New-York tribune., 1919-02-13
anic Is Feared as
New States Change
Paper Money Value
Bankers Say Jugo-SIavia and
Czechs Court Disaster:
Papers Want Opening of
Industry to Ease Crisis

VIENNA, Feb. ~ (By The Associated
ess).-Bankers here fear financial
panic throughout the former Austro-
hungarian Empire because of the re-
cent efforts of the new republics to
discard the old paper kronen of the
empire by restamping them so that in
eHect they become new money. At the
present time there are about 36,OOO.
100000 kronen ($7,20O, ,O0O,OO0) of this
old paper money in circulation, while
the new Austrian state has only about
100000 COO kronen (S2OOO.O 900 ,0OlO
in circulation.
The question has an international
phase, since much of the old money in
held in the Ukraine, the Russian prov
inces, Galicia, Poland and in French.
English and Swiss banks. If the money
held abroad is not stamped it has no
circulating value in any of the new
republics
The bankers say the situation is
bound to have great influence on the
commercial future of the several re-
publlcs, which, they say are pursuing
a policy of self destruction in changing
the value of the money now in circrla-
ton.
uneasiness Over Tariffs
There is much uneasiness over the
raising of tariff walls within the for
mer empire.
Walter Federn, editor of labor
journal, told the CORES spondent that
the question of credits in the new re-
public was most important
GAS for the debts of the former en-
pre-, amounting to 10000. 100000
crowns" said Federn, eve Austrans
must take our share, and if the Poles,
debts, so much worse for them and
their citizens, who are large holders of
the war loans.
ut seems to me in the currency
questions, with the Czechs and Jugo-
Slavs stamping money and refusing our
crowns. it is case for all of US to
sink or swim together. If all adopt
new moneys and refuse to accept the
money of other republics it will result
in a mercantile balance. If bankruptcy
strikes one country it will strike all
of them, because all will have the same
class of currency"
Laws Compel Stamping
The fashion of stamping the old
AuStro hungarian kronen began in
JugoSlavia. A rubber stamp was used
and each city Iseo a different form of
stamp. A law was passed that no paper
kronen would have a circulation value
unless stamped.
The Czecho Slovak government then
declared that no more kronen should
be imported into its territory and also
prohibited outside banks from trans
ferring into Czecho- -Slovakia the Aus
Hungarian banknotes, which CORE
spend here to the Bank of England
notes in England. The Czechs also be-
gan to stamp the notes.
Presumably the Australian republic
Will also begin to stamp the notes, so
as to protect itself against an influx
of unstamped notes.
The Czecho-Slovak government is
also reported to be preparing to issue
new money in the form of the French
francs. Up to this time the Hungarian
government has taken no action in the
matter
Professor Coolidge. head of the
American Economic Mission to the for
mer empire, is preparing report to
the American delegation to the peace
conference on all aspects of the finan-
cial situation. Local bankers and busi-
ness men have been in consultation
with him on the subject