jr t lt « O0HheO^u=.] ■' C . 568. M. 278. I93*. n. a. b J [F.III7.]
Geneva, August 15th, 1932.
LEAGUE OF NATIONS
FINANCIAL POSITION OF AUSTRIA IN THE SECOND QUARTER OF 1932
THIRD QUARTERLY REPORT
by M. Rost van Tonningen, the Representative in Austria of the Financial Committee
CONTENTS. Page 1. Introduction ...... 2
2. Federal B udget: (а) Federal Budget for 1 9 3 1 ...... 3 (б) Budget of the Federal Railways in 1 9 3 1 ...... 3 (c) Federal Budget for 1932 ...... 3 (d) Budget of the Federal Railways in 1 9 3 2 ...... 5 (e) Cash P o s itio n ...... 7 (/) Creditanstalt...... 8 (g) Assigned Revenues...... 8 3. Local Fin a n c e ...... 9
4. Central Bank Position: (a) Foreign Exchange and Gold Reserves ...... 9 (b) Suspension of Transfer of Foreign Exchange for Foreign Debt Payments . 10 (c) Standstill Agreements...... 11 (d) Credit Situation...... 11 (e) National Bank and Creditanstalt...... 13 (/) Clearing A g reem en ts...... 14
5. Economic Situation: (a) G en era l...... 17 (b) Foreign T r a d e ...... 17 (c) Production ...... 18 (d) Em ploym ent...... 18 (e) P rices...... 18 (/) Stock E x c h a n g e ...... 18 (g) Viennese Banking P o s it io n ...... 18 (h) Commercial P o lic y ...... 19
A p p e n d i c e s .
I. Summary of Budget A ccounts ...... 23 II. Analysis of Annual and Quarterly Budget Accounts . 24 III. Revised Monthly Estimates, April-July 1932 . . . 28 IV. Revenue pledged for the 1923-1943 Guaranteed Loan 30
S. d. N. 2.505 (A.) 8/32. Imp. Kundig Series of League of Nations Publications II. ECONOMIC AND FINANCIAL 1932. II. A. 19. Page
V. Treasury Position, 1928-1931...... 30 VI. Austrian Federal Railways: (a) Monthly Traffic Receipts, January-June 19 3 2 ...... 31 (b) Provisional Results for 1931 and Estimates for 1932 32
VII. Situation of the Austrian Public D ebt...... 33 VIII. Closed Accounts and Debt Situation of the Lander and Municipalities...... 34 IX. Austrian National B a n k ...... 35 X. Balance-Sheets of the Principal Viennese Banks ...... 36 XI. Foreign T r a d e ...... 37 X II. Economic In d ices...... 38 XIII. Decree of the Austrian Government of July n th , 1932, on Suspension of Transfer of Foreign Debt P a y m e n ts ...... 39
I. INTRODUCTION.
Attention was already drawn in the Introduction to the previous report to the measures of control and restriction which several Central European States had been induced to take by the spreading paralysis of heme and foreign capital markets. The last report also showed how Austria was endeavouring to avoid following in the footsteps of many of her neighbours in spite of the shrinkage of the most active items of her balance of payments, which made the meeting in full of all her foreign obligations possible only at the cost of seriously depleting the reserves of the National Bank. At the end of June, however, the National Bank refused to allot foreign exchange for debt payments, thus establishing a de facto suspension of transfer which was legally recognised by a Decree of July nth, the text of which is given in Appendix XIII. This suspension is the out standing financial event in Austria during the last quarter. Though from the purely Austrian point of view there are arguments in its favour, its international effects are to be deprecated. It constitutes a further step towards the complete disorganisation of the international payments system, though its effects are not yet fully felt owing to the extreme rigidity of the complex regulations which, in attempting to maintain the position in Central Europe, are slowly strangling its trade. The Government, in a last attempt, addressed on May 9th last a letter to the Secretary- General of the League of Nations, containing a request for advice from the Financial Committee and for such international co-operation as would make unnecessary just such a suspension of transfer and similar restrictive measures. The Council of the League referred this document to the Mixed Committee of Treasury representatives and members of the Financial Committee, which presented its recommendations in the form of a Protocol1 adopted by the Council on July 15th. The Austrian problem, however, in the meantime became acute, and the Government introduced the suspension of transfer mentioned above. During the discussions in the Mixed Committee, the plan of assistance to Austria broadened gradually, as it was thought that an attempt should be made to elaborate a scheme which not only would achieve the original result in view, but which, when completed by further international action in Central Europe, might permit the country to find definitely its way out of the general difficulties with which it was confronted. The fact that the Final Act of the Lausanne Conference provides for such further action emphasises the character of the Austrian scheme as being a first important step in the reconstruction of Central Europe. Such general action is indeed highly desirable if it is realised to what extent external trade is hampered by the gradual development of a complicated system of private and public clearing arrangements, import prohibitions, and foreign exchange regulations; all these having been super imposed on existing trade barriers. It is a huge task to prepare for the return to the free flow of trade and credit. During the preparation for further international assistance to Central Europe, the contemplated loan should permit Austria to face the future with less concern. The yield of the loan should indeed ease the situation by permitting the reimbursement of the domestic floating debt, which is frozen and which weighs heavily on the whole market. A glance at the public finance figures would appear to indicate how difficult the situation might become in the autumn if the Treasury is not provided with a working fund by the reimbursement of the existing floating debt. To this effect ratifications of the Austrian Protocol by the various Parliaments concerned should be obtained in due time, so as to proceed to the flotation of the loan as early as possible.
1 Document C.539.M.270.1932.II. — 3 —
2. FEDERAL BUDGET.
(a) Federal Budget for 1931.
The closed accounts for the year 1931, published by the Audit Court on June 30th, reveal a deficit for the year of 322.14 million Schillings. The difference between this result and th at yielded by the provisional results published in March is shown in the following table:
Provisional Difference Closed Results Accounts (In millions of Schillings) R e c e ip ts...... 2,006.70 + 1.82 2,008.52 Expenditure ...... 2,183.25 + 49-03 2,232.28
B a la n c e ...... — 176.55 + 47-21 — 223.76 Investments ...... 98.54 — 0.16 98.38
Total Budget Deficit . — 275.09 + 47-05 — 322.14 Current Account Balance . . + 217.57 — 211.95 + 5-62
Total Deficit .... — 57-52 + 259-— — 316.52 The increase of 47.05 million Schillings in the deficit is to be explained mainly by the fact that a part of the supplementary items introduced into the budget during the year were still booked on the current account when the provisional results were established and were only later carried to the budget account. The following were the principal items: In millions of Schillings Purchase of Creditanstalt s h a r e s ...... 17.62 Medium-term advances (Elozierungen)...... 5.52 Sundry tobacco-monopoly expenses...... 5.02 Depreciation of holdings of sterling, etc...... 13.25 Sundry d iffe re n c e s...... 5.64
T o t a l ...... 47-°5
Administrative Claims and Liabilities.
Administrative Claims Administrative Liabilities 1930 1931 1930 1931 (In millions of Schillings) Administration proper . . . 1,459-83 1,566.56 167.40 211.52 Monopolies...... 103.90 i29.II 379-31 4 2 6 .1 9
T o t a l ...... i,563-73 1,695.67 546.71 637-7I The increase in claims is to be attributed mainly to increases in claims not yet due (+ 130 million Schillings), and the increase in liabilities to the payment of arrears of the Administration proper (-f- 8.6 million Schillings), book and investment debts of the Monopolies and Undertakings (+ 46.9 million Schillings) and the refund of liabilities for excess payments (+ 32.7 million Schillings).
(b) B u d g e t o f t h e F e d e r a l R a i l w a y s i n 1931.
The closed accounts for the Federal Railways for 1931 were published in June last. The final figures given in Appendix VI (a) show little divergence from the provisional results. Receipts were slightly smaller and the operating deficit was accordingly increased by 5.8 to 42.9 million Schillings. The charge for debt service was slightly lower, and readjustments of various other items brought the final deficit up to 83.1 million Schillings, as against the previously published figure of 80 million Schillings.
(c) Federal Budget for 1932.
The figures contained in Appendices I to III show clearly that the first half of 1932 has not been affected as adversely by the rapid deterioration of the economic situation as had been feared. Receipts, 939.7 million Schillings, though in this period of the year usually less than half the full budget estimates—1.001 million Schillings—are only some 16 millions below revenue for the corresponding period of last year. Whether the maintenance of this level, in many quarters considered too high, is due to the relative change in the purchasing power of the Schilling 15 a controversial question. — 4 —
It would be inopportune, however, to make the experience of the first half-year the basis for undue optimism with regard to the future trend of receipts. The month of June, though all the results are not yet known, would appear to show a rather sharp fall in revenue (see “ Cash Position ”, Chapter 2 (e)). Whether this is an evolution towards a lower level of receipts, and whether the June receipts are the first signs of still worse developments in the future that the increasing contraction of trade in Central Europe in recent months is likely to bring, cannot be determined at this moment. The developments in the month of July would appear to justify a slightly more optimistic view. Continued heavy unemployment (see Appendix XII) is a serious drain on the budget, and expenditure on this account for the first six months was 230 million Schillings as against an estimate of 208 million Schillings. Continuously diminishing traffic receipts threaten the railways with a deficit which the latest estimates of the management put at not less than 97 million Schillings for the present year. This sum should under no account be raised by credit transactions. The Supplementary Budget, which was put before Parliament at the beginning of July and which is still under discussion, does not contain appropriations for covering this deficit, but it contains an item of 40 million Schillings for the payment of a part of last year’s deficit of the Railways. This deficit amounted to 83 million Schillings. The Supplementary Federal Budget provides for the following developments :
In millions of Schillings (a) Increased expenditure. . . . — 145.46 (Social Insurance: 71.59; Covering of Railway Deficit of 1931: 40.—) (b) Diminished receipts...... — 123.12 (Taxes: 83.42; Post Office: 22.—■). (c) Econom ies...... + 181.111 (Release of sums previously set aside for repayment of Floating Debt: 100.—. The rest is dis tributed through all the Minis tries.) (d) Increased receipts...... + 85.17 (Inter alia : Customs duties on tea, coffee, spices, 12.50; Post office increased rates : 7.— ; increased Turnover Tax: 54.—)
- 2.30 Previously estimated surplus . . . + 2.35
Newly estimated surplus .... + 0.05
The budget originally voted will be affected by the supplementary modifications as follows:
Development Expenditure Receipts Surplus Deficit on B alance (In millions of Schillings) Deteriorations .... (a) + 145.46 (6) — 123.12 + 268.58 Improvement .... (c) — 181.II [d) + 85.17 + 266.28
Balance. . . . — 35-65 — 37-95 — 2.30
Original Budget Totals I.999-71 2,002.06 2-35 — Supplementary Budget Totals .... 1,964.06 1,964.11 0.05
The methods applied for the restoration of budgetary equilibrium have been very severely criticised in the country. The increase in the Turnover Tax was in the centre of these attacks. The difficulties with which the Ministry of Finance is confronted in its efforts to secure equilibrium are increased by the fact that a very considerable number of past liabilities have to be liquidated out of current receipts. These liabilities are shown in the following table :
R a ilw a y s : In millions of Schillings Interest on deficit from 1 9 3 0 ...... 2.55 Deficit in 1 9 3 1 ...... 83.07 Investments and renewals in the p a s t ...... 54.—
Total R ailw ays...... 139.62
Posts and Telegraphs in v e s tm e n ts ...... 6.—- Administrative debts from 1 9 3 1 ...... 20.—
Total of lia b ilitie s ...... 165.62 — 5 —
As mentioned above, 40 out of the 83.07 million Schillings of the Railway deficit in 1931 is included in the Supplementary Budget, the balance being deferred to the 1933 Budget. The original Budget for 1932 already contained 34.2 millions for the reimbursement of the deficit in 1930. The total amount appropriated to Railway deficit in 1932 is therefore 40 + 34.2 + 2.5 = 76.7 million Schillings—i.e., approximately 20 millions less than the estimated deficit of 97 million Schillings of the Railways for the present year (see under (d) below). Great progress has thus been made away from the financial policy of the past, which simply deferred payments without making any provisions at all for settlement, to the present policy of liquidating such liabilities immediately; it is still desirable to avoid at all costs the accruing of further arrears, so as to maintain at least the status quo. It may, therefore, be necessary to make further provisions for the above-mentioned balance of 20 million Schillings. The amount of 54 million Schillings for investments of the Railways represent liabilities incurred in the past. They have nearly all been paid and have consequently increased the floating debt of the Railways. Under the terms of the Supplementary Budget law, this amount should be covered from the yield of the loan foreseen in the Lausanne Protocol. Finally, it should be observed that the amount of 100 million Schillings, provided in the original budget for the repayment of short-term obligations, will be applied to current needs in agreement with the provisions of the Protocol (Annex II, Article 1, paragraph 3).
(d) B u d g e t o f t h e F e d e r a l R a i l w a y s i n 1932.
(See Appendices VI (a) and VI (6).)
Railway traffic, admittedly one of the most sensitive indices of the economic situation, has shown a catastrophic fall since the beginning of the year. While the correctness of the estimates of the management for the receipts in the present year was still a controversial matter in January, the latest estimates are 114 million Schillings lower, if the Traffic Tax is included in the calculation.
Original estimates Revised estimates (January 1932) (In millions of Schillings) Traffic receipts, including Traffic T a x ...... 558 444
Instead of a slight profit, the Railways will show on the basis of the revised estimates a loss of 96.9 million Schillings in the present year. It should be observed that operating expenses are about 64 million Schillings below last year, but they do not include for renewals an annual amount which is somewhat below the minimum renewals which M. Herold has recommended in his report (see below). The low revenue figures have compelled the management to reduce all the most urgent items of expenditure and to effect a reduction of personnel charges. Its policy is indeed compulsorily directed towards the protection of its cash position, as both the Railways and the Federal Treasury are unable to meet further deficits by short-term borrowing. Evidently such a policy, though perhaps inevitable for the present, must be short-lived, and the railway problem will soon have to be examined from the point of view of its long-term prospects, so as to avoid the repetition of the mistakes made in the past—i.e., putting off necessary expenditure and leaving it to be taken care of in the future.
Report of the Railway Expert, M. Her old, on the Austrian Federal Railways.
As mentioned in the first quarterly report (page 2), M. Herold, the Swiss railway expert, who had been entrusted by the Austrian Government with an enquiry into the situation of the Federal Railways, assumed his duties definitely in January last. He submitted his report to the Austrian Chancellor in May last. In this report, which is now accessible to the public, no solution of the problem of financing future investments (should these prove themselves indispensable) is attempted ; nor is an investment programme laid down. Consequently, the Mixed Committee has provided in the new Protocol for the appointment of a railway expert who will examine these questions. The voluminous report contains a complete and very thorough examination of the situation of the Railways and declares the bad state of this undertaking to be a chronic defect. It criticises the accounts of previous years, which should all have shown a heavy loss. The lack of adequate renewals in previous years has indeed shifted the burden from past to future years, as renewals have either been delayed or have been financed in part through loans, on which interest and amortisation must now be paid. M. Herold was obliged to base his enquiry on the closed accounts for 1930, as the figures for 1931 had not been definitely established at the time. Receipts during 1931 and the present year are clearly well below the 1930 figures, and M. Herold’s enquiry leads to the conclusion that it is impossible to establish equilibrium at the present (1932) reduced level of receipts. His recommendations are made on the basis of a normal budget with traffic receipts 1 of 520 million Schillings as compared with the latest estimates for 1932 of 444 million Schillings
1 These must be distinguished from the operating receipts given in Appendix VI ( b ) . This figure includes Traffic Tax. — 6 —
(including traffic receipts), the yearly average for 1924 to 1931 being 540 million Schillings. Thus the question is raised of the charging of a deficit arising out of reduced receipts to the State Budget. The deficit for 1932 will not be limited to the difference between actual receipts and the normal figure of 520 million Schillings, as it will not be possible to reduce expenditure at once to the normal level established by M. Herold. It is hoped that in 1933 this level may be nearly attained. It is not intended to discuss here the technical recommendations of the report, but only their effect on the financial situation of the Railways themselves, of the State and of the local govern ment bodies. The reforms suggested can be grouped into two distinct categories: (a) The transference of burdens from the Railways to the State and local budgets; (b) Reforms aiming at an effective reduction of expenditure or increase of receipts : A d (a). M. Herold suggests that the following charges should henceforward be borne by the State Budget : (1) Part of the amortisation of the Railway debt. This is the main item. It will be remem bered that the service of those portions of the 1923-1943 and 1930 Loans which have been applied to the Railway investments is charged to this undertaking. Amortisation of the 1923 Loan takes place at a fairly rapid pace, and M. Herold would like to devote a varying proportion of these payments to the setting up of a renewals fund to which the Railways should contribute also. The total annual minimum contribution towards such a fund he places at 60 million Schillings —i.e., 40 million Schillings more than the average expenditure under this head during 1924-1930. If this is done and the track is kept in good condition, M. Herold thinks rapid amortisation of the Railway debt could no longer be justifiably charged to the undertaking and should therefore be mainly borne by the State. The following table shows the present amortisation payments made by the Railways in respect of the 1923-1943 and the 1930 Loans. M. Herold does not specify what sums would have to be paid by the State under his scheme, but his normal budget includes 15 million Schillings for Sinking Fund payments by the Federal Treasury. Sinking Fund Payments by the Railways, 1932-1943, according to Amortisation Plan. (In millions of Schillings) 1923-1943 1930 Total L oan L oan In 1 9 3 2 ...... 11.60 3.13 14.75 Rising in 1937 to ...... 16.98 4.68 21.66 and in 1943 t o ...... 26.85 7.59 34.44 (2) The floating bank debt of the Railways, which amounted on March 31st, 1932, to 137.1 million Schillings, should be repaid by the State so as to relieve the undertaking of interest pay ments which amounted in 1931 to about 8.5 million Schillings. The second quarterly report (pages 6-9) summarised the debt situation of the Railways and described the grounds on which they claimed reimbursement by the State. If the estimated deficit for the current year (96.9 million Schillings) is added to these claims, the State would become liable for about 240 million Schillings. The Supplementary State Budget now before Parliament (see “ Federal Budget for 1932 " above) does in fact provide 54 million Schillings to be utilised for reducing the portion of the floating debt of the Railways incurred for financing investments out of the yield of the future international guaranteed loan. The balance which was contracted to cover current deficits will have to be repaid out of current receipts (40 millions are provided for this purpose in the Supplementary Budget; see above under 2 (c)j. (3) M. Herold also suggests the increase of the contribution of the Posts and Telegraphs to the Railways for services rendered. (4) The reduced tariffs and free passes granted to the State by the Railways should either be seriously reduced or the compensation considerably increased. (5) The relations between certain private railways administered by the Federal Railways and^the latter should be readjusted with a view to relieving the budget of the Federal Railways. (6) M. Herold devotes considerable space to the question of taxation. He points out that the Swiss and German Railways practically enjoy fiscal immunity, while the Austrian Railways have to bear the following charges: In millions of Schillings 1931 1930 Real Property Tax (Lander and Municipalities) . . 1.7 1.4 Tax on wages and salaries ...... 12.2 13.2 Other tax es ...... 0.2 0.2
T o t a l ...... 14.1 14.8 M. Herold is of the opinion that freedom from all such taxation should be granted to the Austrian Federal Railways also. The tax on traffic receipts imposed by law is not levied in practice, as the Railways could scarcely pay it. Its abolition is suggested, as it only complicates the book-keeping. Ad (b). The measures of economy constitute a series of very valuable suggestions which there is unfortunately no room to enumerate in this report, as they range from the method of applying the eight-hour day to the savings in purchasing and utilising of material. — 7 —
The main economies are to be effected by a further, though smaller, reduction of the staff than has taken place in the past and a reduction in the rate of pensions. When all this has been effected, the number of Railway pensioners will be greater than that of the active staff, thus demonstrating the magnitude of the burden that pensions constitute for the country. Evidently, the Railways were unable to support the full costs of the pensioners, who, as will be remembered, represent in their majority the excess staff, which worked in the Railways of the former Austrian Monarchy, over the requirement of the post-war Austrian system. These pensions are carried in part by the State and in part by the Railways. M. Herold thinks that the part carried by the Railways is too high, but he does not make definite proposals for a redistribution of these charges to the detriment of the State, as he has to admit that, if pensions and payments for Debt Service are taken together, the Austrian Railways are in a better position than the Swiss Railways. Expenses in Percentage of the Total Operating Receipts in the Year 1930.
Austria Switzerland (In millions of Schillings) Pensions paid by the Railways...... 14.8 6.3 Debt Service ...... 7.0 26.1
T o t a l ...... 21.8 32.4 As the burden of pensions will increase in the future through the reduction of the staff, the comparison may become less favourable to Austria. M. Herold fears therefore that pensions may become intolerable, unless the present rates, which he considers as unduly high, are reduced. These suggestions were embodied in a law on the reduction of railway pensions which is before Parliament. Only if these measures are adopted and if all the other reforms and discharging of the Railways from actual expenditure (see under (a) above) are effected will the preliminary conditions for M. Herold’s normal budget based on traffic receipts of 520 million Schillings be fulfilled. In order to give an idea of the way such a normal budget would work out, M. Herold has endeavoured to establish a profit-and-loss account rearranged accordingly.
Tentative Profit-and-Loss Account established according to the Principles of the Normal Budget. Debit: Credit: (In millions of Schillings) Debt S e rv ic e ...... 69.9 Operating s u rp lu s ...... 6 5 7 Contribution to Renewal Fund 60.- Contribution of subsidiary con Deficit of subsidiary concerns . 0.1 cerns towards Debt Service . 14.- S u n d rie s...... 0-3 Surplus of subsidiary concerns . 0.2 From Renewal Fund towards renewals on operating account 2 2 - Amortisation of Federal Loans applied to Renewal Fund . . 1 5 - Total ...... 116.9 Uncovered D eficit...... 134
130.3 130.3 It is a cause for very grave concern that a loss of 13.4 million Schillings is finally shown. In order to wipe this out, M. Herold suggests administrative reforms for the pension system and certain increases in rates. These increases have recently been proposed by the management of the Railways to the Governing Board for submission to Parliament.
(e) C a s h P o s i t i o n .
Attention was drawn in the second quarterly report (pages 6-7) to the increasingly tight position of the Treasury. The trend of State and particularly of Railway revenue has further affected this position and would in fact have led to serious complications had not the unabated efforts of the Ministry of Finance succeeded in reducing expenses further. The Railways could, however, not cope with the sudden fall in receipts of almost 20 per cent (see above under 2 (d) and Appendix VI (a)) and were therefore unable to pay over the contribution °f 28. 2 million Schillings to the service of the State debt which became due in the month of June. The Railways also failed to pay certain taxes which were collected by them for the Treasury. Moreover, as State revenue in June was below expectations, the Treasury was unable to meet a,l its payments. The situation was further complicated by the fact that the balance of the pledged revenues could not be liberated by the Trustees of the 1923 Loan so long as the necessary amounts hi foreign exchange required for the monthly instalment for July had not been purchased and transferred to these accounts (see below under 2 (g)). As mentioned elsewhere in this report, the National Bank declared itself unable to do so, for fear of further weakening its reserves (see Chapter 4). In order to secure the payments at the end of the month, the Treasury deviated the ordinary flow of pledged revenues by distributing them directly to the various paying offices instead of paying them in, as ordinarily, into the blocked accounts of the Trustees. Notwithstanding all these measures, it was found impossible to pay out the salaries of the officials in full ; orders were issued to pay 60 per cent on the first of the month and 40 per cent on the 15th. The summer months, in which the Railway receipts reach their peak level, may give a short breathing space, but, unless the situation improves, new difficulties will arise in the autumn. The Ministry of Finance has therefore again proceeded to investigate the cash holdings of certain undertakings, and has succeeded in tracing and making available certain reserves which have permitted a slight relaxation of the strain. It would be rash to make an attempt to estimate future cash requirements, so long as the general situation is as unstable as at present.
(/) C reditanstalt .
It was mentioned in the second quarterly report that Dr. van Hengel, immediately after the assumption of his duties as General Manager of the Creditanstalt, drew up a plan for the recon struction of the Bank. The essential feature of his scheme was the liberation of the Creditanstalt from the greatest part of its liabilities to the Austrian National Bank and from all its liabilities to foreign creditors. The National Bank and the foreign creditors were to accept, in exchange, annuities from the Austrian State amounting together to approximately 36 million Schillings a year. The foreign creditors would further obtain, in exchange for a waiver of their claims on the Creditanstalt, part of the share capital of the reconstructed Bank, so as to receive some compensation for the size of the annuity which they were offered. Notwithstanding the continuous efforts made by the General Manager to secure the acceptance of his, or, of an amended, plan, little progress has so far been made. A delegation of the foreign creditors arrived in Vienna in May last in order to examine on the spot the possibilities of a solution. In spite of the divergent views of the various parties concerned, practical unanimity was secured on the principle that the solution of the problem should be found on the basis of a reconstruction of the Bank on an unquestionably sound basis, so that confidence would be inspired in the population. Unfortunately, no agreement could be reached, as the gap between the proposals of the various parties concerned was still too wide to be bridged. The discussions in Vienna, however, had the result of elucidating many doubtful points, so that quite recently new plans have been worked out on lines which would appear to be acceptable in principle to the contracting parties. This plan amounts to an extension of the original van Hengel scheme, as it provides, in addition to the liberation of the Creditanstalt from the above-mentioned liabilities, for a strong co-operation between the foreign creditors and the management of the Creditanstalt in the protection of the foreign assets of the Bank. The Austrian Government is essentially interested in such a co-opera tion, as through its shareholdings in the Creditanstalt the benefit, which might accrue from a constructive policy on the part of the foreign creditors, will automatically reduce the effective burden of whatever annuity it should agree to pay to the creditors. The urgency of adapting a sound solution was repeatedly stressed during the discussions in the Mixed Committee in Paris, Geneva and Lausanne, and presents an outstanding problem in the work of reconstruction for which the scheme embodied in the new Protocol should lay the general foundations. It is a ground for great satisfaction that the Creditanstalt has been able to avoid any increased demands for discount facilities since the present General Manager entered into office, but this does not justify any delay in arriving at a solution. Mention is made below, in connection with the National Bank, of the method which is foreseen for transferring to the Federal Government the bill liability of the Creditanstalt, a most essential and necessary step in the financial reorganisation of this institution. Of a similar importance is the necessity of reducing the existing salary and pension charges to a level compatible with the earning capacity of the reconstructed Bank. It will be seen, when examining the position of other Viennese banks, that this problem is a general one. A Ninth Creditanstalt Law is also before Parliament, the chief purpose of which is to amend the provisions of the Sixth Law (see first quarterly report, page 8) by allowing the Bank not to publish a balance-sheet until the end of 1932, relieving it of the necessity of publishing one for 193L
(g) A ssig n e d R e v e n u e s . The revenues assigned for the service of the 1923 Loan were paid until June last into the account of the Trustees with the National Bank. It had been the practice to buy out of these funds, in the course of each month, the foreign exchange which had to be transferred to the accounts of the various paying agents of the Loan on the first of the succeeding month, the balance (in Schillings) of the account being transferred, on the authorisation of the Trustees of the IÇ23 Loan, to the blocked account of the Trustees of the 1930 Loan (the Bank for International Settlements). From this balance the purchases for the monthly instalments for the 1930 Loan were made, and on their completion the remaining balance was transferred to the free account of the Federal Treasury with the National Bank. This latter transfer took place generally about the 23rd or 24th of each month, so that the necessary funds could be distributed in due time over the territory of Austria in order to meet the payments, mainly of salaries and pensions, at the end of the month. — g —
During the month of June the Austrian Government has, however, as mentioned above, not paid the full amount of the pledged revenues into the account of the Trustees for the 1923 Loan, a procedure of which the Trustees were informed by the Austrian National Bank. In reply to protests issued by the Trustees, the Austrian Government pointed out that, owing to the difficult cash situation, the Treasury was to its great regret unable to follow the procedure laid down in the General Bond. The Government expressed its hope to be able to find a solution for these difficulties in case of a favourable result of the Loan negotiations. The present situation is as follows : In million of Schillings July June Total Total yield of Customs and tobacco .... 48.1 42.1 90.2 Paid into the blocked account...... 5.5 17.9 23.4
Balance withheld from the blocked account 42.6 24.2 66.8 An early return to the normal procedure applied prior to June is to be urged on many grounds. The longer transfers are delayed, the more difficult will the liquidation of the accumulating arrears be, once payments are again resumed. Furthermore, the Austrian Government is well aware of the international importance of the principle for which League of Nations loans stand and has no desire to diminish its value by impairing the financial reputation of such securities. Consequently it has the intention of resuming normal transfers as soon as circumstances permit, so as not to jeopardise the punctual service of the loan. Funds already in the hands of the Trustees under the General Bond at the end of June allow for meeting payments which fall due in December of the current year.
3. LOCAL FINANCE.
Appendix VIII gives summary figures for receipts and expenditure in 1930 and 1931 of the Lander and the Municipalities of over 5,000 inhabitants. The figures for Vienna for 1931 are not yet available. The expenditure and receipt figures for 1931 still include various accounting entries which have been eliminated from the 1930 data. This makes a direct comparison of the figures misleading, but does not affect the amounts of the deficits. No details are available for the debt situation at the end of 1930, which would permit of a comparison with the figures given for 1931- Little precise information is to be had concerning the development of the budgetary and general financial situation among the local government bodies, but, as far as can be judged from a variety of indices, their situation follows very closely that of the Federal Government. Four out of nine Lander (Nieder-Oesterreich, Kârnten, Salzburg, Steiermark) have found themselves obliged, by the tightness of their cash position, to pay their salaries in two instalments, a procedure which was initiated by the Federal Railways in January, and, as mentioned above, followed by the Federal Government in July. Vienna continues to pay in full at the beginning of each month. Unemployment weighs heavily on the industrial centres, and the Supplementary Budget at present before Parliament provides for a method of distributing the newly increased tax receipts which will relieve those Lander and Municipalities which are in this respect hardest hit. The Bill providing for a joint advisory committee for the purpose of regulating the borrowing activities of local authorities is still before Parliament, as it requires a two-thirds majority and is meeting with very strong resistance from the Opposition parties.
4. CENTRAL BANK POSITION.
(a) F o r e i g n E x c h a n g e a n d G o l d R e s e r v e s .
The following table shows the development of the foreign exchange movements since the introduction of foreign exchange restrictions on October 9th, 1931:
O ctober 10th to January- February M arch April May Ju n e Total D ecem ber 1932 1932 1932 1932 1932 1932 1932 31st, 1931 (Ia millions of Schilling s) Devisen allocated : (a) For commercial pur poses ...... 108.4 3 5 - 2 3-7 20.7 16.3 16.- 12.4 232.5 (b) For Loan Service and other payments of State and Lander 68.5 22.9 21.5 29.9 27.- 20.7 9-4 199.9 Total allocated . . 176.9 57-9 45.2 50.6 43-3 36.7 21.8 432.4 17.8 Devisen received. . 174-9 38.6 27.4 31-9 22.3 19.8 332.7 Balance . . . —2 - —19-3 —17.8 —18.7 —21.- —16.9 —4 - —99-7 4-0.6 Forward transaction —33-9 —18.1 —1.1 — -— + 2 - —50.5 __ Total outgoings . —35-9 —37-4 — 18.9 —18.7 —2 1 - — 14.9 —3-4 —150.2 — IO —
These figures show a considerable reduction since the beginning of the year in the amounts of foreign exchange allocated and received ; allocations for commercial purposes in June were only 34 per cent of the average for the period October ioth-December 31st, 1931, while Devisen received showed a similar decrease of 30 per cent. Attention was already drawn in the second quarterly report (page 11) to the progressive exhaustion of the foreign exchange balances requisitioned by the National Bank. Visible exports are the only permanent source of foreign exchange under the present circum stances and these became increasingly inadequate to satisfy the requirements of the import trade and of the foreign debt service. Consequently, the foreign exchange account showed an average monthly deficitary balance of about 18 million Schillings during the period January-May 1932.
(b) Suspension of Transfer of Foreign Exchange for Foreign Debt Payments.
These foreign exchange losses were slightly less than the foreign debt payments due by the country during the period in question (see quarterly figures, second quarterly report, page 26). The following table compares the estimate made by the National Bank of the monthly foreign debt payments during the first half-year with the actual losses on foreign exchange:
January- January February March April May June June
(In mil ions of Sc hillings)
Foreign D e b t ...... 18.5 18.5 24 .6 21.5 2 0 .- 29-5 132.6 2 Monthly losses on foreign ex change 1 ...... 19-3 17.8 18.7 2 1 - 16.9 4-- 97-7
The month of June being one of heavy maturities, the Government sought for a solution which would put a stop to the progressive depletion of the foreign exchange, while avoiding, if possible, a suspension of transfer, and on May 9th addressed the aforementioned Note to the Secretary-General of the League of Nations asking for the advice of the Financial Committee. The intricacy of the problem delayed the desired prompt solution, and, as a provisional measure, the Austrian Government decided on June 23rd to suspend the transfer of the heavy maturities falling due at the end of that month. The service of the 1923-1943 League Loan and of the 1930 International Loan were not excepted from this provisional transfer suspension, and the Trustees of both loans issued strongly- worded protests against this procedure and against the other irregularities consequent upon it, and which have already been discussed under the head “ Assigned Revenues At the time the provisional suspension of transfer was decided upon, it was hoped that the flotation of a foreign loan would permit of an early resumption of normal payments. When it became clear that no foreign money could be obtained before the autumn, it was thought necessary to devise means for bridging the intermediate period. A decree (see Appendix XIII) was therefore issued with the approval of the Standing Committee of Parliament on July 15th, while this report was being written, compelling debtors to deposit at the National Bank the countervalue in Schillings of their foreign currency liabilities, for which no provision had been made since the practical suspension of transfer in June. No penalty is provided for non-fulfilment, and an unsatisfied creditor can only claim the deposit of the sum in question at the National Bank. Schilling equivalents of sums due in foreign currency are always to be calculated at the rate officially determined by the Austrian National Bank. The delay in resuming normal transfer operations consequent upon protracted Protocol negotiations raises another problem. During the intermediate period arrears will accumulate and will have reached a considerable sum by the time the loan is forthcoming, as the following figures show: In millions of Schillings E stim ates Arrears accumulated in June 1932 21-5 3 Due: J u l y ...... 14.23 A u g u s t ...... 15.24 Septem ber...... 26.7 4 O c to b e r...... 21.14 N o v em b er...... 19.2 4 D e c e m b e r...... 30.44 126.8
Total transfers due by the end of the year 148.3
1 Excluding forward transactions. a Of which approximately 21.5 million Schillings were not transferred. 3 Effective arrears, as estimated by the National Bank. 4 Debt service, as estimated by the National Bank. — II —
These figures represent a maximum transfer liability, as debtors and creditors are authorised and do in practice devise means of settling claims directly without passing them through the special account of the National Bank.
(c) Sta n d still A g r eem en ts.
It should be remembered that, under the original standstill agreements between Austrian and foreign banks and bankers, Austria had, by the end of the first half of 1931, paid back considerable sums, as the following table shows :
Situation at
The end of January 20th, June 30th, August 1931 1932 1932
$ (ooo's omitted) (a) United States of America: Current account credits .... 227.5 1 91.O 140.6 Acceptance cred its ...... 16,699.4 1 2“ 9,346.4 2 c 9,010.3 2 ‘
(b) United Kingdom: Current account credits .... 1,450.0 634-1 6364 Acceptance c r e d i t s ...... 6,726.1 3,003.5 2,773-1 (c) Switzerland : Current account credits .... 3,930.3 1,342.0 I,2l8.6 Acceptance cred its ...... 577-1 2 6 20.4 2 d 19.9 2 z Loans on bills pledged as colla teral ...... 416.0 347-1 306.7 (d) Netherlands : Current account credits .... 1,178.0 609.0 516.9 Acceptance cred its ...... 217.0 70.8 70.0
(e) France : Current account credits .... IIO.I 78.1 76 .I Acceptance cred its ...... 2, i 55-9 503.8 446.2
T o t a l ...... 33,687.4 16,046.2 15,214.8
These original agreements ran out on January 20th, 1932, and the renewed contracts provided for a cessation of capital repayments. The provisional suspension of transfer on June 23rd by the National Bank and the subsequent issue of the Transfer Decree of July 15th altered fundamentally the conditions under which the standstill agreements had been concluded, since their particular object had been precisely to enable Austria, by postponing capital repayments on her short-term debt, to continue the service of her long-term liabilities. Certain foreign banks were consequently inclined to look upon the transfer suspension decree as a breach of the standstill agreements. While reserving fully the principle involved, they have, however, pending negotiations which were immediately initiated, refrained from taking definite action or reprisals. The agreements of January 20th, 1932, ran out on July 20th, and the proposals of the Austrian bankers have been accepted only in part by the American and British creditors’ committees. Capital repayments have been postponed until January 1932, but no agreement has so far been reached upon the question of paying interest and commission due into the special Schilling transfer fund at the National Bank under the Decree of July 15th, 1932.
(d) Credit Situation.
In the second quarterly report (page 13, paragraph 8), mention was made of the restrictive credit policy planned by the newly-appointed President of the National Bank. It was further pointed out that the free allocation of foreign exchange to importers previous to his coming into office had stimulated the accumulation of merchandise stocks which had become the most common form of seeking refuge from the Schilling. Since then, reduced foreign currency allocations for import purposes and a widening system of private clearing arrangements (see section (/) below) made the financing of imports more expensive and consequently diminished their volume.
1 Previous to standstill agreement with the American banks, and not entirely covered by that agreement. 2 Excepted credits to the Austrian Federal Railways: (a) $3 million; (6) $2 million ; (c) $3 million, id) $ i.6m illion, (e) $2-55 million; (/) $1.6 million. ---- 12 ----
The import prohibitions of April 30th also tended to reduce the stocks of merchandise which had been built up when the flight from the Schilling was started by the collapse of the Creditanstalt in May 1931, as the following figures show:
Viennese Municipal Warehouse Stocks (Insured Value).
End of
First quarter Second quarter Third quarter Fourth quarter
(In thousands of Schillings)
1 9 3 1 ...... 3.902 8-459 9-307 I 3-348 1 9 3 0 ...... 3963 IO .648 9 5 7 0 6.391
January February March April May June
1 9 3 2 ...... 13.408 12.629 IO.255 7.729 7.409 1 9 3 1 ...... 6 .6 3 9 5-434 3 .902 3-452 6.041 8-459
While, under the influence of import prohibitions and foreign exchange restrictions, stocks may be still further reduced, these regulations will not furnish the country with the foreign exchange which will be required, once stocks are depleted, and cash payments will have to be made for current requirements. This result will only be achieved if monetary policy has in the meantime succeeded in creating sufficient confidence in the currency to attract to a free market the foreign exchange which is now being withheld and hoarded. If this cannot be achieved, the demand for foreign exchange will have to be satisfied at any price, and this will reinforce the tendency to rising prices (see Section 5 below) already inherent in the system of import prohibition and foreign exchange restrictions. The liquidation of merchandise stocks has not resulted in a contraction of the volume of credit (cf. National Bank balance-sheets, Appendix VIII), which shows that the measures mentioned above are ineffective in restoring confidence. Actually withdrawals of savings deposits during May and June compelled the banks to discount a greater amount of bills than the- liquidation of stocks would have enabled them to repay.
Savings Deposits.
Enc . of
January F ebruary M arch A pril M ay June
(In millions of Schillings)
1932 ...... 1,414 1,427 1,440 1,441 1,423 1,410
The following table gives the volume of discounts at the National Banks as published and the note circulation plus sight liabilities for the first half of 1931 and 1932 :
Enc 1 of
Ja n u a ry F ebruary M arch A pril May June
(In millions of Schillings)
1931: N o te s ...... 978.9 976.3 977.6 984.4 1,140.6 1,110-5 Sight liabilities . . I I I .7 82.7 66.4 64.I 142.2 180.4 Total . . 1,090.6 1,059.0 1,044.0 1,048.5 1,282.8 1,290.9 Bills ...... 135.9 113.- 92.1 89.2 451-3 528.7
1932: 961.8 N o te s ...... 1,092.8 1,043-9 1,008.6 991.1 994-7 Sight liabilities . . 112.9 128.5 128.4 II 3-3 i n . 7 i 49-2__ Total . . 1,205.7 1,172.4 1,137-0 1,104.4 1,106.4 1,111-0 B i l l s ...... 884.2 877.4 867.2 863.1 873-9 880.9 — 13 —
Since the volume of Creditanstalt bills has remained practically constant since the beginning of March, the increase in bills discounted is due to operations by the other banks. Notes and sight liabilities which have remained practically stable during the last quarter are well below last year’s figures.
The preceding parts of the present chapter clearly show that no progress has been made with regard to the foreign exchange and credit position of the country. It was pointed out in the second quarterly report that a double rate of the Schilling existed: a gold rate applicable to official transactions through the National Bank, and a depreciated rate on the domestic black markets and abroad. The extension of the system of private clearing and compensation agreements (see below) has widened the range of transactions based on the depreciated rate, while diminishing official allocations of foreign exchange to importers has reduced the amount of business transacted on the basis of the gold rate. The suspension of transfer eliminated, although perhaps only for a relatively short period, the greater part of the foreign exchange transactions still effected on the gold rate, so that it may be said that nearly the whole volume of transactions with foreign countries is now based on a free rate of the Schilling. The Austrian price level has practically adapted itself to the situation, but the very existence of this double rate of the Schilling stimulates the creation of speculative positions against the Schilling and the hoarding of foreign exchange. Consequently it is to be feared that the balance of payments, in spite of a reduced imports surplus, will continue to show an even greater apparent deterioration than is justified in fact by the increasing strangulation of trade through the spreading of prohibitive measures inside and outside the country. The chapters which follow show that gradually a huge structure—private and public clearing arrange ments, foreign exchange restrictions, import prohibitions and other measures—has grown up, which increasingly hampers the free and smooth working of international trade. It is perhaps not sufficiently realised inside the country that the suspension of transfer adds new difficulties to the already existing complications. The system of financing trade through foreign bank credit has thus been killed. The loan provided for in the Protocol has the purpose of enabling the country to initiate measures for breaking its chains. One of the most important provisions of the Protocol, contained in Article 5, embodies the conclusions at which the Mixed Committee arrived in agreement with the Austrian delegation with regard to monetary policy:
“ Austrian monetary policy will aim at the abolition as soon as possible, subject to the necessary safeguards, of the difference between the internal and external value of the Schilling and, in consequence, at the progressive removal of the existing control over exchange transactions and the resulting obstruction of international trade.”
(e) N a t i o n a l B a n k a n d C reditanstalt .
Since one of the necessary features of any scheme for reorganising the Creditanstalt must be the relieving of this Bank from its liabilities to the National Bank, the Government has put a Bill before Parliament for this purpose, which may be summarised briefly as follows : The Federal Government has guaranteed 571 million Schillings of the 683 million Schillings bills discounted by the Creditanstalt at the National Bank. These guaranteed bills are to be handed over to the Government, thereby increasing the Government debt to the Bank, which now stands at 92 million Schillings, and would, according to this arrangement, be increased to 663 million Schillings. This debt is to be divided into three parts, respectively entitled Government Debt A, B and C. Debt A will consist of the old Government Debt plus 171 million Schillings of new liabilities, totalling 263 million Schillings; Debts B and C will comprise each 200 million Schillings, together 400 million Schillings. Debt A is roughly equal to the Government Debt when the National Bank was first founded and, like the old debt, will only bear 1% interest in the measure that this interest is required for the payment of a 6% dividend on the Bank share capital. Amortisation, at the rate of 0.5%, will only commence in 1946. Debt B is free of interest and will be repaid out of the yield of the internal loans provided for in Article 6 (Annex III) of the Protocol.1 In the meantime, from January 1933, monthly sinking fund payments of 1 million Schillings, rising to 1.25 million Schillings in July of that year, are to be made by the Government. Debt C is to be amortised by the statutory receipts of the Government from the Bank in respect of:
(a) Notes called in but not presented for payment and consequently written off (Bank Statutes, Article 9); (b) Dividend payments to Government ;
1 Article 6 (Annex III) of the Protocol reads as follows : " The Austrian Government undertakes to effect a settlement of the debt of the Creditanstaltto the National Bank and to issue as soon as possible one or more internal loans of a total amount of not lessthan 200 million Schillings for the partial reimbursement of the debt due by the State to the National Bank. — I4 —
(c) The yield of the tax on the banknotes issued in excess of the maximum permitted by the legal cover ratio (Article 39). In addition to these sums the Government, commencing in 1936, will pay a further sum of 2 million Schillings, rising in 1937 to 4 millions, and to 6 millions in 1938, until this debt, which carries interest at 3%, has been totally wiped out. The various payments above correspond in principle to one of the annuities foreseen in Dr. van Hengel’s reconstruction plan for the Creditanstalt. The Bill further introduces several important modifications in the Statutes of the Bank. In the light of the heavy reduction of the monetary reserve and of the recommendations of the report of the Gold Delegation of the League of Nations (Chapter XV), the gold-exchange standard is maintained, and the legal minimum cover ratio will be reduced for the next five years from 24 per cent to 20 per cent, the ratio at which the Bank first issued notes. The maximum ratio, which will come into force in fifteen years time, will no longer be 33 y3 per cent, but only 25 per cent. Of great importance is the new allocation of the surplus remaining after distributing the statutory dividend of 6% (previously 8%). The governing principle is the increase of the share of the Government, so as to allow of a more rapid amortisation of Debt C. The modifications in the Statutes stipulated in Article 4 (Annex III) of the Lausanne Protocol are also embodied in this Bill, and these modifications read as follows : “ The provisions concerning the functions of the Adviser, which formerly constituted Articles 124 to 129 of the Statutes of the Austrian National Bank, as enacted by the Federal Law of November 14th, 1922 (Bundesgesetzblatt, No. 823), shall be reincorporated in the Statutes, except that the words ‘ Commissioner-General of the League of Nations ’ shall be replaced by the words ‘ Council of the League of Nations ”
(/) C l e a r i n g A g r e e m e n t s .
1. Private Clearings and Compensation Agreements.
The authorisations given by the National Bank under the provisions of the Foreign Exchange Regulations for the payment of Austrian exports in Schillings—Compensation Agreements—and for the delivery of foreign exchange by Austrian exporters to Austrian importers—Private Clear ings—were rather exceptional during the first quarter of the year. In recent weeks, however, such authorisations have been made in an ever-increasing number of cases. It is argued that this policy has become imperative, since the constant fall in prices on foreign markets, the increased competitive powers of countries which have abandoned the gold standard and the increased competition by certain countries which are compelled to force their exports rendered the maintenance of Austria’s position as an exporting country impossible if the gold Schilling had to remain the basis of the costs of production of the industries concerned. The procedure in practice is somewhat as follows : Austrian exporters either permit their foreign clients to pay in Schillings, so as to allow them the benefit of the lower valuation of the Schilling in foreign markets, or they are enabled to agree to lower prices in foreign exchange by the fact that they are authorised by the National Bank to sell such foreign exchange to Austrian importers at a premium. In principle, the authorisation for the establishment of private clearings is given only in the cases where the Austrian exporter can prove to the satisfaction of the National Bank that he is thus enabled to secure additional exports and that this would be impossible should he have to deliver the foreign exchange acquired by exports to the Bank at the official rate. Compensations are now applied on a vast scale, as they are not limited to private agreements, and have become increasingly important in the official State Clearing Agreements.
2. State Clearing Agreements. The private compensation agreements have indeed been incorporated in the new State Clearing Agreements which have been concluded meanwhile with Yugoslavia, France and Switzer land; the Clearing Agreement with Roumania has even been constructed mainly on the basis of private compensation. The office for foreign exchange regulations in Czechoslovakia has adopted the practice of allocating to Czech importers of Austrian goods, for payment to the Austrian exporters, those Schilling balances which are accumulating in Austria to the credit of Czech exporters. This practice shows that Austrian claims originating from exports to countries where severe foreign exchange restrictions are also in force can best be liquidated through compensation, and, in fact, an important part of Austrian exports are now being settled in this fashion. Clearing arrangements such as those with Switzerland and Italy, which had been concluded at the time on the basis of the gold Schilling, have broken down during the second quarter of the year owing to the fact that exports from Austria become impossible when they have to be effected at a cost of production based on the gold Schilling. For this and the other reasons given in the second quarterly report, arrears of payments have accumulated under the system of these agreements in the form of balances of Schillings in Vienna.
Swiss Clearing Agreement.
The first Swiss Clearing Agreement was concluded on December 10th, 1931, and terminated on April 10th by the conclusion on April 9th of a new treaty providing for the liquidation of the arrears of payments. To this effect payments into the Vienna account were stopped, whereas — 15 — they continue in Switzerland until the arrears have been repaid. Existing Schilling balances in Vienna may be used for exports to Switzerland. Payments into the central accounts in Switzerland and Austria for imports from December ioth, 1931, to June 30th, 1932, were:
Account for goods Account for debt Total
Swiss francs Swiss francs Swiss francs Payments into Swiss account...... 4,156,858 1 2,198,1081 6,354,966 Out-payments...... 4,013,296 1,788,479 5,801,775
B a la n c e ...... 143,562 409,629 553,191 Arrears of payments in Switzerland . . . 7,065,736 7,065,736
Schillings Schillings Schillings Payments into Vienna a c c o u n t...... 15,870,466 2,462,701 18,333,167 O u t-p ay m en ts...... 9,327,618
B a la n c e ...... 9,005,549 Arrears of payments in V ie n n a ...... 75,206
French Clearing Agreement.
N otwithstanding the unfortunate experiences made with clearing arrangements on the basis of the gold Schilling, the Clearing Agreement with France, concluded on April 16th (entered into force on May 1st), adopted this system in the hope of liquidating in this way the arrears of payments to French exporters. It is true that compensation agreements can be made outside the Clearing Agreements, but the arrears are nevertheless increasing. The Agreement provides for additional payments in Schillings to be made by Austrian debtors if the official rate of the Schilling were changed.
Account A 2 A ccount B 2 T otal
Schillings Schillings Schillings Payments into Vienna account from May ist to June 30th, 1 9 3 2 ...... 915,203 4,873,614 5,788,817 Out-payments...... 217,383 217,383
B a la n c e ...... 9I5,203 4,656,231 5,571,434
French francs French francs French francs Arrears of payments in P a r i s ...... 3,287,013 17,437,018 20,724,031
Italian Clearing Agreement.
A ccount A A ccount B (after January ioth, (before January T otal 1932) io th , 1932)
Lire Lire Lire Payments into Italian account from January ioth to June 30th, 1932 .... 17,945,543 7,690,947 25,636,490 Out-payments...... 17,944,661 7,685,384 25,630,045
B a la n c e ...... 882 5,563 6,445 Arrears of payments in I t a l y ...... 44,203,026 8,555,429 52,758,455
1 One-third of all payments into the Swiss account had to be applied to the payment of debts in Switzerland. 2 Account A will receive payments becoming due after the coming into force of the Agreement (May ist, 1932); ccovmt B, payments due prior to that date. -— i6 —
For payments of goods
After January ioth, Before January T otal 1932 io th , 1932
Schillings Schillings Schillings Payments into Vienna account from January ioth to June 30th, 1932 .... 23.275,554 6,044,8 77 29,320,431 O u t-p a y m e n ts ...... 9.584,851
B a la n c e ...... 19,735,580 Arrears of payments in V i e n n a ...... 4,l6l
The Italian Clearing Agreement was terminated on March 24th. A new agreement was made on July 7th in order to liquidate arrears accumulated by the previous adoption of the gold Schilling as the basis of transactions.
Yugoslav Clearing Agreement. The Yugoslav Clearing Agreement failed on account of reduced purchases of Austrian goods as a consequence of decreasing purchasing power of the Yugoslav population. Consequently, arrears of payments to Yugoslav exporters accumulated in the form of Schilling balances in Vienna. On April 20th a new Clearing Agreement was made for the liquidation of these arrears, (a) by allowing existing Schilling balances to be applied to the payments of Austrian exports, (b) by compensation of Yugoslav arrears of payments originating from old Austrian claims with the new arrears of payments to Yugoslav exporters, (c) by including Austrian financial claims. Progress in the liquidation of existing arrears is, however, slow. The present position is as follows: Schillings Payments into Vienna account between January 20th and June 30th, 1932 22,982,740 O u t-p a y m e n ts ...... 10,926,356
B a la n c e ...... 12,056,384 Arrears of payments in V ie n n a ...... 72,993
D inars Payments into Yugoslav account between January 20th and June 30th, 1932 ...... 85,693,789 O u t-p a y m e n ts ...... 80,479,311
B a la n c e ...... 5,214,478 Arrears of payments in Y u g o s la v ia ...... 100,956,144
Hungarian Clearing Agreement. The Hungarian Clearing Agreement is the only one which has functioned well, as both curren cies were at a somewhat corresponding discount on foreign markets. Trade between the two countries balanced if Hungary’s wheat exports were excluded from the clearing. These exports were originally paid for in dollars, but, since the Clearing Agreement was denounced on June 14th under the provisional regime which was then introduced, only half of these payments are effected in dollars, the remainder being paid into an inland Schilling account : Pengo Payments into Budapest account between December 15th, 1931, and June 30th, 1 9 3 2 ...... 35.i37.5oi O u t-p a y m e n ts ...... 36,623,974
B a la n c e ...... — 1,486,473 Arrears of payments in B u d a p e s t...... 1,527,425
Clearing W heat Inland account account account
Schillings Schillings Schillings Payments into Vienna account between De cember 15th, 1931, and June 30th, 1932 47,420,l 8l 9,917,765 5,815,426 O u t-p a y m e n ts ...... 43,674,041 8,973,424 1 1,253,75!
B a la n c e ...... 3,746,140 944,341 4 ,561,675 Arrears of payments in V ie n n a ......
1 Any amount drawn is paid out in dollars. — i 7 —
Germany, the Netherlands, Sweden and Other States.
Agreements were made with Germany, the Netherlands and Sweden to the effect the that existing balances in Schillings of subjects of these States can be applied to the payment of exports, on the condition that part of the price is paid in foreign exchange to the National Bank. Liquida tion of old commercial debts is thus proceeding regularly. The Austrian Government has offered similar facilities to other States, such as Denmark and Spain.
Roumania.
The Clearing Agreement concluded with Roumania on July 14th (entering into force on July 15th, 1932) is the most recent type of a clearing constructed on the basis of compensation. Balances in Schillings of Roumanian subjects can be applied to payment of Austrian exports to Roumania as well as to the payment of other Roumanian debts if the Austrian creditor agrees to payment in Schillings. Balances in lei of Austrians will be handled in the same way, but Roumania has undertaken to liberate in foreign exchange 20 per cent of such compensation transactions.
Bulgaria, Greece and Turkey.
Special agreements have been made with Bulgaria and Greece for tobacco purchases which are contracted for in dollars but paid into a Schilling account in Vienna. These Schilling balances are used for paying Austrian exports to these countries. The amounts involved in each case are about 1 million dollars. A similar agreement will be made with Turkey, from which country tobacco is purchased to the extent of 600,000 dollars a year.
The settlement of arrears of commercial payments has been carefully examined in the Mixed Committee, so as to prevent such payments from exercising undue pressure on the Austrian currency.
5. ECONOMIC SITUATION.
(a) G e n e r a l .
During the second quarter of 1932 general economic conditions in Austria have followed the trend of the preceding periods, though in an aggravated form due to the fuller working-out of the increasingly severe restrictive measures applied by. one State after another in suicidal imitation of each other’s mistakes. Import prohibitions and a suspension of foreign debt service transfers were enacted by decree in April and June. The effects of these are described in detail in other pages of the present report.
( b) Foreign Trade.
Appendix XI gives the foreign trade returns for the first quarter of the years, for the months of April, May and June, and for the first half year of 1932, corresponding figures being given for 1931. The rapid decline in the figures of both imports and exports, under the influence of domestic and foreign restrictive measures, is clearly noticeable, as the total trade figures for the three months were 193.1, 186 and 182.7 million Schillings respectively, the corresponding figures for I93i being 315.3, 309.5, 312.4 million Schillings. Total trade in June 1932 was, therefore, less than 60 per cent of that in the same month of 1931. Under the influence of exchange restrictions, imports have fallen off more than exports, thus considerably improving the trade balance, by 67.3 million Schillings for the first half year °f 1932 as compared with the same period of 1931. Exports of finished goods, the only active item in the Austrian trade balance, are under 60 per cent of those in the first half of 1931, while the export surplus of this class has fallen to 17 per cent of the surplus in 1931, from 69.6 million Schillings to 12.4 million Schillings. While the improvement in the trade balance is satisfactory, one must look askance at it when it is accompanied by such a shrinkage of the volume of trade and of the most significant items in the exchange of goods. The Austrian trade returns, like those of most countries at the Present moment, are another proof, if additional proof were wanted, that the commercial policies now in force are bringing, and can bring, no improvement in the economic situation. — i8 —
(c) P r o d u ctio n.
The index of industrial production reached in May the lowest level since January 1925 and was 75.4. A sign of the gravity of the situation is not the low absolute level but the rapid decline of the index, in the period April-May, from 85.6 to 75.4. A similar fall is to be expected when the index for June becomes available. Coal production in May reached a new low level for the year, and so did the production of lignite. In this connection, it should be mentioned that the Government has already introduced and is planning further legislation for enforcing a compulsory mixture of home coal with all imported mineral fuel. June figures for the iron and steel industry are already available and show, through the cessation of pig-iron production, the effect of the extinction of all blast-furnaces in the country, accompanied by a natural fall in iron-ore output from 32,000 tons in May to 6,000 tons in June. Steel and rolling- mill production, however, shows an increase in June, but is well below the level of 1931 and of the first quarter of 1932. Cotton-yam production, though above last year’s level, fell in May, and from other signs it appears likely that the whole textile industry is no longer enjoying the relative prosperity which, during the last few months, had distinguished it from the general run of Austrian industry. Paper, cellulose and cardboard production receded in May, though wood-pulp production in that month rose from 836 to 891 wagons. Beer production increased during the period under review, but is well below last year’s level.
(d) E m plo y m en t.
Unemployment for the year was lowest at the end of June, as the available figures for the middle of July show an increase of 4,000 to 265,400. The seasonally corrected index for the second quarter shows a considerable increase during the period, from 165.3 to 219.0. A clearer or more significant token of the widespread economic depression in Austria could scarcely be found, or one with more far-reaching effects on social, economic, financial and political activity.
(e) P r ic e s .
The movement of the different price indices has not been homogeneous during the second quarter of 1932. All that was said about the general price situation in the second quarterly report (page 15) is still valid, and the spread between Austrian Schillings prices and world sensitive prices increased during the period. Within the country the sensitive price index fell 2 points from 55.5 to 53.5 between March and June, while wholesale prices rose two points, from 113 to 115, having reached 116 in May. Retail prices remained practically constant, moving from 143 to 144. Comparison with world prices shows that the Austrian price level has really risen during the period, in as far as the spread has increased ; a further rise is to be expected as a result of proposals for new taxation now before Parliament and if the present restrictive trade policy is maintained.
(/) Stock E x c h a n g e.
The stock market shows little activity, the index based on the values of thirty-six industrial shares falling during the period from 67.9 to 62.9. Neither the result of the Reparations Conference nor that of the purely Austrian negotiations in Lausanne stimulated dealers to activity.
(g) Viennese Banking Position.
The question of the Creditanstalt has been dealt with in Chapter 2 (/). As mentioned there, the Creditanstalt was exempted from the duty of publishing a balance-sheet. It is therefore impossible to examine the situation of this Bank, but it is interesting to review the situation of the other leading Viennese banks, which have published their balance-sheets for 1931.
(1) The Capital Reorganisation of the Wiener Bankverein,
The Austrian Banks have not been entirely spared the losses which most other banks in Central Europe have incurred, and it has been thought necessary to write them off before publishing the balance-sheets for 1931. The management of the Wiener Bankverein has put its investments, in so far as these were quoted on stock exchanges, at the value given by the quotations on December 31st, 1931, and has also proceeded to a new valuation of its participations in syndicates, etc. The losses on these items amounted to 23.15 million Schillings. Claims on debtors were revaluated, taking into account bankruptcies which occurred before the end of 1931 and since then. This — 19 — loss was placed at 22.46 million Schillings. Thus, total losses to be written down were 45.61 million Schillings. These losses were covered as follows : In millions of Schillings Carry forward from 19 3 0 ...... 0.19 Profit for 1 9 3 1 ...... 1.02 Published r e s e r v e s ...... 27.53 Reduction of c a p i t a l ...... 22.—
Total available for writing off lo ss e s ...... 50.74 leaving a balance o f ...... 5.13 of which 5 million Schillings were carried to reserves.
The share capital which was 55 million Schillings at the beginning of the year was reduced to 44 millions by the purchase on the market of 550,000 shares of 20 Schillings, par value, which were cancelled, the difference between purchase price and the par value being attributed to hidden reserves. A further reduction of share capital from 44 to 22 million Schillings was then carried out at the end of the year. This reduced capital of 22 million Schillings was again increased by the issue of 23 million Schillings new stock preferred as to distribution of capital in case of liquidation and with equal dividend rights as the old shares. The new capital was subscribed for by a syndicate consisting of the “ Société Générale de Belgique ”, “ Banque belge pour l'Étranger ”, and the “ Deutsche Bank und Diskonto-Gesellschaft " in co-operation with an Austrian group headed by the Austrian National Bank. The balance-sheet for December 31st, 1931, was rearranged according to these modifications (see Appendix X). After protracted negotiations, progress was made in the reduction of costs by an agreement arrived at with the staff through which the charges for salaries and pensions were reduced from approximately 15 to 12% million Schillings. It should be observed, however, that the figures are still above the corresponding pre-war item (see Appendix X), when earning assets were three times their present value.
(2) The Niederôsterreichische Eskompte-Gesellschaft. This Bank has written off from its hidden reserves the losses which it had incurred on its investments and participations. The profit of 3,094,200, Schillings declared on last year’s operations, was carried forward, so that no dividend was distributed. The staff expenses of this Bank, which has no branches, although only half those of the Wiener Bankverein, are nearly double the pre-war figure, whereas earning assets are about a quarter less.
* * *
The profit-and-loss account figures of the principal Viennese banks in Appendix X and the comments given above indicate clearly that the reduction of the administrative costs of all the Austrian banks constitutes one of the most urgent problems connected with the financial recon struction of the country. Unfortunately, the illusions of the post-war period as to the feasibility of charging high rates of interest have not yet been definitely dispelled. All available evidence points, however, to the arrival of an era of low interest rates, in which the Austrian banks cannot expect to charge their clients rates which either seriously threaten their competitive powers or drive them into bankruptcy. This problem can only be solved satisfactorily if it is approached by all concerned in a spirit of honest and wholehearted co-operation. The question was examined by the Mixed Committee and its views are embodied in Article 7 of Annex II of the Lausanne Protocol, which runs as follows : “ In conformity with the declaration made in September, and in view of the responsibility assumed by the Austrian Government in regard to the Creditanstalt, the Government will take the necessary steps to secure a reduction in the administrative expenses of that Bank and of the other banks operating in Austria.”
(h) Commercial Policy.
(1) Import Prohibitions. On April 28th, the Standing Committee of the Austrian Nationalrat adopted an Ordinance forbidding the importation of 73 articles of the tariff classification without permit. This Ordinance Was published on April 30th and came into force on May 1st. The introduction of such a measure had been expected almost daily since the declaration made by the Federal Chancellor to the Powers on February 18th, 1932 (second quarterly report, page 30). After stating his readiness to open negotiations with any State for the purpose of establishing improved commercial relations, Dr. Buresch had then expressed the hope that the — 20 —
regulation of imports which he considered necessary under the present circumstances would not jeopardise these trade relations. This announcement raised even then a storm of protests from every sector of Austrian industry and commerce. Articles appeared in all the papers severely criticising the proposed measures. They were all based on the argument that what the country needed was to increase its exports and that to refuse the imports of other countries by artificial means was not the proper way to set about it. The ruin of all businesses distributing imported goods to other Central and Eastern European countries was also prophesied. The Ordinance establishes that:
(a) In consideration of the present extraordinary economic conditions, the import of the articles mentioned are forbidden unless a special authorisation is obtained. (b) This will be granted by the Finance Ministry in agreement with the Ministries of Commerce and Agriculture. The regulation for executing this Ordinance will be drawn up after consultation with the National Bank, the Chambers of Commerce, Industry, Trade, Agriculture, and Employees.
The goods affected are mainly so-called luxury foodstuffs, swine, cattle, and finished goods which compete with Austrian products. The approximate value of goods falling under the import prohibitions and imported during 1931 was: In millions of Schillings Total value, about...... 350 Pigs, cattle, calves, p o u ltry ...... 160 Motor-cars and t y r e s ...... 16 Oranges, etc...... 17 Wine and liq u o rs...... 14 Meat and s a u s a g e s ...... 40 Cotton te x tile s ...... 50 Butter, cheese, condensed m ilk ...... 10 S h o e s ...... 9 It will be impossible to stop the imports of these goods altogether. Estimates place the reduction which may be achieved during the year at about 200 to 250 million Schillings. The following table shows, with the incomplete material at present available, the effect of the Ordinance on imports during the two months since its enforcement. These statistics are based on the rough classification of the published monthly foreign trade statements, and the various items contain a certain proportion of goods which are not affected by the prohibitions and which it has not been possible to eliminate.
Import of Articles jailing under the Import Prohibitions of April 30th, 1932.
Weight Value
In thousands of In millions metric tons of Schillings
May and June: 1932 1931 1932 1931
P i g s ...... I I .5 0 1563 14.9 16.1 Poultry and game ...... — ■71 —.86 1.6 1.9 Oranges, etc...... 5-45 8.68 3-5 55 W in e ...... 2.49 5.83 1.- 2.7 Meat and sausages ...... 1.84 5-68 3-2 8.4 Cheese ...... -•35 -•6 5 -•5 1.2 Cotton goods ...... -.82 15-30 8.7 I 7'3 Paper and paper goods. . . . 1.06 2.42 2 - 4.4 Shoes ...... -.03 -.11 -.6 2.2 M o to r-c a rs ...... -•39 -•74 2.1 4-5
In applying this new Ordinance, the balance of trade with each individual country is to be taken into consideration with the object of equalising imports and exports from and to each, special preference being given to countries with which Austria has an active balance, such as Italy, Switzerland, and Yugoslavia. Countries which are absorbing articles which are essential for the maintenance of Austrian industry and export trade will also receive special consideration. The present prohibitions are intended to be only temporary measures pending the carrying through of the necessary international negotiations with Austrian customers. A further list of articles under the same Ordinance of April 29th was published on July 4^- It applies principally to agricultural products — flour, fresh fruit, vegetables, eggs, etc.— and is to be considered in conjunction with the prolonged commercial treaty negotiations with Hungary rather than as a general economic measure. — 21 —
(2) Commercial Treaties. After the London Four-Power Conference, the Austrian Government saw little chance of any immediate international action contributing towards an improvement of the country’s rapidly shrinking foreign trade. Dr. Buresch, who was then Chancellor, accordingly repeated his readiness, expressed in his declaration of February 16th, to negotiate on the basis of mutual preferences with individual countries. The introduction of import prohibitions already referred to has made the revision of the exist ing treaties necessary, and it appears that negotiations for new commercial treaties based on mutual preferences are now in course with Poland, Yugoslavia and Roumania. The commercial treaty with Hungary lapsed at the end of June, and negotiations for its prolon gation commenced at the beginning of that month. It was at first intended to substitute clear preferential treatment for the previous system of contingents. Difficulties however arose, and the end of the month and of the life of the treaty was reached without any agreement being in sight. A temporary prolongation for fifteen days was also allowed to run out, and July 15th saw Austria and Hungary without any treaty. On the same date, the Austrian Government published a new schedule of import prohibitions, affecting mainly agricultural products. Negotiations between the two countries, at the time of waiting, are being continued. Appendix I. SUMMARY OF BUDGET ACCOUNTS.
1932 First Quarter Second Quarter First Half Year
1931 [932 1931 1932 1931 1932 1931 Including Investments Closed Originally Supple Accounts Voted m entary Provisional Provisional Provisional Provisional Estim ates Estim ates Estim ates Estim ates Estimates 3 Results Results Results Results
Millions 0 Schillings A. Administration Proper: R eceipts...... 1,278.61 1,280.42 1,258.88 289.24 292.14 2 8 1 .I9 310.02 321.49 602.16 602.68 Expenditure...... 11,710.83 1,361.85 I-397-92 364-14 354-26 388.O I 329.72 478.53 683.98 8 66.54
— 432.22 — 81.43 — 1 3 9 0 4 — 74-90 — 62.12 — 106.82 — 19-70 — I 57.04 — 8l.82 — 263.86
B. Monopolies: R eceipts...... 449-77 446.66 447.42 107.28 108.14 106.17 108.87 I I 8 .3 4 217.O I 224.51 Expenditure...... 230.60 194.72 189.83 41.46 45 14 54-25 49-39 65.82 94-53 120.07
+ 219.17 + 251.94 + 257-59 + 65.82 + 63.00 + 51-92 + 59-48 ■ + 52.52 + 122.48 + IO 4.44
C. Public Undertakings: R eceipts...... 279.99 274-93 256.68 65.90 60.12 76.15 60.41 62.02 120.53 138.17 Expenditure...... 34I -07 286.25 277.03 70.73 69.90 82.98 69.78 9O .I7 139.68 173-15
— 61.08 — 11.32 — 20.35 — 4-83 — 9.78 - 6 . 8 3 — 9-37 — 28.15 — 19.15 — 34-98
D. Railways: R eceipts...... 0.15 0.05 1 1 3 0.03 0.04 0.06 0.00 0.02 0.04 0.08 Expenditure...... 48.16 56.89 99.28 36.37 36.37 15.36 9.88 6.40 46.25 21.76
— 48.01 - 56.84 - 9 8 . 1 5 — 36.34 — 36.33 — 15.30 — 9.88 -6.38 — 46.21 — 21.68
Total Receipts...... 2,008.52 2,002.06 1,964.11 462.45 460.44 463.57 479-30 5O I.87 939-74 96544 Total Expenditure ...... 2,330.66 1,899.71 1,964.06 512.70 5 0 5 6 7 540.60 458.77 640.92 964.44 1,181.52
B a la n c e ...... — 322.14 + 102.35 + 0.05 — 50.25 — 45.23 — 77-03 + 20.53 — 13905 — 24.70 — 216.08
Current Account Balance . + 5-62 --- 2IOO.OO + 13-35 + 21.32 — 4.26 - 3 8 . 1 1 + 220.00 — 16.79 -j- 216.74
Total Balance ...... — 316.52 + 2.35 + 0.05 — 36.90 — 23.91 — 81.30 — I 7-58 + 80.95 — 41.49 + 0.66
1 Including 100 million Schillings for the Creditanstalt. 2 For reduction of Floating Debt. 3 Provisional Results January-April all receipts and May Receipts of Administration and Monopolies. — 24 —
Append
ANALYSIS OF ANNUAL AJ
First quarter Second quarter
1932 1932 1931 1932 RECEIPTS 1931 Quarter of voted Revised Provisional Provisional Revised Provisional estim ates estim ates results results estimates 1 results
Milk, A. Administration: Direct t a x e s ...... 9I25 92.30 81.10 87.79 83.41 84.82 Import duties...... 63-50 52.00 62.02 57-50 58.21 58.60 Export duties...... 0.05 O.05 0.24 O.II 0.04 O.08 Transitional duties on wheat, etc...... 0.06 Excise duties...... 42-33 41.28 4 2 .5 4 38.56 39-46 45.56 Turnover ta x ...... 49-50 5 I .8 o 48.21 54.84 44.22 52.48 Taxes on transactions, legal fees, etc...... 29.75 28.60 29.05 30.00 29.27 31.80 Accessory receipts ...... O.38 O.36 0.40 O.3I 0-44 0.40
Total taxes...... 2 76.76 266.39 263.62 2 6 9 .II 255 05 27374
Deduct : Shares of local authorities . — 60.84 — 65.87 — 62.16 — 66.26 — 54-io — 5678
Total State taxation. . . 215.92 200.52 201.46 202.85 200.95 216.96
Receipts of Social Administra tion ...... 60.03 57-50 56.57 47.04 57-37 48.62 Other administrative receipts . 18.OO 19.02 23.24 22.65 13.01 l 6.73 Contribution towards Debt S e r v ic e ...... 26.16 12.20 10.87 8.65 38.69 39.18
Total receipts of the Administration .... 3 2 O .II 289.24 292.14 281.I9 310.02 321.49
B. Monopolies: Tobacco ...... 88.00 76.67 77-34 75-52 83.42 96.14 S alt...... 7.42 8.00 7.87 8.31 6.82 7.48 Lotteries and gunpowder. . . 16.24 22.61 22.93 22.34 18.63 14.72
Total: Monopolies. . . . h i .66 107.28 108.14 I0 6 .I 7 108.87 I l 8.34
C. Public Undertakings : Posts and Telegraphs .... 59-38 57-34 51-99 66.16 52.10 5i-5° F o r e s ts ...... 3 0 9 2.40 2.48 2-77 2-37 3-11 Federal Theatres...... 1.76 1.49 1.65 2 .0 4 1.50 1.69 Other ...... 4-50 4 .6 7 4 .0 0 5- i 8 4-44 5-72
62.02 Total: Public Undertakings 68.73 6 5 .9 0 60.12 76.15 60.41
D. Railways: Federal Railways...... — 0.02 Other Railways...... 0.01 0.03 0.04 0.06 0.02 Total: Railways .... 0.01 0.03 0.04 0.06 — 501.87 Total Receipts...... 500.51 462.45 460.44 463-57 479-30
1 Provisional results for all April receipts and May receipts of State taxes and monopolies. — 25 —
JARTERLY b u d g e t a c c o u n t s .
First half-year 1932 1931 1932 1932 1931 Half of Originally Supplemen RECEIPTS voted voted tary Closed estimates Revised Provisional accounts estim ates estimates 2 results estim ates
Schillings A. Administration: 182.50 164.51 172.61 365.00 330.00 342.38 Direct taxes 127.OO 120.23 116.10 254.00 241.50 267.06 Import duties O.II 0.28 0.19 0.32 0.22 0.30 Export duties Transitional duties on wheat, 0.06 5-71 etc. 84.65 82.00 84.12 169.30 15510 185.37 Excise duties 99.OO 92-43 107.32 198.00 227.00 219.18 Turnover tax Taxes on transactions, legal 59-50 38.32 61.80 119.00 109.70 120.48 fees, etc. 0-75 0.84 0.71 1.50 1.50 1-52 Accessory receipts
553-51 518.67 542.85 1,107.02 1,065.02 1,142.00 Total taxes
Deduct : -121.67 -116.26 — 123.04 -243-35 — 212.77 —249-59 Shares of local authorities
43I-84 402.41 419.81 863.67 852.25 892.41 Total State taxation
Receipts of Social Admi 120.08 113-94 95-66 240.15 231.17 204.99 nistration 36.02 36.25 3938 72.03 70.89 80.73 Other administrative receipts Contribution towards Debt 52.27 49-56 47-83 104.57 104.57 100.48 Service Total receipts of the 640.21 602.16 602.68 1,280.42 1,258.88 1,278.61 Administration
B. Monopolies : 176.00 160.76 171.66 352.00 352.00 352.80 Tobacco 14-85 14.69 I5-79 29.70 29.70 31-35 Salt 32.48 4I -56 37.06 64.96 65.72 65.62 Lotteries and gunpowder
223-33 217.01 224.51 446.66 447.42 449-77 Total : Monopolies
C. Public Undertakings: « 8 .7 5 104.09 117.66 237-50 222.50 239. Ï2 Posts and Telegraphs 6.19 4-85 5.88 12.37 9-37 13.11 Forests 3-52 3-15 3-73 7.04 7.04 6.46 Federal Theatres 9.01 8.44 10.90 18.02 17.77 21.30 Other
Total: Public Under 137-47 120.53 138.17 274-93 256.68 279.99 takings
D. Railways : 1.08 Federal Railways 0.04 0.0 8 0.05 0.05 0.15 Other Railways
0.04 0 .0 8 0.05 113 0.15 Total: Railways
,001.03 939-74 965-44 2 ,002.06 1,964.11 2,008.52 Total Receipts
Provi0visional results January-April for all receipts and for May receipts of State taxes and monopolies. — 26 —
ANALYSIS OF ANNUAL AN
First quarter Second quarter 1932 1932 1931 1932 1931 EXPENDITURE Quarter of (including investments) voted estim ates Revised Provisional Provisional Revised Provisional estim ates results results estim ates1 results
Mil] A . A d mini strati on : A rm y ...... 20.67 20.90 21.63 24.44 20.79 25-93 Foreign Affairs...... 1.50 I.3 2 1.32 1.72 I.2 7 1.71 J u s t i c e ...... 12.51 12.49 12.35 13.86 12-34 14.49 Supreme organs ...... 1.26 1 .18 1.18 1.39 I -13 i-35 Chancellor’s office...... ï -74 2.65 2.64 i -95 1.66 i.gii I n te r io r ...... 23 94 23.72 2 3 5 7 26.02 23.19 27-53 Social Administration .... 104.22 127.74 123.86 117.44 105.46 92.52 Agriculture ...... 11.04 8-93 8.70 24.18 9-36 26.89 Commerce and Traffic . . . 1 7 2 5 1 4 .11 14.01 20.83 16.67 24.88 Education, Science, Church . 19.02 18.31 18.33 22.34 18.51 23-51 Finance ...... 16.14 16.12 16.46 24.06 15.63 128.72 Subsidies to Postal Savings B a n k ...... 0-75 0-75 0.75 1.38 0-75 1.20 Payment to local authorities . 6-54 6.17 6.16 6.63 6-57 6.87 Pensions...... 51.60 5 3 1 3 5 3 1 9 54.60 52.76 59-87 Charges under the Peace Treaty ...... 0.60 O.I2 0.09 349 0.63 0.61 Debt Service...... 51.68 56.50 50.02 43.68 43.00 40.47
Total : Administration. . 340.46 3 6 4 1 4 3 5 4 2 6 388.01 329.72 478-53
B. Monopolies: Tobacco ...... 33.12 29.48 29.14 41.11 31.86 45-59 S a lt...... 3.8i 3.81 3.68 449 3-7° 4.06 L o t te r ie s ...... 10.14 6.60 11.05 7.04 12-53 14-59 G u n p o w d e r...... 1.62 1-57 1.27 1.61 1.30 i-5*
Total: Monopolies . . . 48.69 4M 6 4 5 1 4 54-25 49-39 65.82
C. Federal Undertakings: Posts and Telegraphs .... 59-25 58.33 58.07 68.37 57-89 75-85 F o r e s ts ...... 4-95 4 .9 6 4.70 556 4-78 5-49 Federal Theatres...... 2.85 2.97 2.93 3 8 3 2.90 3-55 5.28 Other Undertakings .... 4 SI 4-47 4 .2 0 5.22 4.21
Total: Undertakings . . 7 1 5 6 7°-73 69.90 82.98 69.78 90.17
D. Railways: Federal Railways...... 10.10 31.85 31.86 10.60 5.19 1.25 Charges under the Siidbahn 2.38 C o n v e n tio n ...... 2.41 2-39 2 .3 8 2.38 2-39 Other Railways ...... 1.71 2.13 2.13 2.38 2.30 2-77 6.4» Total: Railways .... 14.22 36.37 36.37 15.36 9.88 640.92 Total Expenditure . . . 474-93 51 2 .7 0 505.67 540.60 458.77 501.87 Total Receipts...... 500.51 462.45 460.44 46357 479-30
S u rp lu s ...... 25-58 20.53 139.05 D e f ic i t ...... 50.25 45.23 77-03 _j-220.00 Current Account Balance. — 25. oo3 + 13-35 + 21.32 — 3 2 6 — 38.11 -f 80.95 Total Balance ...... + 0.58 — 3 6 .9 0 — 23.91 — 80.29 — 17-58
1 Provisional results for all April receipts and May receipts of State taxes and monopolies. — 27 —
ARTERLY BUDGET ACCOUNTS (continued).
First half-year 1932 1931 1932 1932 1931 Half of Originally Supplemen EXPENDITURE voted voted tary Closed (including investments) stimates Revised Provisional estim ates accounts estim ates2 results estim ates thillings A. Administration: 41-35 42.42 50.37 82.70 80.56 101.33 Army 3.00 2-59 3-43 6.00 530 6.46 Foreign Affairs 24.99 24.69 28.35 49-99 49-35 56.58 Justice 2.51 2.3I 2.74 5.02 4.80 5-39 Supreme organs 3-47 4-30 3-93 6-93 10.67 8.01 Chancellor’s office 47.88 46.76 53-55 95-76 9376 104.77 Interior 208.46 229.32 209.96 416.91 481.28 411.86 Social Administration 22.10 18.06 51.07 44.20 35-60 128.17 Agriculture 34-47 30.68 4571 68.94 60.69 99-44 Commerce and Traffic 38.02 36.84 45.85 76.03 74-r 4 88.19 Education, Science, Church 32.26 32.09 152.78 6453 69.00 231.30 Finance Subsidies to Postal Savings 1.50 1.50 2.58 3.00 3.00 4.60 Bank 13.10 12-73 13.50 26.20 25.88 28.78 Payment to local authorities 103.23 105-95 114-47 206.46 209.00 222.90 Pensions Charges under the Peace 1.20 0.72 4.10 2.40 2.18 4.67 Treaty 103 39 93-02 84.15 206.78 193.21 208.29 Debt Service
680. 93 683.98 866.54 1,361.85 1,397-92 1,710.83 Total: Administration
B. Monopolies: 66.26 61.00 86.70 132.52 127.01 166.10 Tobacco 7.60 7-38 8-55 15.20 15.12 17-50 Salt 20.26 23.58 21.63 40.52 42.31 41-03 Lotteries 3-24 2-57 3.19 6.48 5-39 5-97 Gunpowder
97-36 94-53 120.07 I 94-72 189.83 230.60 Total: Monopolies
C. Federal Undertakings : 118.50 115.96 144.22 237.00 228.50 284.79 Posts and Telegraphs 9.91 9.48 11.05 19.81 19.60 22.06 Forests 5-69 5.83 7.38 11.39 H -33 13-33 Federal Theatres 9-03 8.41 10.50 18.05 17.60 20.89 Other Undertakings
r43-i3 139.68 173.15 286.25 277.03 341-07 Total: Undertakings
D. Railways: 20.20 3705 11.85 40.39 82.94 29.18 Federal Railways Charges under the Siidbahn 4-77 4.76 965 9-65 9.72 Convention 4-43 5.15 6.85 6.69 9.26 Other Railways 46.25 21.76 56.89 99.28 48.16 Total: Railways
964.44 1,181.52 1,899.71 1,964.06 2,330.66 Total Expenditure
939-74 96544 2,002.06 1,964.11 2,008.52 Total Receipts 102.35 0.05 Surplus 24.70 216.08 322.14 Deficit
50.003 — 16.79 +216.74 —100.00 3 — + 5-62 Current Account Balance
x.17 — 41.49 — 0.66 + 2-35 + 0.05 —316.52 Total Balance
XheV)S'0na! «suits January-April for all receipts and for May receipts of State taxes and monopolies. Account00 !®*^*011 ^°n Schillings^c^’**'n8s for the reduction of the floating debt have been charged to the Current Account, thereby relieving the though not affecting the Total Balance. Appendix III.
REVISED MONTHLY ESTIMATES.
April May June July 1932 One-twelfth RECEIPTS 1932 1932 1932 of I 9 3 I 1931 1931 1932 I 9 3 1 estim ates Provisional Provisional Provisional Provisional Provisional Provisional Estim ates Estim ates Estim ates Estim ates results results results results results results (In millions of Schillings) A. Administration: Direct t a x e s ...... 3°-4 i 30.40 28.36 31.87 30.00 28.05 28.80 27.00 24-15 27.00 3139 Import duties ...... 21.17 19.00 20.94 18.70 20.00 18.27 18.78 19.00 21.12 18.00 28.39 E xport d u t i e s ...... 0.02 0.02 0.02 0.04 0.02 0.01 0.02 0.01 0.02 0.01 0.02 Transitional duties on wheat, etc...... ————————— — 1.65 Excise du ties...... 14.11 13.10 1352 11.99 1332 12.89 16.94 I 3 ° 5 16.62 1376 1725 Turnover t a x ...... 16.50 16.30 15.10 17.28 14.70 14-32 17-38 14.80 17-83 1450 19.22 Taxes on transactions, legal fees, e tc...... 9.92 10.70 11.46 11.88 9 3 ° 8.61 10.23 9.20 9.69 10.50 12.35 Accessory r e c e i p t s ...... 0.12 0.12 0.16 0.12 0.12 0.16 0.14 0.12 0.13 0.12 0.14
Total t a x e s ...... 92.25 89.64 89.56 91.88 87.46 82.31 92.29 83.18 89.56 83.89 110.41 Deduct : Shares of local a u th o ritie s ...... 20.28 19.16 19.11 17-65 16.91 16.84 18.49 18.15 20.64 16.88 19.80
T otal: State ta x a tio n ...... 71.97 70.48 7°-45 74.23 7°-55 65-47 73.80 65-03 68.92 67.01 90.61 jr.
Receipts of Social A dm inistration...... 20.01 19-35 19.14 16.21 19.28 16.72 18.95 I 5-70 19.84 17.11 O ther adm inistrative receipts...... 6.00 4.18 4.27 4.67 5.01 6.13 3-73 5-93 10.12 8.71 Contribution tow ards D ebt S e rv ic e ...... 8.72 3.10 3 ° 5 3-13 4-39 2.41 31-25 33-64 4.27 3-54
T otal Receipts of the A d m in is tra tio n ...... 106.70 97.11 96.91 98.24 99-23 99.06 118.96 124.19 101.24 119.97
B. Monopolies : T o b a c c o ...... 29 33 26.65 25-99 25-75 28.11 28.85 28.74 28.58 41-65 30.64 29.04 S a lt...... 2.47 2.20 1-57 2-43 2.25 3-03 2.29 2.22 2-75 2.36 2.50 Lotteries and g u n p o w d e r ...... 5-42 6.26 6.15 6.28 2-53 2-37 2.47 10.II 5-96 5-84 9-79
T otal: M o n o p o lie s...... 37-22 35-11 33-71 34-46 32.89 34-25 3350 40.91 50.36 38.84 41-33 & C. Public Undertakings : Posts and T ele g rap h s...... 19-79 16.98 16.51 I6.76 17.12 1589 18.47 18.85 20.66 31.96 F o r e s t s ...... 1.03 0.70 0.87 I.O4 0-75 1.07 0-75 I.OO 0.75 1.44 Federal t h e a t r e s ...... 0-59 0.64 0-55 0.70 0.52 0.52 0-43 O.46 O.II 0.97 O th e r...... 1-50 1.46 1.46 I.93 1.58 1.83 1.40 1.98 1.49 1.08
Total: Public Undertakings...... 22.91 19.78 19.39 20.43 19.97 1931 21.05 22.29 23.01 35-45
D. Railways : Federal R a ilw a y s...... ——— - — —— ---- — — Other railways...... — —— — — 0.02 — --- — 0.03
Total: Railways ...... — — — — 0.02 — — — 003 Totcil R eceipts ...... 166.83 152.00 150.01 *5 3 -1 3 152.09 1 51.89 18092 19684 163.09 I96.78 kEVTSED MOTVTfiLY ESTIMATES (CntXFfH1le*r7 J.
A p r i l M a y J u n e j J u l y 1 9 3 2 E X P E N D I T URE One-twelfth 1 9 3 2 1 9 3 1 1932 193* 1 9 3 2 193 1 1 9 3 2 1 9 3 1 (including investments) o f estim ates Provisional Provisional Provisional Provisional Provisional Provisional Estim ates Estim ates Estim ates Estim ates results results results results results results
A . z/ dministration : (In millions of Schilliiig s) A r m y ...... 6 .8 9 7 .2 0 7-18 8 .1 9 6 .8 7 8.81 6 .7 4 8 .9 4 6.52 8.37 F o r e i g n A f f a i r s ...... 0 .5 0 0-43 0 .4 2 o -55 o -43 — 0 .5 9 0 .4 2 0 .5 7 0-43 0 .5 6 — J u s t i c e ...... 4-17 4 .1 6 4 .0 9 4 .6 4 3-92 4 .2 8 4-33 5 .5 8 4-17 4 6 5 S u p r e m e o r g a n s ...... 0 .4 2 0 .3 8 0 .3 8 O.4I 0 .3 8 — °-43 0-37 0 .5 1 0 .6 8 0 .7 4 Chancellor's o ffic e ...... 0 .5 8 0-57 0 .5 6 0 .6 2 0 .5 4 — 0 .6 7 0 .5 6 0 .6 9 0 .5 6 0 .6 8 I n t e r i o r ...... 7 .98 7-79 7-69 8.72 7 6 3 — 8 .4 0 7 .87 10.41 7.82 8 .8 9 S o c i a l A d m i n i s t r a t i o n ...... 34-74 37-87 39.84 34-i8 33-79 — 3 0 .6 4 3 1 -8 3 2 7 .6 9 33-7 1 2 8 .9 4 A g r i c u l t u r e ...... 3.6 8 3 .2 0 3-17 8 .6 0 3-15 — 8.93 3-04 9 .3 6 3.01 9 3 4 C o m m e r c e a n d T r a f f i c ...... 5-75 5-42 4 .87 7.42 5-84 — 7.62 5-96 9.82 6 .0 6 10.88 E d u c a t i o n , S c i e n c e , C h u r c h ...... 6-34 6 .I 4 6 .I 4 7-44 6 .17 — 7-37 6.20 8.70 6.18 7 .40 F i n a n c e ...... 5-38 5 4 I 5 .1 6 9.21 5-03 — 50-57 5 .44 6 8 .9 4 7-37 11.51 S u b s i d i e s t o P o s t a l S a v i n g s B a n k ...... 0.25 0.25 0.25 0.40 0 .25 — 0.40 0.25 0.40 0.25 0 .4 0 P a y m e n t t o l o c a l a u t h o r i t i e s ...... 2.1 8 2.1 I 2 .II 2 .24 2 .05 — 2.22 2.41 2.40 2.36 2.21 P e n s i o n s ...... 17 .2 0 17-58 17-53 18.08 17.61 — 1995 17.62 2 1 .8 4 1 7 -5 6 18.1 8 C h a r g e s u n d e r t h e P e a c e T r e a t y ...... 0 .2 0 0 .0 9 O.O7 0 .1 8 0 .0 9 — 0 .0 6 0 .47 0 .3 7 0 .0 9 0 .13 D e b t S e r v i c e ...... 17-23 1 3.80 I 4 .IO 3 4 6 1 2 .3 9 — i -34 16.51 3 5 6 7 2 2 .4 3 2 2 .8 9
T o t a l : A d m i n i s t r a t i o n ...... 113-49 11 2 .4 0 1 1 3 -5 6 114-34 106.14 — 152.28 110.02 2 1 1 .8 9 1 1 9 .2 0 135.77
B. Monopolies : T o b a c c o ...... 11.04 9-73 9.05 M.55 10.68 11.26 13-87 n -55 17.18 11.81 14.4 0 S a l t ...... 1.27 I-3° 1.21 1.36 1 .26 1.23 I-3 I 1.26 1.38 1.30 1.40 L o t t e r i e s ...... 3 -38 8.31 8 .4 9 12.42 i -53 1.38 0.82 2.66 1.12 1.97 2 .5 0 G u n p o w d e r ...... 0-54 0 .4 6 O.46 0 .52 0 .4 6 0.39 0-53 0-45 0 .7 5 0 .4 6 0 .52
T o t a l : M o n o p o l i e s ...... 16.23 19.80 19.21 2 8 .8 5 13-93 14.26 16.53 15-92 2 0 .43 1 5 .5 4 18.82
C. Undertakings : P o s t s a n d T e l e g r a p h s ...... 19-75 19.63 19.48 2 2 .82 18.34 2 2 .3 0 2 0 .0 7 3 1 -7 1 2 0 .0 6 2 4 .0 6 1.84 F o r e s t s ...... 1.64 1.64 1-45 1.70 1.68 — 1.85 1-65 1.94 1.64 — F e d e r a l t h e a t r e s ...... 0.95 1 .01 0 .9 8 0.54 0.97 1.18 0.95 1.15 0.85 0 .9 7 O t h e r u n d e r t a k i n g s ...... I-5 I 1.41 1.46 2 .28 1-34 — 1.81 1.41 0 .8 9 1-54 2 .00
2 4 .0 9 2 8 .87 T o t a l : U n d e r t a k i n g s ...... 23-85 2 3 .6 9 2 3 3 7 27-34 2 2 .3 3 — 2 7 .1 4 2 4 .0 8 3 5 .6 9
D. Federal Railways : O.87 F e d e r a l R a i l w a y s ...... 3-37 I.O7 i .07 0-33 I.O8 ° 3 3 3-04 0 .5 9 0 3 3 C h a r g e s u n d e r t h e S ü d b a h n C o n v e n t i o n ...... 0 .8 0 ---- — ---- —— 2-39 2 .3 8 0 .02 — 0 .8 4 O t h e r r a i l w a y s ...... o -57 0 .6 9 0 .6 9 o -75 O.64 — 0 .7 6 0 .4 7 1.25 O.38
T o t a l : R a i l w a y s ...... 4-74 I .7 6 1.76 1.08 1.72 — 1.09 6 .9 0 4.22 1.27 1.17
,— l 6 0 . I 0 18 4 .6 3 Total Expenditure...... 1 5 8 .3 1 157-65 157-90 171.61 I 4 4 .I 2 19 7 .0 4 156.42 272.23 163.O9 196.78 Total Receipts...... 166.23 15 2 .0 0 150.01 153-13 I52.O 9 — 15 1 .8 9 180.92 196.84
S u r p l u s ...... 8.52 _ 7-97 —— 2 4 - 5 0 — 2.99 12.15 ------D e f i c i t ...... — 5-65 7 .8 9 18.48 —— 45-15 — 75-39 — — Current Account B alance ...... — 8.33 — 7-98 + 2 .6 9 + 15-18 — 9-97 — 4- 58 .8 3 — 3 0 8 3 + 145-99 2.99 + 1 .71
0 .0 0 T o t a l B a l a n c e ...... + o . i 9 — 13-63 — 5 . 2 ° — 3 -3° — 2 .0 0 — 4- 1 3 6 8 — 6.33 4- 7 0 .6 0 4- 1386 Appendix IV.
REVENUE PLEDGED FOR THE 1923-1943 GUARANTEED LOAN.
(Receipts of the Customs and the Tobacco Monopoly: Actual results in millions of Schillings.)
1931 1932
Tobacco Customs Total Tobacco Customs Total
January ...... 2 3 4 1 23-45 46.86 24.71 24.89 49.60 February ...... 20.08 18.53 3 8 .6 1 2 4 1 3 19.50 4363 M a rc h ...... 22.56 17.96 40.52 17.68 28.50 46.18 A pril...... 22-55 19.20 41-75 18.70 25-75 44-45 M a y ...... 25-34 18.60 43-94 25.99 20.94 46.93 Ju n e...... 32.36 21.48 5384 2 3 6 3 18.51 42.14 Total for first half-year J u ly ...... 24.36 27.09 5145 A ugust...... 2533 23.00 4833 S e p tem b e r...... 26.39 22.63 49.92 I 34-84 138.09 272.93 October ...... 27.3I 25.88 53.19 1931 N o v e m b e r...... 24.05 26.52 50.57 146.30 119.22 265.52 D e c e m b e r...... 27.19 25.58 52.77
Total .... 300.93 269.92 570.85 352.OO 241.50 593-50 (Estimates)
Appendix V.
TREASURY POSITION, 1928-1931.
Receipts. 1928 1929 1930 1931 Balance at the beginning of the year: (Millions of Schillings) (a) Central Treasury ...... 175-8 102.2 81.9 i i g -5 (b) Other Treasuries (practically not available) 65-9 64.4 66.1 68.1 (c) Specially earmarked...... 180.9 IOO.4 I5 8 .I 182.2
T o t a l ...... 422.6 267.O 306.1 369.8
Balance of budgetary account...... 130.8 167.I - --- Balance of investment account...... —— ------Balance of loan acco u n t...... —— 395-6 199.4 Balance of current account...... — I9.4 5-6
Grand total ...... 553-4 453-5 701.7 574-8
Expenditure. Balance of budgetary a c c o u n t...... 12.8 224.4 Balance of investment account...... 211.7 147-4 248.4 98.3 Balance of current account ...... 74-7 70.7 Balance at the end of the year: (a) Central T re a s u ry ...... 102.2 81.9 II 9-5 42.9 (b) Other Treasuries (practically not available) 64.4 66.1 68.1 61.8 (c) Specially earmarked...... 100.4 158.1 182.2 147-4
T o t a l ...... 267.0 306.1 369.8 252.1
Grand total...... 553.4 453.5 701.7 574-8 Appendix VI (a).
MONTHLY TRAFFIC RECEIPTS OF THE FEDERAL RAILWAYS.
(In millions of Schillings.)
January February March April May June
Esti- Actual receipts Esti Actual receipts Esti Actual receipts Esti Actual receipts Esti Actual receipts Esti Actual receipts mates mates mates mates mates 1932 1932 1932 1932 1932 1932 1932 1931 1932 I931 1932 I931 1932 1931 1932 1931 1932 1931
Passengers and luggage II.I II .3 12.14 IO.7 10.6 II -3 18.O 14.0 13.8 I I . 8 II. 6 15.2 16.4 15-5 17.8 17.I 15-5 18.7
Goods ...... 24-5 21.3 25.76 23.6 21.8 23-9 27.7 23.O 28.3 21.4 21.1 25.8 22.5 20.9 27.I 235 22.1 28.3
Total .... 35-6 32.6 37-90 34-3 32-4 35-2 45-7 37-0 42.1 33-2 32.7 41.0 38.9 36.4 44.9 40.6 37-6 47.0
January - June 1932 1931 1932
Difference % Difference % Initial estimates Estimates 1 Actual results Difference % Actual results Cols. 2 and 4 Cols. 2 and 6
— 12.15 — 18.62 Passengers and luggage . . 8 l . I 78.O — 3-77 88.9 95-9
Goods ...... 1 3 3 6 130.0 — 2.71 159-3 — 18.42 159-3 — 18.41
T o ta l...... 214.7 208.0 — 3 1 1 248.2 — l 6 . l 8 255-2 — 18.49
1 New estimates made in May 1932, taking into consideration the trend of receipts during the first quarter of the year. — 32 —
Appendix VI (b).
AUSTRIAN FEDERAL RAILWAYS : PROVISIONAL RESULTS FOR 1931 AND ESTIMATES FOR 1932.
Closed Supplementary Estim ates accounts estimates 2 19321 1931 1932
In millions of Schillings
Operating expenditure...... 558.7 509.19 494-5 Operating receipts, excluding railway traffic t a x ...... 5 1 5 8 5 5 6 .4 ° 453-1
Ojjerating su rp lu s...... — 47.21 — Operating d e f i c it ...... 42.9 — 41.4
Operating expenditure : Salaries...... 308.0 2 5 4 2 7 245.7 Pensions and social charges .... 124.8 1 1 5 .8 5 120.0 F u e l...... 36.O 30.9° 28.8 Sundry material expenditure .... 63.2 7 2 5 3 62.8 General expenditure...... 26.7 3564 37-2
T otal...... 558.7 50919 494-5 Profit and loss account : Operating surplus...... — 47.21 — Operating deficit ...... 42.9 — 41.4 Subsidiary concerns ; Balance .... + 0-5 — 0.20 — 0.2 Debt s e rv ic e ...... 63-5 72.00 75-0 Total d e f i c i t ...... IO5.9 24.99 116.6 Railway traffic tax ceded by Federal Authorities...... 22.8 25.10 19.7
Profit ...... O.II L o s s ...... 83.1 96.9
1 Original estimates as modified by the Federal Railways Budget Reorganisation Law, January 7th, 1932. 3 August 1932. — 3 3 -
Appendix VII.
SITUATION OF THE AUSTRIAN PUBLIC DEBT.
On December 31st
1930 1931
(In millions of Schillings)
I. Funded Debt: Debt to the National Bank...... IOI.2 95-6 Domestic D e b t ...... 35-6 35-7 Reconstruction L o a n ...... 872.6 708.9 International Loan, 1930...... 439-- 396.4 Other funded foreign d e b t ...... 6437 570.8 T o t a l ...... 2,092.1 1,807.4
December June Septem ber December 1930 I 9 3 I 1931 1931 2
(In millions of Schillings)
2. Floating debt : Collateral loans at Post Office Savings B ank ...... — 2 5 - 25.- 2 5 .- Treasury bills issued to Post Office Savings Bank . . — 4 5 - 45.- 45-- 1 Treasury bills issued to Viennese Banks .... — ■ 50.- 29.8 29.8 Bank of England advance . — I 49-7 149-7 99.6
T o ta l...... — 269.7 249-5 I 99-4
1 In May 1932, the Central Savings Bank of the municipality of Vienna held 15.— of these bills. 2 No change since. — 3 4 —
Appendix VIII.
CLOSED ACCOUNTS OF THE LÂNDER AND MUNICIPALITIES FOR THE YEARS 1930-1931.
(In millions of Schillings.)
L ander Municipalities without Vienna without Vienna
1931 1 9 3 0 1931 1930
Total receipts, excluding loans . . . 3057 3093 158.6 173-3 Expenditure : Interest ...... 13.6 10.4 23.0 18.3 A m o rtis a tio n ...... 8.1 6.4 15.0 15.6 Other ex p en d itu re...... 300.1 3295 148.5 184.5
Total expenditure . . 321.8 346.3 186.5 218.4 S u rp lu s...... —— --- — D e f ic i t ...... 16.1 37-o 27.9 45-1
Loan receipts ...... 28.9 10.7 34-9 39-6
DEBT SITUATION OF THE LÀNDER AND MUNICIPALITIES AT TH E END OF 1931.
(In millions of Schillings.)
L ander Municipalities without Vienna without Vienna
Domestic Foreign Domestic Foreign
Funded D ebt ...... 17-3 130.5 14-5 67.2 Un Long-term, over 10 years . 37-3 3-2 1533 20.3 funded • Medium-term, 2-10 years . 11.2 3-9 30.6 0.6 Debt Short-term, under 2 years . 14.8 1-4 37-5 0-5 Administrative liabilities ...... 30.6 14.4
T o ta l...... h i .2 139- 250.3 88.6 Administrative claim s ...... 28.3 10.6 Appendix IX. AUSTRIAN NATIONAL BANK.
E nd of
First Second Third F ourth First April May June "j quarter quarter quarter quarter quarter
Mil lions of Schill ngs 977.6 1,110.5 I,III.- 1932 I,008.6 999.1 961.8 Note circulation...... I 93I I , l 83.3 994-7 1930 979-9 1,028.2 1,007.7 1,090.1 1931 977-6 984.4 1,140.6 1,110.5
66.4 180.4 128.1 1932 128.4 h i .7 149.2 Sight liabilities ...... I 93I 74-4 II 3-3 1930 26.1 60.4 103-3 92.7 1931 66.4 64.1 142.2 180.4
214.4 189.5 189.5 1932 179.4 164.4 149-5 G o l d ...... 1931 214-3 1794 1930 168.6 168.5 214.6 214.4 1931 214.4 214-3 214-3 214-3 138.6 102.3 1932 60.2 42.6 Cover exchange...... I 93I 1 3 3 - II 4-7 35-4 33-4 1930 221.1 266.3 217.6 197.6 1931 138.6 138.4 116.5 133-0
499.1 87.4 1932 0.1 0.1 0.1 0.1 Other foreign assets . . . I 93I 311-3 257 1930 336.3 421.- 478.5 517-9 1931 499-1 507-3 401.4 3II -3
92.1 528.7 688.5 907.8 1932 867.2 863.1 873.9 880.9 Bills discounted...... I 93I 1930 165.7 124.8 95-5 148.- 1931 92.1 89.2 451-3 528.7 0.6 26.- 1932 26.7 26.7 28.2 28.7 Advances on securities . . I 93I 5.4 7-7 1930 0.4 0.4 0.5 I- 1931 0.6 0.6 0.6 5-4
96.1 96.1 95-6 95-6 1932 95-6 95-6 95-1 93-o Government debt .... I 93I 1930 108.5 101.5 101.3 101.2 1931 96.1 96.1 96.1 96.1
I 93I 5 6 (June 8) 10 8 1932 7 7 7 7 71/ 2 (June 16) (July 23) (November^) (March 18) Discount rate (percentage). 6 (June 8) 1930 6 from 5 % 5 5 1931 5 5 5 6 y2 (May 23) (September 7 Vi (June 16) (March 21) 10)
Note circulation in excess of statu- 1932 43-1 121.8 186.9 217.6 tory limit liable to taxation —— — — A p p e n d i x X. — BALANCE-SHEETS OF THE PRINCIPAL VIENNESE BANKS.
N iederôsterreichische Lànder-Bank Creditanstalt Wiener Bankverein Merkur-Bank Escompte-Gesellschaft (Vienna Branch) 1913 I 1925 1 | 1930 1 19 3 1 1913 I 1925 1 | 1930 | 1931 1913 | 1925 1 I 1930 | 1931 19:3 I 1925 1 | 1930 1931 1925 1 | 1930 | 1931 B a l a n c e -S h e e t Million s of Schillings Assets C a s h ...... 4 4 .4 2 6 .6 6 2 9 .1 3 4 1 .8 4 8 .7 6 18.1 7 1 1 .5 6 11.04 13-84 2 1 .6 4 12.75 9 .8 7 5-43 8 .15 4 .2 6 25.61 2 7 .1 7 37-19 D isc o u n ts...... 2 9 I.4 O 2 5 .1 2 9 1 .7 9 3 M -75 35-11 83.93 44.81 95-94 1 9 2 3 6 6 .6 5 5 2 .4 0 5 0 .2 2 8 .63 18.9 7 IO .97 20.35 6 5 .1 6 6 1 .— Investments...... 6 7 .IO 35-68 70.7 1 4 0 .9 3 4 .1 0 9.52 10.33 54-12 5-29 1 0 .30 6 .4 8 12.5 0 2-55 0 .3 6 °-34 1.38 10.42 6.01 Participations...... 1 2 2 .1 0 2 6 .3 4 10 2 .5 5 8 2 .6 4 2 5 .8 6 4 6 .1 2 54-51 29.17 2 9 .5 8 73-17 38.51 1 3 .0 9 8 .7 4 6 .8 2 4 .7 0 1 2 .5 6 3 2 .7 4 31-4' D e b to rs ...... 1 ,1 5 8 .6 5 3 7 0 .2 1 1 ,3 8 2 .1 5 815.74 2 0 7 .2 6 3 4 6 .6 1 2 8 5 .9 7 430-56 235-52 408.37 351.75 3 0 7 .9 6 8 6 .4 3 1 0 0 .7 0 57-87 8 0 .1 5 1 9 1 .6 9 1 4 7 .7 0 Real Estate, premises and fittings I 7 .2 I 8-4 2 2 .3 9 2 6 .8 4 10.— 7.68 7 .6 0 1.79 4.96 3 .0 0 3 .0 0 2 .4 Sundry Assets ...... 18 5 .8 3 2 0 .4 6 8 .9 9 0 .0 4 O.II 0 .12
Liabilities Share C apital ...... 2 l 6 . ---- 5 0 .0 0 i 77-5o 1 8 7 .2 0 4 0 .— 55-— 45 — 1 0 8 .0 0 0 .1 3 5 4 .0 0 5 4 .0 0 1 2 .0 0 7 2 .0 0 2 0 .0 0 1 5.0 0 R eserves...... 134.81 2 0 .0 0 6 2 .1 6 2 0 .— 27-53 5 .0 0 3641 21-45 42.31 42.31 3 1 .6 8 4 .0 0 4-75 1 .00 Bills and acceptances...... 7 2 .6 0 1-57 i -45 1 2 0 .5 6 1.71 0 .0 3 0 .0 3 58.97 12.41 0.95 0 .0 9 0 .02 0 .6 0 0.43 0-35 D eposits...... 1 1 5 .7 6 1 9.6 2 3 1 6 .2 8 1 9 1 .8 8 11.61 8 0 .0 3 49-93 34-45 8-73 6415 5 1-64 6 1 .8 3 8-33 2 3 .0 2 11.32 17-47 9 8 .7 3 1 05.92 C r e d ito r s ...... 1 ,1 2 8 .5 6 3 8 0 .8 8 1 ,3 5 8 .8 7 7 4 1 .0 8 2 1 6 .9 5 3 6 6 .2 4 3 1 3 9 7 3 6 6 .4 4 2 7 2 .9 3 4 1 2 .7 6 3 3 9 .9 8 2 0 7 .2 5 8 9.5 2 8 8 .9 8 53-02 1 21.85 22 7 .3 1 1 7 6 .9 9 Unclaimed dividends...... 0 .0 2 035 0 .1 2 0 .0 2 0.32 0 .2 0 0 .2 2 0 .0 2 0 .0 5 0 .0 5 Sundry liabilities...... 30-33 0 .5 0 0 .5 0 0 .5 0 2 .6 4 1.18 0 .0 5 0 .0 5 13.2 8 0 .1 7 Carry forward from previous year 3 -36 0 .8 6 0 .21 0-39 0 .3 6 0 .7 8 0 .7 8 0 .0 9 Balance of Profit-and-Loss Ac count ...... 2 9 .7 8 19.01 2-73 0 .1 3 15-32 6-45 3.S 6 8 .3 6 1.07 0 .1 9 0 .8 2 0 .1 7
Balance-Sheet total . . 1,700.89 472.41 1,884.56 1 ,3 2 2 .7 4 2 9 1 .0 9 532.48 414.78 622.63 342-87 5 8 0 .1 3 4 9 1 .8 8 407-59 1 1 4 .7 9 1 3 8 .0 0 8 0 .5 5 140.09 327.29 2 8 3 .4 3
Profit-and-Loss Account Dr. Charges and amortisation . . . 5 .0 6 2 .7 8 4 .9 6 5-97 3-69 3-43 315 0 .5 0 0 .9 8 1 .36 1.49 1.90 0 .7 8 0 .6 0 0 .4 7 2 .1 0 1-43 i -44 Salaries and pensions...... 1 0.6 3 16.4 3 3 1 -82 1 1 .2 8 1 7.6 7 13.0 8 1 1 .68 J 501 J 2 .8 3 4-73 2 .6 8 2 .5 0 7 .8 6 6 .9 8 8.92 I 3 .0 6 5-32 | 5-93 Social Charges (pension fund) . 0 .5 9 1 .67 0-57 1.22 2 .4 0 2 .4 4 1 0-94 ) 0 .2 9 0.32 0 .9 0 0.97 1.30 1.76 T a x e s ...... 6 .6 7 3-99 7-56 4 .0 9 4-03 3-28 2.14 2 .8 8 4-53 3-43 3 6 5 1.79 2 .0 0 0 .7 0 0.51 1.87 1.85 1.96
L o s s ...... — — 15 9 .0 2 ———— — — —
Cr. I n te r e s t...... 3 6 .6 8 12.2 2 4 0 .2 5 25-54 12.1 3 1 3 .1 6 12.51 14.42 7 .6 0 7-53 6-57 8 .7 4 3-7° 3.04 2 .6 4 5 .0 8 6 .2 6 6 .3 0 C o m m issio n ...... 1 0 .9 4 14-74 1 8 .8 0 9-53 1 2 .9 0 8 .0 0 6.39 3-68 7-65 7.87 7-44 3 .4 2 4 .2 4 2 .6 2 1.70 5-07 4 0 3 3-89 Profit on exchange, securities and p a rtic ip a tio n s...... 511 4 .4 6 4 .2 0 5-84 6 .0 8 3-69 2-53 3 .6 6 1-74 1-79 0 .1 6 2 .9 9 1.61 0 .3 0 0 .0 2 3 .2 8 2-55 2.31
Net Profit .... 33-14 6 .5 6 1 9 .8 6 4-49 2-94 1.02 15-72 6 .1 6 6.81 3 09 9 .1 4 1 .71 1.16 0.09 0.30 0.82 0 .1 7 Covering of L o s s ...... 1 3 9 .6 2
Distribution of Profits. D iv id e n d s...... 2 2 .9 5 5 -0 0 1 4 .9 8 3 .6 0 2-75 i i -34 4-69 5-67 6 .4 8 1.50 1.00 --- R eserves...... 3 .6 0 0.97 — 2.97 0.31 1.08 0 .0 6 Social charges (pension fund) . 1 .44 0-55 0 .5 8 0 .5 0 0 .5 0 0 .1 4 Directors’ fees ...... 1-75 0 .4 8 2 .4 6 0 .2 7 0.94 0 .3 5 0 .3 8 0 .4 8 O.II Carry forward. .... 3-4 0 .8 9 0 .1 2 O.46 O.76 3 .8 6 0 .1 0 0 .1 0 Dividend °/0 10 ’•/„ 0 .9 5 = 8.--- 10 % 10 V-i 9 5 Weight Trade by Classes of the International Classification I m p o r t s E x p o r t s I m p o r t s E x p o r t s Excess Im ports (Brussels, 1 9 1 3 ). 1932 1931 1932 I93I 1932 I 931 1932 1931 1932 I93I
First Quarter : Live anim als ...... 23.23 37-53 1 .46 2 .5 2 26.1 4 2 .2 2 .0 4.2 24.1 3 8 .0 Articles of food and d rin k ...... 2 9 0 .4 2 31382 7 .4 8 H -75 8 7 .0 11 4 .7 4.1 12-5 8 2 .9 102.2 Materials, raw or partly manufactured 1 ,1 9 0 .8 5 1 ,4 1 1 .6 9 297.10 4 5 ° . 18 128.1 167 .9 39-7 66.8 8 8 .4 IOI.I Finished g o o d s ...... 4 4 .0 9 54 46 61.95 83 45 149 .6 196 .2 142.3 232 .1 7-3 3 6 .0 1 Gold and silver ...... 0.01 0 .0 2 0 .0 8 0 .0 9 3-8 7-9 5-6 4-9 1.81 3-o
Total t r a d e ...... 1 ,5 4 8 .6 0 1 ,8 1 7 .4 8 3 6 8 .0 7 547-99 394-6 5 2 8 .9 193-7 3 2 0 .6 2 0 0 .9 2 0 8 .3
A pril : Live anim als ...... 6-55 H -93 0 .6 0 1.03 6.9 1 2 .6 0.7 1.8 6.2 10.8 Articles of food and drink ...... 9 6 .4 4 12 6 .2 5 3 .2 2 2 .6 2 3 1 .8 45-0 i -5 2.9 3 0 .3 42.1 Materials, raw or partly manufactured 3 6 6 .3 0 455-27 1 2 3 .3 9 1 9 3 .5 6 4 1 .4 5 8 .4 14.4 2 6 .4 2 7 .0 3 2 .0 Finished goods...... 17.0 2 2 6 .3 0 23.9 1 3 1 .2 0 44-4 74-1 49-8 90.1 5 . 4 1 16 .0 1 Gold and s i l v e r ...... 0.01 1.0 2 .4 1.2 1.6 0.2 1 0.8
Total trad e ...... 4 8 6 .3 1 6 1 9 .7 5 151-12 2 2 8 .4 2 125-5 192.5 6 7 .6 122.8 57-9 6 9 .7
M ay : Live a n i m a l s ...... 8 .2 6 1 1 .2 6 0 .8 5 1.02 10 .o 11.4 1.0 1.8 9 .0 9-6 00 Articles of food and d rin k ...... 1 0 1 .1 9 149.37 1-95 2 .2 9 30.3 5 0 .5 1.2 2-9 29.1 4 7 .6 Materials, raw or partly manufactured 350.47 4 3 0 .6 1 138.71 19 8 .0 4 3 5 5 52.9 14-5 2 6 .6 21.0 2 6 .3 Finished goods...... 15-62 2 7 .8 8 2 3 .2 8 3 2 0 3 43-2 74-2 45-6 84-5 2 .4 1 10.31 Gold and s i l v e r ...... 0.01 0 .0 9 0 .0 2 2.0 2-5 2.7 2.2 0 .7 1 0-3
Total trad e ...... 475-54 6 1 9 .1 3 1 6 4 .8 8 233-40 1 2 1 .o 191-5 6 5 .0 Il8.0 5 6 .0 73-5
June : Live a n i m a l s ...... 7.62 14.13 0 .5 0 1-45 9-3 14.8 0 .6 2-3 8.7 12.5 Articles of food and drink ...... I27.78 13 0 .6 7 1-95 2 .2 3 37-3 504 i -5 2.9 35-8 47-5 Materials, raw or partly manufactured 395-88 4 2 4 .5 3 155-39 2 1 1 .1 9 37-4 45-7 15.6 25-3 2 1 .8 2 0 .4 Finished goods...... 1394 3 0 .8 9 25-17 33-30 3 2 .4 7 6 .4 43-9 82.5 ii- 5 l 6 .1 1 Gold and s i l v e r ...... 0 .0 3 0 .0 2 1.6 9-7 3-1 2-4 1-5 1 7-3
Total t r a d e ...... 545-22 6 0 0 .2 5 1 83.01 2 4 8 .1 9 118.o 197-0 6 4 .7 1154 53-3 8 1 .6
First Half-Year : Live a n i m a l s ...... 4567 7 4 .8 5 3-33 6 .0 2 52.2 8 1 .0 4.2 10.2 4 8 .0 7 0 .8 Articles of food and d rin k ...... 6 1 1 .5 2 7 2 0 .1 1 1 4 .6 0 1 8 .89 186.5 2 6 0 .5 8-3 20.0 178.2 2 4 0 .5 Materials, raw or partly manufactured 2 ,3 0 3 .4 0 2 ,7 2 2 .1 9 7 1 5 .6 0 1,0 5 3 .8 2 2 4 2 .2 323-2 83.2 I 4°-4 159.0 182 .8 Finished goods...... 9 0 .6 4 139.53 134-30 1 8 0 .0 9 2 6 9 .2 4 1 8 .9 2 8 1 .6 4 8 8 .5 1 2 . 4 1 6 9 . 6 1 Gold and s i l v e r ...... 0 .0 2 0 .0 7 0 .1 7 0 .1 7 8-5 2 2 .5 12.7 11.1 4 .2 1 II.4
Total t r a d e ...... 3.05i -25 3 ,6 5 6 .7 5 8 6 8 .0 0 1 ,2 5 8 .9 9 758.6 1,106.1 3 9 0 .0 6 7 0 .2 3 6 8 .6 435-9 Weight Value 1932 1932 1931 First half-year : 1931 Im ports of coal, coke, etc., included under m aterials, raw or partly m anufactured. 1,967.1 2, IO2.36 69.2 793
1 Excess of exports <>v«r imports. - 3 8 -
Appendix XII.
ECONOMIC INDICES.
End of date given
F irst Second T hird F o u rth F irst April May June quarter quarter quarter quarter quarter
Index of industrial production (1923- I 93I 90-5 83.8 90.6 92.2 1932 85.2 85.6 754 1931 = 100) (season 1930 average for year 103.05 I 93I 9°-5 96.1 88.2 83.8 ally corrected) Output of coal (1,000 I 93I 20.2 17.1 20.1 20.1 1932 20.3 19.8 18.1 to n s )...... 1930 16.2 14-5 20.6 19.4 I 93I 20.2 17.9 16.9 17.1 Output of lignite I 93I 269.4 216.1 231.9 274.9 1932 272.3 237.6 201.9 (1,000 tons) .... 1930 267.8 211 263.6 263 I 93I 269.4 244 213.2 216.1 Output of iron ore I 93I 51.6 46.4 33-8 3i -3 1932 40.6 42.6 32 6 (1,000 tons) .... 1930 119.1 91.8 95-4 71.2 I 93I 51.6 53-9 52.8 464 Output of pig-iron I 93I 23.6 23.5 21.1 20 1932 22.5 20.9 8.9 0.0 (% of normal) . . . 1930 62 50.2 45-6 19.5 I 93I 23.6 24-5 23.8 23.5 Output of steel (% of I 93I 48.4 47.6 38.2 30.1 1932 33-3 32.5 xi.9 23.2 norm al)...... 1930 86.6 54-3 63.1 43-5 I 93I 48.4 50.4 52.2 47.6 Output of rolled metal I 93I 57-2 48.5 4M 31-4 1932 32.6 314 15.8 28 goods (% of normal). l i 930 99-4 59-1 73-8 48.7 I 93I 57-2 56.6 57-5 48.5 Production of: Cotton yam (% of 1931 71-5 51.8 73-9 83.2 1932 73-9 80.2 72.8 normal)...... 1930 77.1 76.8 81.5 76.1 I 93I 71-5 72.2 68.1 51.8 1,878 1,701 1932 1,894 1,798 1,689 Paper (wagons) . . • I 931 i ,747 i ,745 1930 1,850 1,662 1,605 1,657 I 93I i ,747 1,882 1,716 1,878 1,800 1,764 i,901 1932 1,672 1,618 Cellulose (wagons) . • I 93I 1,765 i,7i 4 1930 1,784 i ,734 1,773 i ,532 I 93I 1,800 2,134 1,662 i,765 874 1932 490 836 891 Wood pulp (wagons) I 93I 675 924 975 1930 833 897 999 813 I 93I 675 1,024 784 924 1932 168 241 Cardboard (wagons). • I 93I 185 347 245 155 244 1930 527 555 491 315 I 93I 185 185 3°° 347 Beer (1,000 hecto I93I 385 512 149 194 1932 340 343 347 litres beer-wort) . 1930 535 282 313 I 93I 385 396 426 512 513 86.7 Electric power (mil 1931 76 963 105.8 1932 87.5 85.5 88.4 9*-3 76 lion kilowatt-hours) 1930 94-4 88.4 95-7 107.7 I 93I 9I -3 90 89.9 265 Unemployment (thou I93I 304-1 191.1 202.1 329.6 1932 352.4 3039 271-5 sands) ...... 1930 239.1 150 163.9 294.8 I 93I 304-1 246.8 208.9 191.1 Warehouse stocks (Viennese municipal warehouses : insured I 93I 3,902 8,459 9,307 13,348 1932 10,255 7,729 7,409 value of goods, in 1930 3,963 10,648 9-570 6.391 1931 3,902 3,452 6,041 8,459 thousands of Schil lings) ...... 53.5 Sensitive Prices I 93I 64.5 58 55-2 59-5 1932 55-5 54-5 53-7 (1923 = 100) . . . 11930 95 90.2 83 69-5 I 93I 645 62.9 59-6 58 Prices : 1 1931 107 110 108 112 1932 112 116 ii5 Wholesale . . . . ■ 113 110 1930 121 121 115 107 I 93I 107 108 107 1931 141 1932 143 144 R e t a i l ...... - 137 I37 137 143 143 1930 146 146 144 142 I 93I I 37 137 136 137 Stock Exchange index 68 — 68.6 1932 67.9 63.1 62 $ (average 1927=100) : I 93I 84.6 654 660 Thirty-six Industrial 1930 97-7 92.1 87.8 82.5 I 93I 84.6 81.9 7°3 Shares ...... Savings Deposits2 1,801.4 1932 1,440.1 1,441.1 1,422.5 x,4i°-5 I 93I 1,576.3 i,453-3 i,383-5 i,576-3 (millions of Schillings) ' 1930 1,582.4 1,633.4 1,671.4 1,7138 I 93I 1,801.4 1,792.9 1,718.9
1 Index of the Austrian Statistical Service based on the gold prices of the first half of 1914 (the indices are based on prices middle of the month). 2 Schilling deposits only. 3 Middle of the month. — 39 —
Appendix XIII.
DECREE OF THE FEDERAL GOVERNMENT, DATED JULY i i t h , 1932, CONCERNING PROVISIONAL REGULATIONS FOR THE PERIOD DURING WHICH THE EXPORT OF FOREIGN EXCHANGE FOR THE PAYMENT OF DEBTS ABROAD IS PROHIBITED.
In virtue of the Federal Constitutional Law of February 19th, 1932 (Federal Law Bulletin, No. 70) concerning authority for the issuing of regulations and intended to protect the national economy involving legislative changes (Second Enabling Act relating to currency policy), and with the consent of the Principal Committee (Haufitausschuss) of the National Council (Nationalrat), it is decreed as follows : Article 1. (1) If foreign currency is neither assigned nor released by the Austrian National Bank for the payment of interest or for the amortisation of debts in foreign currencies mentioned in paragraph (2) due to creditors having their domicile abroad, the debtors shall be obliged, when the debts fall due for payment, to deposit an amount in Schillings, at the rate fixed by the Austrian National Bank, equivalent to the amount which they owe with a fund to be established for that purpose (Article 2). Similarly, sums already due at the time of the promulgation of the present Decree shall be so deposited within eight days at latest. In the case of loans for which bonds have been issued, the creditor’s domicile (headquarters) shall be deemed to be in a foreign country if the places appointed for the payment of such loans are situated abroad. The sums due in respect of the interest and amortisation on such loans shall be deposited with the fund on the dates contractually appointed for the payment of such sums at the places of payment. (2) The following shall be liable to make the deposits mentioned in paragraph (1) under the conditions laid down in th at paragraph : (a) Austrian territorial public bodies (the Federation, Federal States and communes) in respect of all loan liabilities in foreign currencies ; (b) All other physical and legal persons having their domicile (headquarters) within the country, in respect of the service of interest and amortisation of loans in foreign currency, for which bonds have been issued; (c) The persons mentioned under (b) in respect of interest due periodically on any other loan liabilities in foreign currencies ; (d) All legal persons mentioned under (a)-(c) in respect of their liabilities arising out of security given by them for the liabilities mentioned under (a)-(c) if the principal debtor is under obligation to deposit the sum in question and has not complied with such obligation. (3) The debtor shall be released from the obligation to make the deposit (paragraph 1) if he contracts with his creditor for the discharge of his liability in Schillings. (4) As from a date to be announced by the Federal Minister of Finance and subject to his consent, further sums due may also be deposited with the above-mentioned fund in respect of the liabilities referred to under paragraph (2) (c) should the debtor have his domicile (headquarters) within the country, and the creditor have his domicile (headquarters) abroad, and should the creditor and debtor agree th at such deposit shall be made. (5) On application from a creditor in respect of bonded loans granted by a trustee, the Federal Minister for Finance may, by agreement with the Austrian National Bank, authorise a deposit paragraphs (i)-(4) to be made to a special account with the Austrian National Bank or with another financial institution. In such cases, the provisions of the present Decree shall apply mutatis mutandis. (6) In all cases, the debtor shall immediately inform his creditor of the deposit that has heen made. In respect of liabilities arising out of bonds, should a trustee be appointed, he shall be notified, and in other cases notification shall be made in the appointed quarter.
Article 2. (1) A fund shall be formed at the Austrian National Bank from the sums in Schillings paid in under Article 1, and shall be administered by the Bank with the collaboration of its adviser. The fund shall have a legal personality. (2) The Austrian National Bank shall be entitled, for the purpose of covering its expenses, to recover its disbursements from the sums administered by the fund; the amount charged for such purpose shall be subject to the approval of the Federal Minister for Finance. (3) The representation and management of the fund shall be governed by the rules for the administration of the fund, which shall be subject to approval by the Federal Minister for Finance, and shall be published in the official Wiener Zeitung. The accounts of the fund shall also appear m the same journal. (4) For the purpose of carrying out the provisions of the present Decree, the fund may issue regulations by virtue of publication thereof in the official Wiener Zeitung in respect of procedure or business transactions between depositors and the fund. Such regulations shall be subject 0 approval by the Federal Minister for Finance. (5) In respect of its assets and its business transactions, the fund shall be entitled to the sarne exemption from taxes and dues as that to which the Austrian National Bank is entitled er Articles 113 and 114 of its Statutes. — 4o —
Article 3. (1) The sums deposited shall be credited to the depositor in a " blocked ” account. The Austrian National Bank shall invest the proceeds of the fund at interest, in so far as is compatible with its currency and business policy, in such securities as the Austrian National Bank would acquire for its own account as note cover. In its choice of investments, the Austrian Bank shall undertake to exercise the care expected from a reputable business man. The interest earned shall be divided proportionately among the “ blocked ” accounts. (2) The legal disposal by the debtor of the sums credited to him with the fund through transfer, cession, pledging or other legal methods of disposal inter vivos shall not be valid. The execution of debtors’ claims against the fund as a result of deposit may not be enforced. Such claims also shall not form part of a debtor's estate available for payment of debts in the event of his insolvency. Article 4. If a debtor has made a deposit in accordance with Article 1, the following regulations shall apply to claims in respect of such deposit : (a) The creditor may not invoke any contractual right to give notice of withdrawal or to claim immediate withdrawal of capital sums in the event of failure to pay at the proper time annuities, instalments or interest, or any other legal measures connected with such cases prejudicially affecting the debtor. (b) Prescription shall be suspended in respect of such claims. (c) Claims other than demands for certification shall be rejected; nevertheless, the mere fact that a demand for enforcement is not admissible shall not give any legal title to claim immediate certification. (d) Execution orders, or orders to deposit security, shall not be granted, or, if already granted, shall be cancelled or withdrawn. (e) No provisional disposals may be permitted. Article 5. If a debtor fails to comply with his obligation to make a deposit in accordance with Article 1, and if the creditor takes legal proceedings to obtain payment and his claim is found legally valid, the only award that may be given shall be the deposit (Article 1) of an amount equivalent to the claim in Schillings at the rate of exchange fixed by the Austrian National Bank. Article 6. (1) The fund shall release the sums or parts of the sums managed by it to the depositors for the payment of their liabilities: (a) If the creditor contracts with the debtor for the discharge of his claim by payment in Schillings; (b) If and in so far as the Austrian National Bank, after deposit has been made, assigns or releases the requisite sums in foreign currency. Such sums shall also be released should the debt be extinguished. (2) The fund may, in the cases provided for under paragraph (1), (a) and (b), itself make payment to the creditor for account of the debtor. Article 7. If a Federal State or a commune, for the purpose of discharging a liability of the kind mentioned in paragraph 1, pledges (assigns) its share of the joint federal taxes or its own taxes or additional taxes collected through the organs of the Federal Finance Administration, the Federal Ministry of Finance shall be bound, on the following conditions, at the request of the creditor or of a contractually appointed trustee, to deposit with the fund an amount in Schillings corresponding to the liabilities due. (1) The Federal Ministry of Finance shall be bound to remit the sums in question to the creditor or trustee, in accordance with the terms of the pledge (assignment) and of the instructions received by it. (2) The corresponding sum must be recovered from the share of the Federal State (commune) in the amount of the joint taxes or the taxes or additional sums collected on behalf of the State (commune) concerned. Article 8. (1) If, under the present Decree, the deposit of Schillings at the rate of exchange of the Austrian National Bank is required in respect of liabilities in foreign currencies, the basic r a t e of exchange adopted shall be that for the working day immediately preceding the day on which the sum is due. (2) The provisions of the decrees concerning foreign exchange shall not be in any way affected by those of the present Decree. Nevertheless, payment in foreign currency (Article 4, paragraph 5> of the third Currency Decree) in respect of liabilities covered by Article 1 of the present a g r e e m e n t may not b e claimed if the Austrian National Bank neither assigns nor releases the foreign currency necessary therefor. (3) The present Decree shall come into force on the date on which it is promulgated ; it shal cease to be in force on a date to be determined by Decree of the Federal Government with the consent of the Principal Committee of the National Council.
(Signed) D o l l f u s s . W in k l e r . Sc h u s c h n ig g . R in t e l e n . R esch. W eidenhoffer . J a k o n c ig . V a u g o in . B a c h in g e r . Ach.