New-York tribune., 1921-01-14
Allies Consider
!$3O0,0OO.OO0
Loan to Vienna
Austrian Official ON Way
Here to Enlist Aid of
American Financiers in
an Effort to Save Nation
British Head Movement
Doubt Security for Money
Will Prove Satisfactory
to Bankers in the u. S.
By Arthur S. Draper

By Arthur S. Draper
From, The TriJune's Europcon Bureau
Copyright 1921. New York Tribune Inc.
LONDON, Jan. 13.-The Allied gov
srnments have under consideration a
plan for the resuscitation Of Austria
immediate discussion of which has
been suddenly forced by the decision
OF the Vienna Cabinet to put the
eountry's fate in the hands of the
Allies.
The plan provides for an Allied
loan of about $3oO,OO0,oo0 to Austria,
to be extended in instalments within the
next five years. 1t was propounded
by Sir William Goode, British mem
Der OF the Austrian Reparations Com
mission and eX-assistant food controller
IN this country, who, on his return
from the Continent in December, pre-
d5cted that unless immediate Allied
AID for Austria was forthcoming the
government would not only collapse
but disorders. unrest and misery would
follow in the wake CT national pow
erty.
The plan has been under consider
alton for several weeks. but active
discussion of it has just begun. A
British banking syndicate has taken
the lead in the effort to obtain the
required capital. Professor Joseph
Redlich, formerly Austrian Minister of
Finance, has left Vienna for the
United States. where he expects to
see Herbert Hoover and other men
familiar with the situation in Aus
tria, and hopes through connections
ne can establish in America to enlist
the aid of bankers there
Security Not Satisfactory
1t is said the security whica Austria
- able 10 give for the loan could
hardly. prove satisfactory to American
fnanciers from. a strictly financial
point Of view, but it is pointed out
that politically there is every reason
why the Allies should support such a
loan.
Persons acquainted with the situa-
ton in Austria assert that only ma
tional pride has enabled that country
to carry on as long as it has. They
say that the country's fight against
that the hesitancy of the Allied powers
in taking definite stand toward Aus
trian economic misery will promote
the spread Of Bolshevism through that
country unless steps are taken to pre-
vent such a possibility
The Allied lack of policy has con-
vinced many Austrian leaders that
union with Germany offers their coun-
try's only hope Of future existence,
and in, Berlin the suggestion is heard
that the collapse of The Vienna ad-
RAISING to the Allies.
Action by France Delayed
Ordinarily there would be reason to
expect a clash for the possession of
the Austrian corpse, but the recent
alliance formed by Italy, Jugo-Slavia
and -Slovakia foreshadows the
possibility that these states may aid
the Allies in the task of reconstruc-
tion of the broken republic. Italy N
particular W II help in order to make
sure that there is no renewal of the
Austro- Hungarian alliance.
One unfortunate effect of the down
fall of the French ministry yesterday
will be the postponement of decision
regarding Austria until after the for
nation of new government France.
The Supreme Council is scheduled to
meet next Wednesday, but it may not
convene unit the end Of the month
Meanwhile Goode and his fellow
workers will continue their negotia-
tions. They insist that of all the ma,
plight is infinitely the worst, although
several others are in serious financial
straits Happily. most of the others
have assets in raw materials and are at
least partly selfsupp orting.
Poland presents one of the darkest
outlooks, for both economically and
financially her ostion is none too
bright. However, fnanciers and states
men believe that she can pull through
II she can avoid further military on
gagements.
Situation Called Desperate
Baron c. X. Frankenstein, Austrian
Minister to the Court of st. James's,
said to-day he had not received officia
confirmation Of the report that The
Vienna government wanted to quit, but
expressed belief that it was quite
possibly true"
minister said. "Sometning must be
done Immediately or the country viii
crumble into anarchy. The country
cannot be selfsupporting under tht
present conditions"
Discussing the GooGc plan for help
ing Austria, Baron Frankensteln said
The lending to Austria Of $500, ,000,-
900 would result in putting a stop tc
the printing Of nearly value:ess paper
money, would tend to stabilize the ox.
change rate and would permit the de-
veloprnent Of Austria's natural re-
sources. particularly her valuab,s
water power. Some OF the money wou d
be used to buy seeds.
Besides the actual loan Of money
the scheme under consideration also IN.
wolves arrangements for credit abroa.