The Birmingham age-herald., 1922-07-02
NEW EXPERIMENT ACHIEVEMENTS IS
 NOW BEING TRIED
Austria Enters Upon New Era With Pangerman at Head of Coalition of
 Ministry
By Associated Press

Vienna, July With the Christian socialist-Pan- German coalition minis try formed today in succession to the Sohober nonpartisan bureaucratic cabinet, which fell recently, Austria q enters upon another experiment in government.
 Ministry has succeeded ministry since the social democratic majority was overthrown in the elections two years ago and left no party with working majority in the national as- ; sembly. Each has assumed office under greater difficulties than its predecessor. Despite the super1lclat betterment in living conditions, due to widely bestowed charities and Tor eign credits sufficient at least for food, and the fact that the constantly depreciating money increases in quan- tity and gtill has Internal purchasing power this new ministry faces an ac- tual economic and financial situation conceded to be worse than has hither- 10 existed.
 When the Seipl governm ent took of- flee the krone was 300 to one dollar It is stated that the recent British .-oredit was virtually used up in an ef- fort to stabilize the currency. For two months this policy succeeded in holding the krone around f.500 to the dollar, but recently the dam broke and 1t fell at the rate of 1000 kronon day.
 Prices Rise
 Prices of necessities have risen to : world parity and above and the new municipal socialist rental tax, while loN NdI h. creased rents enormously. This tax goes to the city for building and re- pair fund for the alnelioration of housing conditions.
 The consequence n been the natu- ;. ral one of demand glser pay by all classes. from goN .nment employ es to unskilled labnf. The recent Schober governmeu granted the : enormously increaseG demands of the civil servants and met them, together with other obligations, b@ means of the money printing presses, untih the currency circulation has reached the astounding total of over 420,000,00s,- 900.
 -aa Industrial employers, however, have offered resistance and in instances af- fecting some 100000 employees. they having denounced existing wage agreements. The issue has become sharp one. So far the labor unions have shown a moderate and concilia- tory spirit and have avoided an open break.
 Living Lower
 Employers claim they can no longer manufacture for export in competi- tion with Germany. where wages and living are far lower than In Austria, even on a gold basis The instabil- ity of the krone. it's wide and sudden Fluctuations, also make it impossible, they say, to deal in future contracts. Export is practically at a standstill and there is wide unemployment.
 This is the situation which con fronts the bourgeois ministry of Mon signor Seipl, by far the most reaction ary in it's makeup that the' republic has had. The new chancellor is a cleric and considered one of the clev- crest politicians in the country.
 The Christian socialist -Pangerman combination throws the socialists Into hopeless minority In the na- tional assembly and it 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 fact that 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 working agreement with the Christian social ists must terminate with the gener- ally believed imminent elections. At the same time they have not aban- doned the slogan of fusion with Ger many. In recent speech their president. Dr. Dinghoeffer, empha- sized the statement that the absence of any clause in the Austro- Ameri peace treaty stipulating that Austria remain an independent state was great and Joyous asset"