The New York herald., 1922-06-18

sending its buyers to Vienna and 1t
means to continue this practice.
Important as this kind of production
may be for great portion of the Aus
trian population and for certain trade
categories in America, 1t is not the
chief reason for the official interest
taken in Austria by America. The In.
stitution of a trade commissioner in
Vienna has mainly been created on ac-
count of Austria's Importance as a
financial and trade center in eastern
Europe. Mr.. Upson has to cable exact
reports of Austrian developments to his
office in Washington every month and
to supplement them by still more ex-
tensive mail reports.
He said in his lecture that his office
and the American public are much in
terested In the Austrian iron, steel, tex
tile and wood industry and In the big
water powers, which wait for exploita-
ton and conversion into hydro-electric
power on grand scale. only a small
percentage of them being aready used
for electricity The question of win
ming foreign capital for technical in
vestments. especially hydro-electric In
Vestments. is of paramount Importance
for the future of the country, as it Of
fers possibility of emancipation from
the costly imports of coal. which now
make the Austrian trade balance hope
lessly passive.
With a few exceptions It was mot
yet possible to get much foreign capi-
TAI Tor these purposes. owing to the in
staplilty OF the Austrian currency
which keeps many foreign investors
from risking the conversion of their
money into Austrian crown shares. II
the still available Austrian water pow
ers were converted into electric energy,
they would yield a total of two and a
halr million horsepower and make the
country wholly Independent of foreign
coal imports. So far only 800, 900 horse
power is exploited and plants for an
other 10000 are in process of building.
If America has shown little interest
IN big capital investments SO far. other
countries have developed more initia-
tive In this respect. The chief investor
was Great Britain, which acquired
ABOUT seventy per cent. Of the Danube
shipping interests here and in Hungary,
to assure itself the control over this
important water way for the future.
ana has also won a strong position in
the Austrian banking world.
why Capital II Shy.
The main ground for the reserved at
titude OF American capital in Austrian
matters IS doubtless the still somewhat
unstable state of political and financial
conditions and the uncertainty about
what the future will bring. The Amer
lean public has not yet gained the con-
viction that Austria Is able to offer a
reasonable business risk. The often
exaggerated accounts Of the bleak mis-
cry Of the populace and Of the hope
lessness Of the prospects OF the country
has had the effect of deterring foreign
ers from regarding Austrian business
schemes as serious propositions and
the propaganda for the fusion OF the
country with Germany during the first
two years after the war. which, used as
its chief argument the tale that Aus
tria. If left alone, will never be able to
get to healthy economic conditions. has
done lot of harm
1t Is more than doubtful whether the
sudden introduction of a radical form
of democracy has been blessing to
this portion of Europe. In Austria 1t
has led to a state Of things which is not
encouraging at all. The Governments
are weak and rule only in name. They
are hampered in most of their efforts by
the street. which Is under the control of
Socialist radicalism. Nobody dares to
do anything unpopular for fear that he
might lose his job as official or political
leader. Demagoguism has become the
motto of the day. and the small profess
sional army is composed Of Socialistic
trades unionists who obey orders only If
the soldiers councils have no objection
to them.
A more conservative militia would be
a great step toward the rehabilitation of
real order and authority. But the peace
treaty does not allow 1t for fear of
revival. The same jealousies
and fears which prevent the European
Continent from political and economic
recovery also doom Austria to impo-
tence. Nevertheless there are signs that
the radicalism of the first period after
the war is giving way to more moderate
the middle classes but also among the
workers. But II Is very slow process.
Yet things have been brought so far
that Vienna may now be regarded as
safe place for international trade and
khe most suitable transit market for
Europe and the Near East
The universal raw material exhibition.
which will be connected with the next
international sample fair In September.
will be the first attempt to make syste-
matte use of the privileged geographic
position Of the city for Western trade