Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-05-18
AUSTRIA is FACING
NECESSITY OF LOAN
Advance to Faltering Bank
Will Make Application to
League Imperative.
BY JOHN F. SINCLAIR.


On the eve of the League of Nations
meeting in Geneva today, the Creditan-
stalt Bank of Vienna, the largest bank
in Austria, was saved on the brink OF
collapse by a $20,000,000 advance from
the Austrian government.
Austria must now apply to the League
for permission to float a foreign loan,
since her financial credits are built
on an international loan foundation
supplied by that body Among League
members, France is the only one in a
position to grant such lean, and Paris
is petulant over both the Austro- Ger
man customs union and the recent
tariff and credit coup of Austria, Italy
and Hungary.
It is Just possible that M. BRAND will
force Chancellor Schober of Austria to
back down to some extent on both
schemes before opening the way for
French rescue loan. Furthermore,
France holds the deciding voting power
of the International Loan Commission,
with which Vienna will dicker.
Meanwhile, there is wonderment as
to why the Rothschilds, who are the
controlling interests in the Creditan-
stalt have not moved more swiftly and
decisively in writing of inflated hold
ings, and taking heavy part OF the
$40 900 900 loan.
The foreign obligations of this bank
total in excess of Si00,000000. 1t has
been one of Europe's financial bulwarks::
It is thought Austria may seek aid
through the bank for international
settlements or may maneuver W1thm
the League to thwart French dictation.
At least one thing comes clearly in
the midst of this startling confusion.
Whether political motives exist or not,
there can no longer be any doubt that
the Austro-German union was primarily
forced by bitter economic necessity.
J. F. Darling, director and former
president of the Midland Bank, Lon
don. looks upon international economic
conferences with skepticism. More
specifically, he believes nothing Will re-
suit from a world silver parley.
when did an international confer
ence get anywhere? We will be ruined
if we await a solution Of depression by
such conference" are the words OF
this British financial leader, who Is
now visiting in Ottawa, Canada.
Mr. Darling believes the silver Ques-
ton can be solved by Great Britain her
self through interempire action, which
he contends would restore the purchaS-
ing power of the Orient, a principal
British market. He feels that the
forced to cooperate in this move.
When one considers the recent In
ternational Chamber of Commerce meet
ing in washington 1t looks as though 1t
had labored TO bring forth mouse,
and a pretty small mouse, at that. such
general conventions frequently seem to
mire in their own talk. But there have
been examples Of success when a single
issue was dealt with. Thomas L. Chad
bcurneS success at the sugar Stabiliza-
ton parley is a striking case in point
So far as silver is concerned, however,
it is undeniable that Great Britain is
the prime factor and should be prime
mover.
In the midst of the hue and cry over
the silver market tantrums the Ma
tional Metal Exchange Of New York Is
initiating trading in silver futures. IL
will be the only one of its kind In the
world when it goes into operation about
June Is, with the first delivery in
August. !.
brand or marking will be deliverable.
There Is to be an official list Of ap-
proved brands and markings on file in
the exchange" according to the rules
and bylaws adopted by the exchange
board of governors.
at 999 with price fluctuations Of 1-100
of cent per ounce. A movement of
one point would alter contract $3.50,
while a 1-cent shift would come to
$3.50 on a contract.
Great interest has been indicated in
the silver futures market by persons
doing business in the Far East and by
those dealing in foreign exchange. 1t
is expected that the market will be
utilized extensively by banks and others
finding occasion for hedging silver COM
mitments," is the reason advanced by
the board for arranging this venture.
Immediately after the Spanish revo-
luton it was announced that President
Zamora planned to examine the Inter-
national Telephone g. Telegraph CO..
phone contract with the old regime.
Now. at a meeting Of the Spanish
cabinet on May IA, it has been decided
officially to consider the terms of this
contract and the manner in which 1t
was made.
The new regime is being bounded by
the people for its general inaction and
it viii be a pity If SPANS telephone
system is sacrificed on the altar Of
politics.
President Zamora and his aides as yet
failed to carry through their program
OF splitting up the immense landed es-
tates of the nobility among the peas
antry and decisively effecting the sepa-
ration CT church and state.
Public resentment is smol6ering and
daily grows more dangerous. II the
Republican leaders now change the
telephone system as sop to the mob
1t viii seriously cripple the country's
communications.
What happens TO old newspapers?
Mostly, they are sent abroad and form q
bulky item in our annual export fig-
ures-oYer III 900 900 pounds in 1890
Their export value is placed al
$l.335,ll8 for that amount
You may wonder what happens to
them when they are thus shipped TO
foreign ports and TO what ports they go.
The majority Of them go to the Far
East. But they are not sought in
China, Dutch East Indies and British
India for literary or educational pur-
poses. Their fate is much less glorious
than that! They are used for wrap
ping all sorts of merchandise. In tie
north Of China they enjoy the doubtful
honor Of being used for wall paper
common inquiry of people visiting
newspaper plants is whether old papers
are treated by some special process and
employed for newsprint again. They are
not. The natural pulp fiber would be
destroyed by any such process and the
paper would lose in tensile strength
II it is processed here instead Of being
2 exported, it is converted into other
forms, such as cardboard, blotting
paper, wrappers, etc. Strange are TIE
uses Of industries by-products!
Copyright. 1881. by North American News