The Washington herald., 1921-01-31
LACK OF FUEL
ADDS TO SORE
TRADE PLIGHT
Vienna Government AL
most Despairs of Al
Lied Credits.
KRONE FLUCTUATES
Rich Iron Deposits Could Be
Used If Given
Help.
KRONE FLUCTUATES
SPECIAL corrsspoadsnOs to The Hsr.ld.)

Especial Corrsspendsnce to The HsrIld)
VIENNA. Dec. 2s (By MaiD.-Al-
though hope that the allies would
extend credit to Austria in accord
ance with the proposals Of the
Austrian section Of the reparatiOn
commission has been practically
abandoned, the food situation, which
has been regarded as extremely
critical for some time, has been
slightly improved.
This is due 60 the purchase of
10000 tons of wheat as a part of a
larger purchase of $1,000 tons which
is being negotiated. The freight has
a cen provided on credit by England,
nd the wheat itself bought on
,redit from commercial concerns,
certain securities having been put
up as collateral with the approval
of the reparatiOn commission.
Although this purchase will as
sure the continuance of the bread
ration for January, February and
March. as soon as this supply is
exhausted Austria will be faced
with the same problem for which no
solution has vet been found.
During the past week the eN-
change market has fuctuated more
than usual There was a rumOr at
one time that the Austrian money
was to be stamped, which caused
the krone to drop to 725 for the
dollar. followed by a rapid reaction,
however, which brought the ex-
change up to $40. and now it is
back at about $50 to the dollar.
These extreme fluctuations make
il practically impossible to do bust
ness, particularly with foreign
countries, Is the speculative ele-
mcnt Outweighs any reasonable
business margin, that can be calCu-
lated upon. Ths condition is, Of
course. reflected throughout Au-
sJrian industry by further restrict
. Thioh is now so FAR below require
ments that the great majority Of
industries are working at only a
small per cent OF their capacities
Il IS sometimes assumed that. out
side the city of Vienna. conditions
in Austria are not so desperate.
The same causes. however. which
Nave brought about the paralysis
# industry in Vienna are present
IN other sections Of Austria es-
DeciaIly those in which large per
rentage of the population has been
engaged in mining and manufac-
turing.
In Styria. for example. about 500
900 of the total population Of 1000.
400 live in towns and cities and
are supported by industry. Rich
deposits of iron and magnesite make
the iron industry the most impOr-
tant of this province. Were it pos
sibIe for this industry to develop
to it's full capacity. it would pro-
duce enough pig iron and manu-
factureC iron for all Austria's needs.
as well as large quantities for ex-
port.
Dozen Important Plants.
There are some ten or fifteen
important iron and steel plants. be-
sides many smaller concerns
At the present time, however. only
zone blast furnace is working. the
I others having been forced to close
on account of lack Of coal and coke.
In addition to the iron industry
there are a number of wood pulp
and cellulose factories. which are
likewise restricted in their opera
tions by the lack of coal.
In other provinces the condition
IF industry IS not unlike that in
Styria- The textile Industries are
handicapped not only by the fuel
supply. but through their inability
10 obtain raw materials.
The number Of sawmills has been
increased during the past two or
three years and factories which
manufacture wood products are still
able tc continue in operation. 1t
Is quite generally realized that for
efgn c-edks alone will not be sufi-
rient 70 rehabilitate Austrian in
dustrv. fer the matter of raw ma
reriaIs is only half the problem.
Coal and coke are equally essen
.iai. and unless the Austrians are
able To effect A rapid development
~ their waterpower resources, their
economic recovery must necessarily
be slow.