The Washington herald., 1922-07-16
IMPROVED TONE
SEEN IN AUSTRIAN
ECONOMIC STATE
Note Circulation Increase
While Living Costs
Also Advance.


ecenom'c conditions arising in June
on account of the exhaustion of the
British credit and the delays In
other credits. has not been mate
rally improved. says Trade Com
missioner Upson. Vienna. in a cable
to the Department of Commerce.
However. exchange is coming back
slowly. and the situation is clear
ing up slightly with the ANAL grant
ing of the French credit and the
ACTUAL receipt of 2o.000,o00 francs.
The Austrian government is max
ing every effort to avoid disaster.
Plans for New Bank of Issue.
law has been introduced In
Parliament to establish a bank of
issue with a capital OF 10000, 900
Swiss francs; 100000 have been
underwritten by a syndicate of Aus
trian banks. The government is to
guarantee capital and minimum in
terest; it also agrees not to demand
notes except fully covered by gold
values. and agrees Furthermore not
to issue notes or otherwise injure
the bank.
The new bank would take over
all assets and liabilities of the
Austrian section of the Austro-
Hungarian Bank. including all notes
In circulation. The crown remains
promises to redeem as soon as pos
sible the treasury certificates now
held by the Austro-Hungarisn
Bank.
Forced Loan and New Taxation,
Parliament is considering a meas
ure providing for a forced loan of
10000, 100000 crowns to be raised
from real estate and corporations.
Proposed new taxation is expected
to yield zoe. 900, 900. 900. Certain i'm
port duties, including that on crude
oil. are to be increased; and export
duties Will be introduced on ores.
magnesite, art objects, historical
objects, and other commodities.
The government deficit for this
present fiscal year is difficult to
estimate on account of exchange
variations and the necessity of SAL
ary increases from time to time:
conservative forecast puts the
dehcit at l,000.00o.O00 of crowns.
The committee on economies has
plans at present which will result
in the saving of f50. 0.000, ,o0O, 900
crowns. Added to the proceeds of
the forced loan and new taxation,
II these become operative without
great delay. this economy would re-
suit in building up a sum which
would materially reduce the con-
templated deficit.
Note Circulation Increases,
On June % the Austro- Hungarian
bank circulation amounted to 46e,-
o00,0O0,000 crowns. covered by a
gold value of 100000. Bills of ex-
change and other demand obIiga-
tions were given as $4,000. .ooo, 600
as compared with $4,000. .00O,0 the
month before. Commercial paper
held came to 10000. 100000 and
treasury certificates to 339, 900, ,OOO,-
600. these items showing an increase
during the month from ll2,OOO. 900.
600 to 2S7.000. 900, 900 respectively.
The note circulation of the bank.
when compared with the figures for
April 23. 1922, shows an imitation
for the two months of l5l,0OO,OOO,
900 crowns.
New York exchange stood at 49,
o25 crowns for a dollar in Vienna
on June 80. The highest point for
June was 81, 800 and the lowest IL
2H. During May the crown ranged
from 1880 to $500 for a dollar.
The New York cable rates on
Vienna fuctuated between s.O0Oos3
on June l (the highest rate for the
month";, and s.00O054 on June 80
(the lowest rate for the month";.
Cost of Living Increases.
The Volkswirt cost of living in
dex on the first of July was stated
as 3,672, showing an increase for
the month of June of 35 per cent.
Under pressure the government is
introducing a law providing an
automatic adjustment of the SAL
aries OF government employees on
the basis of the official cost of liy-
ing index of the treasury. Thirty
seven thousand workmen were re-
ported unemployed in Vienna at the
beginning of July.
According to Consul Foster, the
declared exports from Austria to
the United States during the month
OF June were valued at s225.OO
OF which paper amounted to $40. 900
and furs to s26.00o. Other items
included electrical apparatus. mostly
lamps. valued at $4,000, and rub
Der goods at sI1. 900.