Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1921-03-06
cxccc,led IN nmoun: hy Ernncc anal

exceeded III amour: by France and
In the carly months Of 1914 there
were l.6oO."O0.O00 crowns of gold in
ITS vaults. ana rs note circulation
was about 2.OOO.o60.00D 1t WAS then
doing a strictly commercial business,
It's only obligation being AN ancient
one 10 the government for III" note
summer OF that fatc.ul year It's
statement showed a Slight Increase.
IN the gold stock, wilhelm ;uly of
1914 its note issue was almoN! at tn..
lowest point. it's items OF loan, and
discounts being only about 1000 900.
900 crowns.
comparison OF this statement
with that Of the following week
showed that something had iupurnc,l
in tn" world. and that wHH tn. as
sassination Of Archduk" rcrlsnaid
ihat sth'"mcnt indicates how clearly
European finance Saw tn" posslbiii-
ties. rh" bank had lost 10000 uno
crowns OF it's gold stock. and ia.
loans had increased ny Il billion, with
issue. subsequently. events are as
clearly Indicated in tn" weekly state
n"niS. AZ during the month OF Au-
gust. with tn" declaration Of war.
another billion crowns. and by the
end of the year tho gold stock had
lost 3t0.ooo,onO crowns til" note issue
had Increased by 3 nn0 uuu 900 and
tho loans over 1000. Oc0,0
rh" demands Of the government
steadily Increased so that by the end
Of 1918 the bank had lost another
i"o"no.oo" crowns. year later ~"
eoId res"rs" had reduced to go. G0U
oon bey"ud which they apparcmtiy
ala no; dar" go. Amstria iiunEary's
war financing. apart from tho bank
VA" don" los popular looms. hut tho
desperation Of it's situation was
shown in IN" last iiv" months Of tn.
war when II called upon tn. bank
for loans Of 100 600 900 every tire"
weeks
Note is<u~ increases.
When the monarchy fell the note
iSsn" had increased to NOR" than
5000 100000 rroMus. But this WAS
hoatcd on tn" governments promise
that the banks would at ali times
i-nd 80 per cent of TIA" face valu"
OF the bonds with III" armistIc"
came "a rush on IN" banks for these
loans. k"t"""n Dctob"? ~ and Jan.
unary loans of the Austro- Hun
Earian Eank had Increased by $500
ms was further increased by another
100, 600. COO.
som" oi tn" loan items are inter
.siinE. On" bank with "A capital of
'.ou1.oOO crowns was loaned 100000
o"" an insurhnc" company capitalized
at 6.oGn.ung ~a!, loaned 200. 900 600
whi." the privm'" 1Urs" of Tn" Vail
IAN WIS handed 3Oo006"o. tn" Sc
curity for these loans wcr" bonds az
tn" monarchy already fallen aud
which none az the succession states
haye been willing 1" father
The peace cOuf'r"nC" failed TO solve.
resulting from tn" dism. rrb"rinrnt at
~" empire. or. As on. expert express
To solve it." The plan pi tho treaty
was To compel each state TO with
draw from circulation the notes IN
us territory ana substitute therefor
be put In liquidation ana us assets
divided among The succession 1tnr,s
IN proportion TO IN" notes issued be,
withdrawn by them from circulation.
signing Of treaty Delayed
The treaty VAS no, signed uu,H
nearly ten months after the aruiS-
tic". and not ratified for nearly a
year after, SO II became, inpossibl"
To separate by means Of idcutlHc:.-
ton tn" notes ISSUED b"for" that date
from those ISSUED after b. Obvious
~, ia" latter cinss hccar'r chHgr"
against tn" Austrian republic alone
whenever IN" notes might 10" h"ld.
Th.-.r wor. some ~ n,. problems
The liTuidators faced when they took
M 'l"ir duties IN Juiy last.
They found mote issued 90 - 900
400 600 crowns wholly apar, from
substantial obligations TO dopositors
Tor whose protection NO provision had
been mad" in tn" treaty. ~ assets.
ther" "crc in ia" Vaults som" 22o.-
100000 Of gold securely boxed for
hurried r"rnova N even, OF commu-
nirt;c attacks. There ~"r" Obliga-
lions of the old monarchy totalinEi
many billions. and thor" w"r" again
tn. loans upon war bonds.
tn" tusiro-i iunrarinu Bank had
mary branches. It's power reached
throughout IN" empire, and nearly all
pC tn" branches We're housed in it's
own huildiurs. many az them very
valuable" They. buildings w.ro
succession states. which ar" still
using them under more or less vaGu"
promises 10 pay for. ihcrn
Thor" w"r" few debts to creditors
IN neutral states all puyabl" in for
"ign Currcnrics Thcg" the bank was
r-cparsnE 10 pay on the theory that
they constituted a different class OF
dchtS from INC Tired enable bank
notes. With these paid there would
remain fOr distribution among tho
succession states. making allowances
for buildings seized. tho remaining
gold. In addition :" some balances
abroad. "a Enrlnnd Franco and tho
United states. wE.'h had hc"n seized
by she's" governments.
M ore seems anxious 10 accept i,g
loans. SO this on"" great institution
IS being liuuida;cd IN. executors
iindin- only = few millions In gold
." contribute To It's billions Of debts.
No on" pays attention Ia the share
holders. many OF whom are ma ioualS
OF neutral countries which had no
part in tn" making OF tho treaty.
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