Money Troubles
[Staf CorYespondence1

lStdt Correspondence
WASHINGTON. April An official
report on the difficulties concerning
money transfers between AUSTRIA H un-
gary and Germany, received here to-
day. says:
According to articles appearing in
various newspapers. German banking
interests are now cndeavorng to clear
up the difficulties which for manv
months have surrounded the German
Austrian exchange question. Since the
commencement of the war Austrian
crowns have shown a steady decline in
almost all foreign exchange markets.
and the Austrian government has been
employing various measures to i'm
prove the value Of the crown.
MANY months ago a special COM
mission of Austrian bankers ('Oester
reichisch-U -Ungarische DevisenzentraleN
was appointed for the purpose of deal
ing with the exchange question. and at
the suggestion of this commission tho
government issued decree stopping
all transfers from residents IN Austria
to residents in other countries. ex
cept as such transfers were made by
depositing with Austrian or Hungarian
banking houses credit to the account
of the foreign firms.
Ill Feeling Caused
This measure caused considerable
i'll feeling among various foreign
creditors of Austrian firms, and par
ticularly among certain German firms
VINO rad outstanding accounts with
Austrlans. The measure prescribed
by the Austro- Hungarian government
also applied to the territory Of Serbia,
and. as many German firms had out
standing accounts IN Serbia, German
association was formed for the pro-
tectlon OF these accounts under the
name of the 'Deutschen Glacubiger-
schutzverein Fuer Scrbien.' This asso
cation made representations to the
German Foreign Office, and, as a re-
suit, the German Ambassador in Vienna
approached the Austro- Hungarian gov
crnment on the subject. No satisfac-
tory results, however. were obtained.
"Ihe German Rcichsbank next de-
cidcd upon retaliatory measures. and
made rule prohibiting the payment
Of money due by Germans to Austrian
trms except as such payments were
effected by aepositing in some German
banking house the money in question
to the credit Of the Austrian firm.
However. this credit could be disposcd
of only by the Austrian firm under
special license of the German Reichs-
bank. Furthermore, the Reichsbank
announced that this regulation would
not be Withdrawn until twelve months
after the conclusion of peace.
Creditors Dissatisfied
Despite this rctaliatory measure of
the German Reichsbank, the German
creditors of Serbian firms were not
satisfied, as they were still unable to
make their collections. SO the Asso-
citation for the Protection of interests
OF Firms Having Outstanding Ac-
counts in. Serbia took the matter into
It's own hands and put itself in direct
touch with the Austro- Hungarian gov
crnment through the intermcd;um of p
large banking house in Vienna. A
short time thereafter the Austro Hun
garian restrictive measures were lifted.
ard collections in Serbia again became
possible: it is stated that over 100000
kroncn has been collected since these
lacilltles were restored
The association has recently point
ca out TO The German Foreign Office
that it has been successful in obtain
ing most of its ends, and it is row
suggested that all restrictions Of paw
ments between Austr;a-H Hungary and
Germany in either direction be com
rletely withdrawn. Diplomatic ncco-
tations are now being carried on with
thl3 end in view"