New Britain herald., 1922-07-07
AUSTRIA TRIES NEW
 GOVERNMENT. FORM
Soclalst,Pan German Coalition
 Ministry Starts Functionins

Vienna, July With the Christian
 Socialist t-Pangerman coalition minis
 try formed today in succession to the
 schober nonpartisan bureaucratic
 cabinet which fell recently. Austrja
 enters upon another experiment Nh
 government.
 Ministry has succeeded ministry
 since the social democratic majority
 was overthrown in the elections two
 years ago and left no party with a
 working majority in the national as
 sembly. Each has assumed office un-
 der greater difficulties than it's pre- decessor Despite the superficial bet torment in living conditions due to widely bestowed charities and foreign credits sufficient at least for food. and the fact that the constantly depreciat- ing money increases in quantity and still has internal purchasing power this new ministry faces an actual economic and financial situation con- ceded to be worse than has hitherto existed.
 When the Seipl government took office the krone was T. 1900 to one dol lar. It is stated t.Aat the recent Brit ish credit was virtually used up in an effort to stabilize the currency For two months this policy succeeded ip holding the krone around 7.5oo to the dollar, but recently the dam broke and 1t fell at the rate of 1000 kronen day.
 Prices of necessities have risen to world parity and above, and the new municipal socialist rental tax, while yielding the landlord nothing. has in- creased rents enormously. This tax goes to the city for a building and re- pair fund for the amelioration of housing conditions.
 The consequence h1s been the nat ural one of demands for higher pay . by all classes, from government enl- ployes to unskilled labor The recent Schober government granted the enor- mously increased demands of the civil servants and met them, together with other obligations. by means of the money printing presses until the cur yancy circulation has reached the as- founding total of over 42o, 900, 900, 900.
 Industrial employers however, have offered resistance and in instances af- fecting some 200, 900 employees, they have denounced existing wage agree ments. The issue has become sharp one. So far the labor unions have shown a moderate and conciliatory | 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 far lower than in Austria, even on gold basis. The instability of the krone, its wide and sudden fuctua- tions, also make it impossible, they say, to deal in future contracts. Ex- port is practically at a standstill and there is widely unemployment.
 This is the situation which con- fronts the bourgeois ministry of Mon- sisnor SeipI. by far the most reac- tionary in its make up that the re- public has had. The new chancellor is q cleric and considered one of the cleverest politicians in the country. {
 The Christian Socialist -Pangerman l combination throws the socialists into a hopeless minority in the national $ assembly and it is very freely pre- dicted that the new conservative {
 
 the statutes many of the laws placed $ there by the socialists when they were in cont1ol. The socialists still have one weapon, however, in the fact that financial legislation requires two thirds vote of the assembly, which . the coalition cannot muster.
 The Pangermans have made it dis tinctly understood that the working agreement with the Christian Social sts must terminate with the generally believed imminent elections At the same time they have not abandoned the t slogan of fusion with Germany. In l recent speech their president, Dr. e emphasized the state 0 nent that the absence of any clause V n the Austro-American peace treaty V ,tipulating that Austria remain an V state was a great and V oyous asset"