page_title: First Austrian Republic
section_title: Economy
hierarchical_section_title: First Austrian Republic / Economy
caption_attribution_description: English: 25 Schilling from austria, year: 1926, head: eagle of the federal republic austria, designer: Arnold Hartig, material: gold 900/1000. Deutsch: 25 Schilling aus Österreich, Jahr: 1926, Kopf: Bundesadler der Republik Österreich, Designer: Arnold Hartig, Material: Gold 900/1000.
context_page_description: The First Austrian Republic was created after the signing of the Treaty of Saint-Germain-en-Laye on 10 September 1919—the settlement after the end of World War I which ended the Habsburg rump state of Republic of German-Austria—and ended with the establishment of the Austrofascist Federal State of Austria based upon a dictatorship of Engelbert Dollfuss and the Fatherland's Front in 1934. The Republic's constitution was enacted on 1 October 1920 and amended on 7 December 1929. The republican period was increasingly marked by violent strife between those with left-wing and right-wing views, leading to the July Revolt of 1927 and the Austrian Civil War of 1934.
context_section_description: However the new state was difficult to control, as much of the former empire's important economic regions had been taken away with the foundation of new nation-states. The matter was further complicated by the fact that a number of these new nation-states were still dependent on Vienna's banks, but business was hampered by the newly erected borders and tariffs.
  The landlocked Austria was barely able to support itself with food and lacked developed industrial basis. In addition, Czechoslovakia, Hungary, Yugoslavia and Italy had imposed trade blockade and refused to sell food and coal to Austria, which eventually was saved by aid and support from the Western Allies. By 1922 one USA dollar was worth 19,000 kronen and half the population was unemployed.
  In December 1921 the Treaty of Lana between Austria and Czechoslovakia was signed in which Austria recognized the new state borders and relinquished claims to represent ethnic Germans in return Czechoslovakia provided a loan of 500 million kronen to Austria.
  To deal with post-war inflation Chancellor Ignaz Seipel in 1922 asked for foreign loans and introduced austerity policies. In October 1922 Britain, France, Italy and Czechoslovakia provided a loan of 650 million gold kronen after Seipel promised not to attempt Anschluss with Germany for 20 years and allowed the League of Nations to control Austria's economy. During the next two years state budget was stabilized and international supervision over finances ended in March 1926. Austria's central bank Oesterreichische Nationalbank was re-established in 1923, sales tax was introduced in 1923, and the Austrian schilling replaced krone in December 1924.
  The Great Depression hit Austria hard and in May 1931 the largest bank in Austria, Creditanstalt Bank collapsed. To improve its economy Austria wanted to conclude a customs union with Germany, but in 1931 this was denied by France and countries of the Little Entente.
caption: 25 schilling golden coin
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