The New York herald., 1922-08-13

Copvff9Nt, iy-@, ~ LIE NEW lohk hEaALD.
VIENNA, Aug. l.
w TITH an area OF $4,000 square
\A/ kilometers and a population
" Of s,5oOO0O inhabitants the
Austrian republic is about one-eighth
OF the former economic territory Of the
Austro Hungarian monarchy.
The dissolution of this monarchy
was followed by the complete break
down OF the old established economic
balance, and most of the misery after
the war must be ascribed to this fact.
Since 1918. the year Of the collapse of
Austria Hungary, all efforts OF the
new State were concentrated upon
finding a remedy
Whereas in the beginning the ma
jority of the population was convinced
that an Independent Austria was an
impossible proposition. for political as
well as fiscal and economic reasons,
and the union with Germany an abso-
lutte necessity. the number OF persons
believing that Austria can and will
exist is now quickly increasing and
the fusion idea Is gradually losing
force
Yet the fight for reasonable re-
organization of the resources of the
new State is desperate, and nobody
can tell yet with certainty whether it
will ultimately be crowned by success.
The real situation is best described
by the present low value of the cur
rency which Is at the actual moment
about 10000 kronen to the dollar,
whereas the pre-war parity used to be
less than five kronen. The actual
budget deficit is estimated at some
thing near 100000. 100000 Ironen. the
almost entirely uncovered paper money
circulation has passed the sumeof 400,-
600, 200, 900. @fs
When the Bourse was suddenly
caught by a bad panic, which threat
ened TO wipe the krone out OF exist
ence, the Government In collaboration
with the banks decided upon The
foundation OF new issuing bank with
a capital of 1000o0.30o Swiss francs,
bbf1VVsVVpF W NC SuDnGTlDSo at OIfCe.
This bank will issue only a limited
amount of bank notes with the inter-
nationally prescribed gold foundation
and take over the circulating stock OF
old bank notes. .
No artificial devaluat.on OF the old
krone by stamping or other processes
is planned. the method TO be followed
being a gradual Increase OF value By
systematic cutting down of the infta-
ton. From the moment when the bill
concerning this new institution be-
comes law no new bank notes will be
printed.
The new bank scheme has helped
to calm the excitement and give the
population new hope for better times
but the first period of the reconstruc-
ton work will be very hard and de-
mand great sacrifices from all classes.
The biggest city Of. Austria is
Vienna. with approximately 100000
souls: the nearest in size is Graz. with
$4,000 souls, whereas the other towns
are all below the 100 900.
Austria is mountainous country
whose soil does not nearly yield sui.
fcient food. At present more than sc
per cent. OF the food has to be inn
ported. BY far the greater part of the
land is split up in small or medium
sized holdings: only 6 per cent. consist
Of farms of more than 100 hectares
each. SO per cent. consist OF forests
10.4 per cent. are unproductive. The
Eastern Alps, crossing Austria from
west to east. make the country very
similar TO Switzerland, and many tour
lists think that it is equal to the latter
in the beauty of its mountain
sceneries.
Forty per cent of the population are
occupied with agriculture and forestry
35 per cent. with industry and handi-
craft, IL with trade and commerce. II
Austria is to exist ct all it will have
to develop into an Industrial exporting
State and first rate commercial transit
center.
In this endeavor il is helped by It's
huge forests, giving room for con-
siderable wood industry. and by the
almost unlimited natural water power
300, 900 horsepower of which are all
ready exploited for electric energy
whereas about 2,250O0o are still await
ing exploitation.
Although the construction Of hydro
electric plants is slowly progressing
.ack of sound capital is a constant
obstacle to these efforts. Yet ii Is
hoped that some of tho main railway
lines will be electrified by the end oi
1925 With the whole latent electric
energy in FUN use Austria would be
almost entirely independent OF foreign
fuel supplies, which are the chief rca-
son for the passive trade balance. II
everything goes well this aim may be
reached ii about fifteen years.
Another asset Is the economic power
of Vienna as a trade, traffic and art
center Vienna comes next TO Paris
as q creative fashion place and has
already developed into recognized
fashion exporting city for the whole
WORT The exports 10 America OF
povsAfcu arr nbfarfa and arffrlae