Evening star., 1922-07-02
AUSTRIAN FINANCE
IN DESPERATE CASE
New Reactionary Cabinet
Faces Worst Economic Con-
dition Due to Vast Initiation.

VIENNA, June 12.-With the Chris
tian socialist -pan-German coalition
ministry formed in succession to the
Schober non-partisan, bureaucratic
cabinet which fell recently Austria
has entered upon another experiment
in government.
Ministry has succeeded ministry
since the social democratic majority
was overthrown in the eiectfons t"o
wears ago and left no party with
working majority in the national as
sembly. Each. has assumed ONCE un-
der greater difficulties than ITS preo-
ecessor Despite the superficial pet
terment in living conditions. due 10
widely bestowed charities and foreign
credits. sufficient at least for 1000
and the fact that the constantly de-
preciating, money increases In guam
tity and still has internal purchasing
power. this new ministry races . an
actual economic and financial situa-
ton conceded to be worse than mas
hitherto existed.
When the Seipl government took
Office the krone was 1l,3Oo 10 one
dollar. 1t is stated that the recent
British credit was virtually used up
in an effort to stabilize the currency;
For two months this policy succee eeaeo
in holding the krone around 7;ooo
to the dollar. but recently the dam dn
broke and 1t fell at the rate OF l'ooV
kronen day.
Higher Pay Demanded.
Prices of necessities have risen to
world parity and above, and the new
municipal socialist rental tax. while
Welding the landlord. nothing, has
increased rents enormously Ihls
tax goes to the city for bulldihs
and repair fund for the amelioration
of housing conditions.
The consequence has been the nat
ural one of demands for higher pay
by all classes, from government en-
ployees to unskilled labor. The re-
cent Schober government granted tne
enormously increased demands OF the
civil servants and met them, tosetheL
the money printing presses unti,
the currency circulation has reacheo
the astounding total OF over
100000. 10000
Industrial employers. however. have
offered resistance zee Gan and IN tSey
have denounced existing wage agree
ments. The issue has become sharp
one. So far the labor unions nave
shown a moderate and conctliatory
spirit and have avoided an open
break.
Employers claim they can no
longer manufacture for export in
competition with Germany, Where
wages and living are Tar lower than
in Austria even on gold basis. Inc
instability of the krone. its wide ana
sudden fluctuations. also make 1t I'M
possible, they say, to deal In 1uture
contracts. Export is practically at
standstill and there is wide unem-
ployment.
Socialists in Minority.
This is the situation which con:
fronts the bourgeois ministry OF
Monsisnor Seipl, by far the most re-
dictionary in its makeup tnat the
republic has had. The new chancel-
lor is q cleric and considered one OF
the cleverest politicians In the
country
The Christian sociaiist-Pangerman
combination throws the socialists
into a hopeless minority In the ma
tional assembly and 1t is very freely
predicted that the new conservative
coalition will undertake to wipe from
the statutes many of the laws placed
there by the socialists when they
were in control. The socialists still
have, one weapon. however. in the
factsthat financial legislation requires
a two-thirds vote OF the assembly
which the coalition cannot muster.
The Pangermans have made 1t dis
tinctly understood that the work
ing agreement with the Christian
socialists must terminate with the
generally believed imminent elections.
At the same time they have not
abandoned the slogan of fusion with
Germany. In a recent speech their
president. DR.. Dinghoeffer, emphasized
the statement that the absence of
any clause in the Austro-American
peace treaty stipulating that Austria
remain an Independent state was
great and joyous asset"