New-York tribune., 1922-07-09
Seipl Cabinet
To Try to Put
Austria ON Feet
Gigantic Rehabilitation Task
Confronis Coalition Min
istry Succeeding Nonpar-
iisan Bureaucratic Rule
Peril in Exchange Rate
Workers Say They Cannot
Exist OH Wages: Merchants
Cannot Meet Competition

VIENNA. June IS (By MaiD.-With
the Christian Soeiallst-Pangcrman Goa
lition ministry formed to-day in sue
eession 20 the Sehoben non partisan
bureaucratic cabinet which fell recent
ly. Austria enters upon another expert
ment in government.
Ministry has succeeded ministry
since the Social Democratic majority
was ovcrthrown In the elections two
years ago and left no party with a
working majority in the National As
sembly. Zach has assumed Office under
greater difficulties than its predeces-
sor. Despite tho superficial better
ment in living conditions due 20 wide
ly bestowed charities and foreign
credits, sufficient nt least for food, and
the fact that the constantly depre-
cating money increases In quantity
and still has an internal purchasing
power. this new ministry faces an ae-
tual economic and financial situation
conceded 10 bo worse than has hitherto
existed.
Krone's Rapid Slump
when the Seipl government took Of
fee the krone was II 800 10 one dol
lar. II Is stated that the recent Brit
ish credit was virtually used up In an
effort 10 stabilize the currency. For
two months this policy succeeded IN
holding the krone around 1900 10 the
dollar, but recently the dam broke
and 1t fell at the rate Of 1000 kronen
a day.
Prices OF necessities have risen 10
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 building 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 employees
TO unskiled labor. The recent Schober
government granted enormously in
creased demands OF the civil servants
and met them. together with other OBJ
legations. by means Of the money print
ing presses, until the currency circula-,
tion has reached the astounding total
OF more than 420000,000,00o
Industrial employers, however, have
offered resistance, and In instances AZ
fecting some 10000 employees they
have denounced existing wage agree
ments. The issue mas become sharp
one. SO far the labor unions have
shown a moderate and eoncillatory
spirit and have avoided an open break.
Employers in Protest
Employers claim they can no longer
T.. 10 In
with Germany, where wages and living
arc far lower than in Austria, even on
a gold basis. Tho instability OF the
krone. its wide and sudden fluctuations,
also make il impossible, they say, 10
deal in future contracts. Export is
virtually at a standstlll and there IS
wide unemployment.
This is the situation which confronts
tho bourgeois ministry o. Monsignor
Seipl. by far the most reactionary IN
lis makeup that the republic has had.
The new Chancellor is a cleric and con
sidered one OF the clcvcrest politicians
in the country.
The Christian Socialist-Pangcrman
combination throws the Socialists into
n hopeless minority in the National
Assembly, and II is very freely pre-
dictcd fnat the new cpHhft ~. ~ IN
ton will Undertake 10 wipe from the
statutes many Of the laws placed there
bv the Socialists when they were IN
control. The Socialists still have one
weapon. however. in the fact that nnan-
cial legislation requires n two-ihirGs
vote Of the Assembly, which the coa"'
tion cannot muster.
The Pangcrmans have made Il dis
tinctly understood that the working
agreement with the Christian Social
lists must terminal, with the generally
believed imminent elections. A. the
same time they have not abandoned
the slogan Of fusion with Germany. In
a recent speech their president, DR..
Dinghocffer, emphasized the statement
that the absence Of any clause in the
Austro American peace treaty stipulat-
ing that Austria remain an Independent
state was great and joyous asset