[Communicated to the Members — of the Council.] C. 342. 1924- H.

LEAGUE OF NATIONS

Geneva, July 30th, 1924. FINANCIAL RECONSTRUCTION OF AUSTRIA (Second Year)

EIGHTEENTH REPORT BY THE Commissioner-General of the League of Nations for Austria.

(Period May 15th to June 15th, 1924. — Sixth Month of the 3rd stage.)

I. — INTRODUCTION

I have the honour to submit to the Council of the League of Nations my Eighteenth Monthly Report, for the period May 15th to June 15th, 1924. Much of my office’s time during this month was taken up with the preparatory work for the session of the Council. I went to Geneva with the representatives of the Austrian Government to attend the meetings of the Financial Committee, the Committee of Control, and the Council. By its decision dated June 16th, in which it adopted the conclusions of the report of the Financial Committee and myself and took note of the resolution of the Committee of Control, the Council agreed to a higher level of equilibrium being fixed than that indicated in (350 million gold crowns). The investigations for the purpose of determining a new figure in agreement with the Austrian Government will be pursued pending the arrival in August of the delegation appointed to conduct the enquiry in conjunction with me. I feel certain that the Austrian Government will also employ this interval in actively preparing the concrete proposals for those measures of re-organisation which it still considers feasible and the actual figures at which it thinks the budget can be permanently balanced. The negotiations will, of course, be rendered easier by the knowledge that the policy of reform, which is at present being pursued in a very large number of countries, still is and will continue to be the main plank in the Austrian Government’s programme. As the joint report by the Financial Committee and myself states: “The collaboration of the Austrian people as a whole will be the most effective means of expediting the date at twhich the Council can terminate the control of the Austrian budget, which, in the terms of the Protocols, is to be brought to an end when the Council shall have ascertained that the financial stability of Austria is assured.”

II. — EXECUTION OF THE REFORM PROGRAMME

A. 1924 B u d g e t .

As I mentioned in my Eleventh and Twelfth Reports to the Council (Documents C. 735.1923. II, pp. 4-8, and C. 13. 1924. II, pp. 5-7), the Government, on November 20th, 1923, laid before Parlia­ ment a draft budget estimating for a deficit of 836.7 milliards of paper crowns. The debate in Parliament being for several reasons continued until May, it became necessary for the Chamber to vote provisional twelfths. (See my Thirteenth and Sixteenth Reports, page 2.) A budget was finally passed on May 21st estimating for a deficit of 1,166 milliards. Although the costs incurred by the revision of salaries in were not shown in the draft budget, allowance had to be made for them in the estimated expenditure in the budget as actually passed, the total of which was thus increased by 501 milliards. In order to compare the 1924 budget with the 1923 budget, we must re-group the figures in accordance with the method adopted in the Finance Law, in Article 1 of which the budget is divided into the four following categories: Central Administration, Monopolies, State Undertakings and Railways. (For the 1923 budget, see my Seventh Report, Document C. 521. 1923. II, page 2).

S. d. N. 1550 (F.) -J- 140u (A.) Impr. Kundig. 4- Customs Tariffs Amendment Bill. At the end of May, the Government laid before Parliament a Bill for the Amendment of the Customs Tariffs. It decided that it was necessary to amend the present tariff, which is still, generally speaking, that of the former Austro-Hungarian Monarchy, with this difference, however, that the majority of the present duties are about 70 per cent of the pre-war duties. Various modifications of detail have been introduced since the war, e.g., a considerable increase in certain fiscal duties (alcohol, spirits, sugar, etc.) and in duties on luxury articles; the duties on certain half-finished articles (ironware, tanning materials, etc.) have been reduced or even exempted from import duties in order to promote national industries ; in order to reduce the cost of living and to ward off the famine threatening Austria after the Armistice, the import duties on certain categories of foodstuffs were also abolished. Further, certain duties were increased to protect national industries. All these measures affected the home markets and were intended by the Government to be supplemented by an appropriate foreign commercial policy. I should say that Austrian industry largely depends upon its ability to export to markets which, though before the war part of the Austro-Hungarian Monarchy, are now none the less foreign markets. Statistics, indeed, show the importance of Austria’s exports to the neighbouring or Succession States. During 1922, these exports represented 89 per cent of her total exports and were distributed as follows : Value in thousands of gold crowns Country 1922 1923 Kingdom of the Serbs, Croats and Slovenes . . . • • • 138,449 137,091 G erm any...... 161,865 131,259 Czechoslovakia...... • • • i i 3,H 3 104,857 Italy ...... • • • 113,015 100,156 H u n g ary ...... 142,900 84,977 Poland...... • • • 101,514 83,695 R o u m a n ia ...... 78,833 Switzerland...... • ■ • 52,423 70,644 Strangely enough, Austria would appear to have encountered the most serious difficulties from the point of view of foreign commerce in the neighbouring countries. Several of these coun­ tries have had to struggle through exchange crises which forced them to curtail imports by a system of import prohibitions and a rationing of the goods to be imported. The constant drop in the exchange again hampered the conclusion of commercial treaties and led to the establishment of high Customs tariffs. In these conditions, Austrian industry was of course forced to look more than ever towards the home market. Here, again, however, serious difficulties were encountered. The Government thinks that they are due to the reduced Customs tariff. Its view is that, following the stabilisation of the crown, these tariffs did not afford sufficient protection to Austrian industry against those foreign industries which were still reaping the benefits of a perpetually falling exchange. It was also believed that, owing to the reduction on the import duties, foreign countries had but little to gain from negotiations with Austria for the conclusion of treaties of commerce. Real commercial treaties only exist with Italy and France. Negotiations are in progress with Germany and Czechoslovakia, and are contemplated in the near future with Hungary, Poland and the Kingdom of the Serbs, Croats and Slovenes, where the stabilisation in the rate of exchange appears to have provided the indispensable basis for the conclusion of tariff treaties. Conventions on the basis of the most-favoured-nation clause exist with Switzerland, Poland, Roumania, Belgium, Great Britain and several other European countries. The Government consulted me on the new tariff and I replied that, from the point of view of the guarantee of the service of the loan, I saw no reason for an increase in the present rates. I expressed the fear that the new Customs duties on certain foodstuffs and fats would result in an increase in the cost of living, and would thereby render it more difficult to balance the budget. The Government, however, emphasised the fact that the new rates should be regarded as a compromise between interests which were frequently in conflict. The imposition of new tariffs on foodstuffs was necessary, in its opinion, to encourage the development of agriculture. The increase in the Customs duties on textiles was intended to protect this important branch of Austrian industry, while the boot-making industry would benefit from an increase of duties on manufactured goods. Certain representatives of the metal industry, on the other hand, seemed to fear that the new rates would exercise an unfavourable effect on the import of several raw materials necessary to their industry. A Parliamentary Committee will open an enquiry among all the persons concerned before the actual debate in Parliament. In view of the great importance of this question, it is to be hoped that the bill will not be passed without careful consideration.

C. R e d u c t io n in t h e N u m b e r o f O f f ic ia l s . In the period from May 3rd to 31st, the number of dismissals was: Central Administration...... 292 State U n d e rta k in g s...... 1,401 Making a total o f ...... 1,693 (Details will be found in Annexes I Va and IVb.) The reduction in the number of officials since the beginning of the process of reconstruc­ tion accordingly amounts to 67,109 as compared with the minimum of 100,000 accepted by the Government in its agreements with the Provisional Delegation of the League of Nations. — 5 —

III. — THE FINANCIAL SITUATION

The position of Accounts A and B, which are under my control, is shown in Annexes Ha and 116. The service of the loan called for the withdrawal during May of 73 milliards of paper crowns from the Customs and tobacco receipts; the remainder (231 milliards) was refunded to the Austrian Treasury. This sum, together with uncontrolled revenue from taxation collected by the Government, was sufficient to meet expenditure, no release of funds from the loan being necessary to cover the deficit. May was therefore the fifth month in which I did not find it necessary to release any of the balance of the loan in order to meet current Government expenditure. The outstanding portion of the residue of the French credit, which had been in part refunded in April, was paid off during May and accounted for the expenditure of $1,114,000. The balance of the loan at May 31st is therefore $43,047,000 ($34,527,000 in foreign currencies and $8,520,000 in crowns). Of the amount in foreign currencies, $148,000 have been devoted to a short-term advance to the tobacco monopoly ; $320,000 represent scrip of the guaranteed loan which has already been redeemed on the American market as a first step towards amortisation; $430,000 represent an indebtedness on the part of the Austrian Government for an advance of £99,000 granted by me for the purchase of bar silver pending the issue of the new coinage. The remaining $33,629,000 consist of foreign currencies in the hands of the National Bank, which has disposed of half this sum in Austria. That portion of the loan which has been kept in the form of crowns ($8,520,000 or 605 milliard crowns) is of course at the disposal of the Austrian Treasury; 254 milliards are on deposit at the National Bank, 71 milliards were lent at short dates in May for electrification operations in Upper Austria, and 280 milliards are on loan in the markets at short dates for the purpose of supporting the Stock Exchange after the refund of 20 milliards at the end of May. It is expected that the funds advanced to the Stock Exchange will be gradually repaid in the next few months.

The preliminary budget for June, shown in Annex III, once more demonstrates the need for a revision of the 1922 agreements so far as they relate to the level of equilibrium —• as, indeed, the Council recognised in its Resolution of June 16th. The following are the estimates for June:

Expenditure ...... 745 milliards R eceip ts...... 691 »

D eficit...... 54 milliards Adding both to receipts and to expenditure the tax on railway traffic (69 milliards), which is left in the hands of the railways to cover a portion of their deficit, we obtain the following figures, which may be compared with those of the original programme :

Programme : June 1924 1st half 1924 2nd half 1924 (:milliards of paper crowns) Expenditure ...... 745+69 = 814 573 527 R e ceip ts...... 691+69 =760 522 553

D eficit...... = — 5 4 — 51 o S u r p lu s ...... = + 2 6

It will be seen that, since the beginning of 1924, although the deficits have always been kept within the limits laid down in the scheme, the same cannot be said of the total expenditure. The table in Annex III shows, indeed, that the Austrian Government has had to provide for an increase in its commitments every month : 592 milliards in January, 651 in April, 745 in June. On whatever grounds this increase of expenditure may be justified, the fact is none the less remarkable. The estimated deficit for the first half of 1924 (249 milliards) is less than the estimate in the scheme (307), although the estimated expenditure (3,843+400 Verkehrssteuer=4,243), even before the third stage in the adjustment of salaries was reached, exceeded by 800 milliards the figure laid down in the programme (3,440). * * * Notwithstanding the serious financial crisis, to which further reference will be made below, the Customs and tobacco revenue paid into the account under my control showed a noticeable improve­ ment during May: Milliards of paper crowns: 210 for tobacco + 94 for Customs == 304. — 6 —

In the two preceding months the figures were 270 and 281 milliards. The consumption of tobacco in particular showed a large increase, which may be taken a.s evidence of a rise in the general standard of living ; eighteen months with a stable currency have enabled the general public to improve its living conditions, and have, at the same time, rendered the adjustment of wages easier and made it possible in some degree to supply wants which had formerly to remain unsatisfied. This seems a reasonable explanation of the fact that the yield from indirect taxation has increased even during a period when average and large fortunes were suffering severely from the crisis. If this proved to be the case, it would to some extent justify the view that the present level of public revenue is unlikely to be seriously affected by the crisis in a country in which indirect accounts for considerably more than direct taxation. These questions will be thoroughly investigated on the arrival in Vienna of the Delegation of the Financial Committee, which is to consider, in con­ junction with me, the figures on which the budgetary equilibrium of Austria is to be based.

* * *

Between May 7th and June 7th, the gold reserve of the National Bank decreased by nearly 35 million gold crowns, notwithstanding the sale (authorised by me) of 7 million gold crowns’ worth of foreign currencies drawn from the loans, which were handed over to the Bank at the end of May in return for an equivalent sum in paper crowns. During the same period, the holdings of bills increased by 40 million gold crowns, namely, from 2,124 milliards to 2,708 milliard paper crowns (see Annex V). These figures show the severity of the financial crisis. The collapse of the speculative move­ ment of the franc, though it occasioned the crisis and hastened its development, was certainly not the sole cause of it. As a result of the exaggerated boom of 1923 and the excessive capital increases which took place, the market was deeply committed, and such a shock gave rise to misgivings and caused withdrawals of foreign credits, which had somehow to be met. The effect of this was a “ bear” movement at the Stock Exchange and a consequent fall in the rate of exchange, while the holdings of bills increased and the cash reserve diminished. ■ The effect of these two latter results was rendered more serious by the fact that the National Bank’s official discount rate was unduly low. Its maintenance at 9 per cent — considerably less than the price of money on the market — had the effect of forcing borrowers to go to the National Bank whenever they required credit ; the Bank was thus obliged to take up all the commitments of the market by lending crowns at 9 per cent, and subsequently paying out foreign currencies from its reserve when the crowns were repaid. Consequently, the total circulation varied very little, but the gold cover for the notes gave place to an increasing extent to a paper cover. For this reason, the National Bank decided to raise its discount rate from 9 per cent to 12 per cent on June 5th, in the hope that some borrowers would in future obtain credits direct from abroad to meet their foreign commitments, instead of relying solely on the Bank. The reasons for this increase in the discount rate have perhaps been better understood abroad than in Austria. Foreign markets have welcomed the National Bank’s first attempt to protect its reserves, and it is to be hoped that foreign capital will again be more freely offered 1. On June 7th, the cash reserve, 3,280 milliards (228 million gold crowns), was sufficient to cover 44 per cent of the note circulation (7,390 milliards). If to this we add the total deposits at sight (682), it appears that the Bank has obligations amounting to 8,072, which are covered to the extent of 41 per cent by the cash reserve. If, as provided for in the Statutes, we deduct from those obliga­ tions the amount of the State Debt less 35 milliards, the percentage of cover amounts to 56 per cent (see Annex VI).

IV. — THE ECONOMIC SITUATION

The figures for foreign trade during April are fairly satisfactory ; the trade deficit, which fell from 94 million gold crowns in January and February to 84 in March, was only 81 for April (see Annex I). This favourable position is due to a considerable improvement in the volume of exports, which in April, for the first time, exceeded 100 million gold crowns in value. Imports (182 millions), particularly raw materials and manufactured goods, also increased — largely, it would appear, owing to the renovation of plant. The resumption of building, notwithstanding the financial crisis, has given a remarkable impetus to the building industry, and to those branches of production which depend upon it. This must be regarded as the principal cause of the highly satisfactory decrease in the number of unemployed, which at the end of May had fallen to 68,000 as compared w'ith 82,000 in the previous month, and 108,000 a year ago. The latest figure is the lowest recorded since November 1922. These favourable conditions, however, do not justify exaggerated hopes for the future. There is some danger that, during the coming months, the financial crisis may affect the development of the economic situation. The index of wholesale prices has fallen from 19.465 to 18.282. The Stock

1 The most recent developments on the Vienna financial markets have led to serious loss of confidence in Austria abroad. The considerable fall in stocks, and more particularly the collapse of several joint-stock and private banks, have, in many cases, led to somewhat exaggerated and unduly generalised inferences. There has undoubtedly been speculation, insufficient control, and a prevalence of improper practices ; but it would be a mistake to suppose that all the banks operating on the Vienna market are affected. Fortunately, several of them have never departed from their conser­ vative principles and sound traditions, and the stability of these houses has been in no way impaired by the crisis. — 7 —

Exchange index fell a further n per cent between May 15th and June 15th; the present figure 1,376 (1914=1) is the lowest recorded during the past year. It is estimated that the total value of all the Austrian shares on the market, as shown by the market quotations for the shares of the 221 companies quoted at Vienna at the end of , dropped from 31 to 20 million crowns between that date and the end of May. This depression has some influence on capital increases, which were considerably less during May. It would therefore be wise to be prepared for a slackening of economic activity. On the other hand, the Stock Exchange crisis may have a good effect on industry in other directions. It has terminated a period of speculation from which producers were the first to suffer. The high price of money during last year, wThen the stabilisation of the currency did away with all danger of losses on the value of the crown, was primarily due to the enormous speculative demand for money on an extremely short market ; manufacturers had to pay extortionate rates for the credits which they required at a time when all available funds were being poured into the Stock Exchange in the hope of a profit on exchange differences. It is possible that the heavy losses which have been experienced during the last few months will bring home the danger of this form of speculation. In that case, they would have the effect of directing capital to investments bearing interest at fixed rates ; an increase in interest-bearing deposits would place the banks in a better position to secure for manufacturers the working capital they need. In order to help this movement on, the deposit rate has been raised at the same time as the discount rate. What has still to be done is to arrange for the furnishing of cheap credits to industry, and nothing which may lessen the disparity between the deposit rate and the credit rate must be neglected during the period before us. Certain taxes which help to raise the price of money should be revised, in order to reconcile the financial interests of the Government with those of the public, upon which, in the last resort, the public revenue depends.

LIST OF ANNEXES.

I. (a) Statistical Data for in Millions of Gold C r o w n s ...... 8-9 (b) Figures in Milliards of Paper Crowns on which the Calculations in Gold Crowns in Annex 1 (a) are based...... 10-11

II. Austrian Treasury Accounts under the Control of the Commissioner-General : Account A ...... 12 Account B ...... 13

III. Preliminary Budget for 2 4 ...... 14-15

VI. Return dated May 31st, 1924, showing Reduction of Staff: (a) Central A dm inistration...... 16 (b) State Undertakings...... 16

V. Comparative Table of the Balance-Sheets of the National Bank ofAustria from May 7th to t h ...... 17

VI. Position of the National Bank of Austria from May 7th to June 7th, 1924 . . . 18 Annex la. STATISTICAL DAB (Value in million:

Third Stage ^^îü^sîâg^ 1st Stage

19 '4 Monthly Average P u b l ic F in a n c e s . Since 2nd 1st June May January 1st half-year half-year 1924 1923 1923

(a) Gross receipts ; C u s to m s ...... — 14-30 10.39 7-- 4.9 T o b a c c o ...... 7-5° 11.66 11.6 8.2

Total . . . 21.80 22.05 18.6 13-1 (b) Monthly preliminary budgets : E stim ated e x p e n d i t u r e ...... 5176 43-41 44-47 43-7 46.8 E stim ated r e c e i p t s ...... 47-99 42.71 41-59 30.6 23.7

Deficit. . . 3-77 0.70 2.88 131 23.1 January- (c) Closed accounts for last fiscal period: ( Correcte d figures) E x p e n d itu r e ...... 1 — — 52.92 43-7 49-4 Recei pts ...... 49.84 38.9 35-i

Deficit. . . — — 3.08 4.8 14-3

Discharged R e d u c t io n in t h e N u m b e r o f O f f ic ia l s Total In M ay 1924 up to M ay 31st, 19- Central Administration and State Undertakings ...... 1,693 67,223 (Südbahn: 207) (Südbahn: 9,481 T r a d e a n d I n d u s t r y Monthly average in first quarter of 1924 Value of im p o r t s ...... 182.2 millions of gold cr. 166.9 millions of gold c Value of e x p o r t s ...... IOI.5 » D I S 77.2 » » » Trade deficit (exclusive of movements of precious metals) 80.7 millions of gold cr. 89.7 millions of gold c

Third Stage Third Stage End of End of First T r a d e a n d I n d u s t r y . M ay 1924 A p ril 1924 Second Stage, Stage, June December 1923 1923

N u m b e r of u n e m p lo y e d receiv in g relief * ...... 68,475 84,180 98,060 95.594 (C o rresp o n d in g m o n th in 1 9 2 2 -2 3 )...... (107,965) (132,226) (117.144) (33.393) Number of emigrants proceeding abroad * * ...... 118 163 605 1.557 (C o rresp o n d in g m o n th in 1 9 2 2 -2 3 )...... (829) (621) (1.278) (719) Number of travellers who stayed at hotels in Vienna **.... 40.441 40,651 38,740 30,132 (C o rresp o n d in g m o n th in 1 9 2 2 -2 3 )...... (31.746) (28,587) (22,301) (43.244) Official index of the cost of living ** : F o o d ...... 14,169 13.838 12,860 14.132 C l o t h i n g ...... 20,323 19,849 18,673 15.323 751 751 724 496 14.796 14,824 14,525 15.364

12,209 11.973 11,249 11.513 15.14/ 14.850 13.948 14.338 H o u se r e n t ...... 18,252 18,252 16,216 17.124 iL ig h t a n d f u e l ...... 22,183 22,183 22,582 21,061

C o m b in e d i n d e x ...... 19,465 19.465 18,181 18,339 ditto, excluding house rent. . B. 1 F o o d s t u f f s ...... 14,400 14,400 14,400 14,400 Wholesale prices 1 Materials required by industries .... (1st h alf 1914 = 1) I 70.935 70.935 70,935 70,935 ( C o m b in e d i n d e x ...... Exchange index according to the average gold parity rate fixed for Customs *. 1 gold crown = paper crow ns ...... Mean parity of dollar in paper crowns (pre-war parity 4.935 p a p e r c r o w n s ) ...... 65-7 59-1 41.3 23-5 1,539 1.724 2,5 86 - 1.479 - F in a n c e o t h e r t h a n P u b l ic . Millions of gold Millions of gold Millions of gold Millions of gold Deposits in banks and savings banks * (millions of gold crowns at the crowns at the crowns at the crowns a t the c r o w n s )N ...... a t io n a l B a n k o f A u s t r ia *. rate of 14,400 rate of 14,400 rate of 12,834 rate of 12,834 Stock Exchange index (first half 1914 = 1) *** ...... State Debt to the National Bank (advances during period of inflation)...... 156.9 159-4 197-4 198.4 Holdings of bills...... 184.6 148.- 103.- 5 5 - Gold reserve and foreign currency holdings...... 239.7 262.2 3 0 5 - 203.- Value of notes in c ir c u la tio n ...... 524.6 5 0 8 - 555-“ 423— Percentage of circulation covered by metal re se rv e ...... 45-7 % 51-6% 55% 47-9%

• At the end of the month. •* During the month. *** Middle of month. — 9 —

FOR MAY 1924 Annex la. of gold crowns.) £1 = approx. 22 gold crowns $1 = approx. 5 gold crowns Beginning

of Reform Scheme R e m a r k s

December 1922 The figures shown for the preliminary monthly budgets and closed accounts are the official figures of the Austrian Government j the expenditure and receipts columns do not include the amounts of taxes refunded to Provinces and Communes (Ertragsanteile). They also do not include certain changes in the accountancy system (the effect of which is to make the totals for expenditure and 4- receipts appear smaller) and accordingly no exact comparison is possible with the figures for 6.- deficits contained in the Programme. The programme provides for a monthly average (exclusive of Ertragsanteile) :

For the 3rd stage 2nd stage 1st stage Expenditure ...... 3g-8 47-5 million of gold 56- Receipts...... 36.3 17.9 24 ,0 crowns D e f ic it...... 3.5 13.2 23.5 38.1 The preliminary budgets authorised by the Commissioner-General provided for a monthly average (ex­ clusive of Ertragsanteile1 : for Jan.-March , 9 2 k for the second half-year rg 2 3 for the first half-year IQ23 Expenditure. . 42.1 4 3 .^ 46.8 millions of gold crowns. Receipts 38.6 30.1 23.7

Deficit. 3.5 13. 1 23.1

Strength on The Programme provides for the discharge of a total of 100,000 officials, before July 1st, 1924. M ay 1st, 1924 The Südbahn staff was not under the authority of the State administration when the work ot 178,245 reconstruction began. (plus 21,788 employees on the Südbahn)

Beginning of Reform Scheme Increase or Decrease

December September Compared with Since 1922 1922 preceding month

120,525 37.999 —— The number of unemployed receiving relief was 167,417 in . 1,278 1,036 ——

22,301 51,223 ——

+ 2% Index for the first half of June 1924 —— + 2 % — (+ 2 %). —— 0 % — — — 0 % —

9,375 11,271 + 2% + & % 12,442 I All the indices in this —— — — 15,376 I table Eire calculated accord- ———— f ing to the present prices in ——— — \ paper money as compared I with pre-war prices (co-effi- — — 0 % — 18,282 1 cient of high cost of living). 1 What cost 1 in 1914 now 14,380 15,100 — — 5 % 14,400 I costs x paper crowns.

71,008 74,976 — - 5 %

The exchange index of 1,376 at the 7-7 2.1 + 11 7 . + 3 ,0 2 9 .-% beginning of June is the lowest recorded 719 502 — 10.6% + 206.6% for the last year.

Millions of gold crowns at the The National Bank of Austria began ope­ rate of 12,834 Since rations on Jan. 2nd, 1923. In accordance Jan. ith, 1923 with the statutes, the sums in gold crowns Jan. ith, 1923 are calculated on the basis of the average 199-3 - 1 6 % — 2 1.3% rate of exchange for the second half 5 7 -- — + 24.8 % + 2 2 4 .-% of the preceding year, viz. : for 1923 = 9 3 - — — 8.5 % + 157.7 % 12,834 paper crowns (average rate July to 3 I 5 -- — + 3 .2 5 % + 6 6 .5 % ) ; for 1924 = 14,400 paper 29-4 % — 5-9 % + 16.3% crowns to each gold crown (average rate July to December 1923). — IO —

Annex lb. FIGURES IN MILLIARDS

ON WHICH THE CALCULATIONS IS

Third Stage Second Stage First Stage

M onth 1924 Monthly Average

Since January Second half- First half-year June May 1st, 1924 year 1923 1923

P u b l ic F in a n c e s

Gross Receipts:

Custom s...... — 206- 149.6 IOO.4 7 0 - Tobacco ...... — 108- 168.- 167.6 119.-

Total .... — 3 1 4 - 3I7-4 268.- 189.-

Preliminary Monthly Budgets:

Estimated Expenditure . . 745-3 625.2 640.45 630.2 674-3 Estimated Receipts .... 691.- 615.I 598.90 440.3 341.4

Estimated Deficit 54-3 IO.I 41-55 189.9 332.9

Closed Accounts for last Fiscal Jan.-March (Corrected figures) Period :

Actual Expenditure . . . —— 762.x 630.- 649.1 Actual Receipts ...... — — 717.7 560.- 435-3

D e f i c i t ...... — — — 44-4 — 70.- — 213.8

The figures given above for the preliminary budgets and for the closed accounts are the official figures published by the Government ; for all the stages the amounts refunded to the Provinces (Ertragsanteilc) are not counted as expenditure but are deducted from receipts. No exact comparison with the figures for deficit contained in the Reform Scheme is, however, possible, as certain changes (V erkehrssteuer, etc.) in the accountancy system make the totals for expenditure and receipts appear smaller.

Third Stage, end of Second Stage, end of First Stage, end of May 1924 December 1923

B a n k s *

Value of Deposits in the banks and savings banks ...... 9 46- 596- 338.- State Debts owing to the National Bank . . . 2,259.8 2,534- 2,547- Holdings of B ills ...... 2,658.9 1,323.- 7 1 3 -- Value of Gold Reserve and Foreign Currency Holdings...... 3,451-8 3,915- 2,606.- Notes in C irc u la tio n ...... 7,554-6 7,126.- 5 ,4 3 3 .-

* End of month. — II —

3F PAPER CROWNS Annex lb.

Sold C r o w n s in A n n e x I a a r e b a s e d

Beginning of Reform Scheme The rate of exchange adopted is the stabilised rate of 14,400 paper crowns to the gold crown (gold parity rate fixed for Customs).

December 1922

58 87

145 The plan provided for a monthly average (exclusive of expen­ diture on Ertragsanteile der Lander) during the : Odober-December 1922 (Monthly average) Third stage Second stage First stage 807 Expenditure . . . 573 milliards 643 milliards 684 milliards 258 Receipts...... 522 » 453 » 345

549 Deficit 5i 190 » 339

The preliminary budgets gave as monthly average estimates (exclusive of Ertragsanteile) during: Jan.-March Second half-year First half-year 1 9 2 4 1 9 2 3 1 9 2 3 Expenditure 607.1 milliards 630.2 milliards 674.3 milliards Receipts . . 556.- » 440.2 » 341.4 »

Deficit 511 190.- » 332.9

Beginning of Reform Scheme

December 1922 Septem ber 1922

IIO.- 31.6 2,558.- 732.- First balance-sheet of the Austrian 1,195- National Bank 4,054- (Jan. 7tb, 1923). — 12 —

Annex lia.

AUSTRIAN TREASURY ACCOUNTS SUBJECT TO THE CONTROL OF THE COMMISSIONER-GENERAL, MAY 1924

A c c o u n t A (Customs and Tobacco.)

Portion in Portion in Customs bills gold paper falling due R e c e ip t s . crowns crowns (milliards of (millions) (milliards) paper crowns) Receipts from May 1st to 31 st, 1924: T o b a c c o ...... (registers 206.-) 0 . - 2 1 0 .1 C u sto m s...... ( » 108.-) 0 . 0X3 94-1

( 314--)

Total receipts in M a y ...... 0 .0 1 3 304.2 Balance carried over on April 30th 0 .0 4 1 O.- OO Available 0.054 304.2 O

E x p e n d it u r e . From these receipts the equivalent of the foreign currencies necessary for the service of the loan on June 1st was withheld at the beginning of the month and transferred to the loan account to replace the foreign currencies deducted there­ from: British block . . 31.8 milliards American » . . 14.- » Austrian » . . 7-3 » . French » . . 6.- Italian » . . 4.8 » Spanish » . . 3-7 » Swiss » . . 2.3 » Swedish » . . 1.8 » Dutch » . . 0.6 » Belgian » . . 0.7 »

Total .... 73.- milliards 73-

The equivalent of £ 157.5 payable to the Trustees as remuneration in conformity with Article 21 of General Bond was deducted, viz . 0.05 The balance of the amounts paid in was refunded to the Austrian T reasury ...... 231.15 Balance on May 3 1 s t ...... 0.054 — 90.8 (or 54,397 milliards of paper gold crowns) crowns. — 13 —

Annex lib.

AUSTRIAN TREASURY ACCOUNTS SUBJECT TO THE CONTROL OF THE COMMISSIONER-GENERAL, MAY 1924.

A c c o u n t B. (Loans.) Portion in Portion in foreign paper currencies crowns R e c e ip t s. (dollar value) (milliards)

Exchange readjustments ...... 211,000 Balance carried over on April 30th, 1 9 2 4 ...... 38.304.000 432.-

A vailable...... 38.093.000 432.-

* * * The monthly payment to the trustees on June 1st (i/i2th of the annual service) necessitated the deduction of the following sums in May: £ 1 0 2 ,1 4 5 for the English block $ 1 9 7 ,5 0 9 for the American block $ 1 0 2 ,7 0 4 for the Austrian block 1 ,291,232 French francs for the French block 1 ,519,097 Italian lire for the Italian block 1 82.402 Swiss francs for the Swiss block 3 8 1 ,5 8 3 Pesetas for the Spanish block 9 5 ,6 5 2 Swedish crowns for the Swedish block 2 1 ,8 8 8 Dutch florins for the Dutch block 1 82.402 Belgian francs for the Belgian block. Total .... — 1,040,000 Tlu equivalent in paper crowns is transferred from Account A to Account B ...... + 7 3 - Salaries of Trustees for M ay...... 700 + 0.05 Expenses of the Loan Commission (portion)...... 1,300

Treasury in May. No sum released to cover the deficit. Refunded to the French Government the balance of the sum of 29,103,582 Fr. frs. viz : 29,103,582 — 11,700,000 refunded in April = 17,403,582 + 259,422 Fr. frs. interest on arrears m a k i n g ...... 1,114,000 Bonds of the loan to the value of 100,000 dollars (nominal) purchased in advance in the American market with a view to their amortisation (portion). Received as first repayment of the advance of 300 milliards to support the market, 20 milliards. Short term interest bearing loan of 71 milliards for electrification works in Upper Austria. Sold to the National Bank $1,410,000 for 100 milliard paper crow ns...... — 1,410,000 + 100.- Advance of £99,000 for the purchase of silver ingots for minting new currency $430,000.

The Balance on May 31 st was th e r e f o r e ...... $34,527,000 605.05 (including advance to the Tobacco Monopoly . . . 148.000 (including short­ and held in form of loan bonds...... 320.000 term market Advance for purchase of silv e r...... 430,000) loan of 280 milliards paper crowns and interest-bearing loan of 71 mil­ liards for elec­ trification works) Total dollar value 43,047,000 = $34,527,000 + $8,520,000 Annex III.

PRELIMINARY BUDGET — JUNE 1924.

ft* " W * "°m **• * * , » . ~o„d stage. and added expenditure, „ w„ don, duriog ,h,

not figure in the receipts, as contemplated in the'reform* scheme053* '' tl'" icderal Rallways 1,1 respect of the lines controlled by them; it is therefore deducted from their deficit and does I gold crown is taken as equal to 14,400 paper crowns.

THIRD STAGE OF REFORM SCHEME: JANUARY-

League of Nations Scheme (III) Estimates for t Half-yearly FEDERAL EXPENDITURE Annual basis Monthly basis Jan u ary 1924 1 basis Februaryig24 April 1924 May 1924 June 1924 12 /12 1 /12 1 /12 Total 1924 6/12 1 /12 1 /12 1/12 1/12 1 /12 6/12

(in millions of paper crowns) 1. Service of the debt : (а) Reconstruction l o a n s ...... (б) Other debts (net) ...... | 950,400 475,200.- 79,200 ! 74.734-1 70,155-3 70.251.7 113,778.1 79,766.4 80,800.- 489,600.— 1 8,966.4 2. Pensions and indemnities (net). . . . 6,9153 17,409.4 15,581.6 18,907.9 11,100.- 78,900.- 875,500 437,700.- 72,960 87,160.8 Pensions of retired employees of the Fede­ 99,516.6 97.669.7 106,367.3 105,469.6 107,300.- 603,500.- ral Railways and the Southern Railway (n e t)...... 3. A r m y ...... 22,000.- 22.000.- 37,000.- 33,000.- 33,000.- 147.000.- 540,000 270,000.- 45,000 46,000.- 47,240.- 47,240.- 48,078.- 47,828.- 47,800.- 4. Public welfare ( n e t ) ...... 460,800 230,400.- 38,400 284.000.— 5. Other administrative services . . . 52,383.9 50,805.1 69.000.- 57.804.9 54,208,6 50,300.- 2,395.400 1,197,700.- 199,617 184,405.6 334.500- 6. Payments to independent administra i 73,5I2 -9 175,611.6 178,591.- 176,990.6 185,800.- 1,074,900.- tions : (а) Subsidies for staff ...... 239,000 119,500.- 19,916 21,211.3 25,000.- 25,000.- 25,000.- 25,000.- 25,400.- (б) Refund of taxes ...... * * * * 146,600.— (c) Other payments ...... 4.9,100 24,600.- 4,091 7. Railways : — —— - _ (а) State Railways (net deficit). . 648,000 324,000.- 54,000 60,605.- (б) Southern Railway (net deficit). 76,000.- 57,000.- 45,000.- 45,000.- 49,500.- 333,100.- (c) Southern Railway, charges arising 3,000.- 3,000.- 3,000.- 3,000.- 12,000.— | 441,000 220,500.- 36,750 out of existing agreements. 41.578.8 1 7,000.- 1 8,678.-1 (d) Other railways...... 138,500 69,200.- 32,400.-! 89,700.—1 8. Deficit on other undertakings (net) 11.541 7.955-- 7,445-- 5.777-- 6,182.2 7,110.- 7,300.- 41,800.— 144,000 72,000.- 12,000 10,255.1 9. Deficit on monopolies (net) .... 12,397-7 9,096.7 7,988.7 9,827.6 57.300.- 106,900.- Increase in salaries not included above 2 10,405.- 10,400.— 36,000.- 54.300.- 2 90,300.— T otal E x p e n d it u r e . . 6,881,700 3,440,800.- 591,819.8 588,845.3 573,475 640,634.9 651.371-8 625,191.7 745,300.- 3,843,200.-

March April 1 SUdbahn Payments: under Siidbahn Rome A greem ent...... May June Total 25,700.- 2,600.— 2,600.- Share of the expenses of the Board of Federal Railways . 25,800.- 54,100.- 15,900.— 7,000.- The automatic increase in salaries in conformity with the index of the 6,100.— 6,500.- 35,5o o - involves the payment of an additional sum in respect ofsalarïe's" andVe‘nstonrfor“May tn ^ J u m ^ SUSpended untl1 June Ist- 1<324. only- The resumption of this system on June 1st Annex III (continued).

PRELIMINARY BUDGET — JUNE 1924 (continued).

THIRD STAGE OF REFORM SCHEME : JANUARY-JULY 1924

League of Nations Scheme (III) Estimates for

Half-yearly Annual basis M onthly basis Februaryi924 March 1924 April 1924 M ay 1924 J u n e 1924 Total IQ24 FEDERAL RECEIPTS basis 12/12 1 /1 2 1/12 1 /1 2 1 /12 1 /12 1 /1 2 1/12 6 /1 2 I/»

(in millions of paper crowns)

1. C u s t o m s ...... 1,296,000 6 4 8 .0 0 0 ,- 108,000 100,000.- 105,000.- 110,000.- 1 05 .0 0 0 .- 1 0 5 .0 0 0 .- 100,000.— 6 2 5 ,0 0 0 .- 2. Import and export duties ...... 101,500 5 0 ,7 0 0 - 8,458 7 .0 0 0 .- 7,0 0 0 .- 7 .0 0 0 .- 5 ,0 0 0 .- 7,5o o .- 7 .5 0 0 .- 4 1 ,0 0 0 .- 3. T a x e s on c o m m o d i ti e s ...... 433,200 2 1 6 ,6 0 0 .- 36,100 6 2 ,0 0 0 .- 7 0 ,0 0 0 .- 6 4 ,0 0 0 .- 6 5 ,0 0 0 .- 6 5 ,0 0 0 .- 62,100.— 3 8 8 ,1 0 0 .- 4. D ire c t t a x e s ...... 792,000 3 9 6 .0 0 0 .- 66,000 100,467.- 97 ,0 0 0 .- 200,000.— 180.000.— 1 6 0 .0 0 0 .- 260.000.— 9 9 7 ,4 0 0 .- 5. T a x o n ra ilw a y t r a f f i c ...... 1,036,800 5 1 8 ,4 0 0 .- 86,400 2.000.— 3 2,000.— 3 2 .0 0 0 .- 3 1,000 - 3 1,0 0 0 .- 3 6 0 0 .- 8 ,6 0 0 .- 3 6. Taxes (other than taxes on railway traffic) 1,497,600 7 4 8 ,8 0 0 .- 124,800 255,9 0 0 .- 2 5 8 ,0 0 0 .- 2 5 7 ,0 0 0 .- 2 6 4 ,5 0 0 .- 2 5 9 ,5 0 0 .- 2 6 0 .0 0 0 .- 1,554,900.- T o t a l ...... 5,157,100 2,578,500.- 429,758 5 2 7 ,3 6 7 .- 5 3 9 ,0 0 0 .- 640,000,— 6 2 0 ,5 0 0 .- 5 9 8 ,0 0 0 .- 6 9 0 ,2 0 0 .- 3,615,000.- Less taxes refunded to independent ad­ m in is tra tio n s 2 ...... — 871,800 — 4 3 5 ,9 0 0 .- — 72,650 — 90,830.2 — 98,524.3 — 97,540.3 -—110,000.- -1 1 0 ,0 0 0 .- — 1 2 0 ,7 0 0 .- —6 2 7 ,5 0 0 .- B a l a n c e ...... 4,285,300 2,142,600.- 3 5 7 ,108 436,536.8 440.475-7 5 4 2 ,4 5 9 .- 5 1 0 ,5 0 0 - 4 8 8 ,0 0 0 .- 5 6 9 ,5 0 0 .- 2,987.500.- 7. Receipts from other admin, departments 394.600 1 9 7 ,3 0 0 .- 32,884 9.683.4 9,783.9 25.422.7 1 3 ,5 6 7 5 25,152.6 1 7 ,7 0 0 .- 1 0 1 ,4 0 0 .- 8. T o b a c c o m o n o p o ly ( n e t ) ...... 1,357,900 6 7 8 ,9 0 0 .- 113,158 49,968.2 50,227.8 53.513.7 81,646.6 94,244.8 9 5 ,2 0 0 .- 4 2 4 ,7 0 0 .- 9. Salt monopoly (net) ...... 93,600 4 6 ,8 0 0 .- 7,800 8 ,8 9 1 .- 10,143-7 1 0,000.- 9,086.6 7,092.5 6,900.— 5 2 ,2 0 0 .- 0. O th e r m o n o p o lies ( n e t ) ...... 16,200 8 ,1 0 0 .- 1,350 5,058.2 4.704.4 4,496.4 4 ,2 0 2 .- 4 5 0 - 1 ,2 0 0 .- 2 0 ,1 0 0 .- 1. Productive undertakings (net) .... 120.600 6 0 ,3 0 0 .- 10,050 2.550.5 3,418.1 479.1 826.1 209.4 5 0 0 .- 8 ,0 0 0 .- T o ta l R e c e i p t s ...... 6,268,200 3,134,100.- 522,350 512,688.1 518,753.6 636.370.9 619,828.8 615,149.3 691 ,0 0 0 - 3,593,9oo.- T o ta l E x p e n d it u r e .... 6,881,700 3,440,800.- 573,475 591,819.8 588,845.3 640.634.9 651,371-8 625,191.7 7 4 5 ,3 0 0 .- 3,843,200.- D e f i c i t ...... 613,500 306,700.- 51.125 79,131-7 70,091.7 4,264.0 31,5 4 3 - 10,042.4 54,3oo.- 249,300.-

Dif f e r e n c e between Receipts and Expen­ d itu re on C u r r e n t A c c o u n t ...... — + 3,7° o -- — 2 5 ,3 0 0 .- — 60,900.- — 1 8 ,8 0 0 .- -j- 1 0 0 .- — 7,5o o .- 108 ,7 0 0 .- T ence T r e a s u r y D e f ic it provided for in th e e s t i m a t e s ...... _ 7 5 ,4 0 0 - 9 5 ,4 0 ° .- 6 5 ,2 0 0 .- 5 0 ,3 0 0 .- 9 ,9 0 0 .- 6 1 ,8 0 0 .- 3 5 8 ,0 0 0 .-

See note on the preceding page. Tax on Railway Traffic : Total estimate of yield of tax (as compared with figures in the programme) . . 77.262.— 6 5 ,9 0 0 .- 6 7 .0 0 0 .- 6 6 .0 0 0 .- 6 6 .0 0 0 .- 6 9 ,6 0 0 .- 41 1 .8 0 0 .- S h a re le ft in possession of S ta te R a i l w a y s ...... 5 8 ,0 0 0 .- 4 8 ,4 0 0 .- 4 8 .0 0 0 .- 4 8 .0 0 0 .- 4 8 .0 0 0 .- 5 0 .0 0 0 .- 3 0 0 ,4 0 0 .- S h are le ft in possession of S o u th e rn R a i l w a y ...... 17.262.- 15.5 00.- 17 .0 0 0 .- 17 .0 0 0 .- 17 .0 0 0 .- 1 9 .0 0 0 .- 1 0 2 .8 0 0 .-

Balance of Receipts 2,000.- 2,000.- 2,000.- 1,0 0 0 .- 1 ,0 0 0 .- 600.— 8,600.- Annex IV.

RETURN DATED MAY 31st, 1924, SHOWING REDUCTION OF STAFF.

A Central Administration.

Strength Reduction | Increase Strength on on D epartm ent between May 3rd, May 3rd and 31st, May 31st, 1924 1924 — 1924 +

Audit Office. . . 49 __ 49 Federal Chancellory . 3 5 9 2 — 357 » » (Foreign Affairs) . . . 5 0 0 I— 4 9 9 » » (Interior)...... 2 0 ,8 0 6 IOO— 2 0 ,706 » » (Justice)...... 6 ,1 7 9 6 — 6 ,1 7 3 Federal Ministry of F in a n c e ...... 9 .4 5 6 8 — 9 ,4 4 8 » » )) E d ucation...... 4,487 10 — 4.477 » » » Public Welfare .... 2 ,3 0 9 11 — 2 ,2 9 8 » » » Agricult. & Forestry . . 1,022 7 — 1,015 » » » War...... 6 ,2 5 6 114 — 6 ,142 » » » Commerce and Trans­ port (Commerce) . . 6 ,6 9 3 31 — 6,662 » » » Commerce and Trans­ V port (Transport). . . 102 2 — 100

Total A . . 5 8 ,2 1 8 292 57.926

B. State Undertakings.

Federal Chancellory (Undertakings)...... 242 2 240 Federal Ministry of Finance (Undertkgs) . . 9 .7 8 4 — 41 9,825 » » » Education : Administra­ tion of State Thea­ tres ...... 1,106 2 1,108 a » » Public Welfare: Hospitals and Federal Dispensa­ ries ...... 5.201 5,201 » » » Agriculture and Forests (Administration of Fo­ rests) ...... 2,370 39 2,331 « a » Commerce and Transport (Commerce) : Under­ takings ...... 1,237 9 1,228 » » Commerce and Transport (Transport) : Board of Federal Railways. . . 7I,5 i6 i , i 35 70,381 « » Commerce and Transport (Transport) : Central Postal Administration 30,264 259 — 30,005

Total B . . 121,720 1.444 43 120,319

1,401 + Total A . . 58,218 292 57.926 Grand Totals . . 179,938 1.693 178,245 C. Southern Railway...... 21,995 207 21,788 Annex V.

COMPARATIVE TABLE OF THE BALANCE-SHEETS OF THE NATIONAL BANK OF AUSTRIA.

Statement of, Accounts Statement of Accounts Statement of Accounts Statement of Accounts Statement of Accounts on June 7th, 1924 Headings on May 7th, 1924 on May 15th, 1924 on May 23rd, 1924 on May 31st, 1924

(Paper crowns) (Paper crowns) A s s e t s : (Paper crowns) (Paper crowns) (Paper crowns) Metal reserve * : 107,183,444,300 107,254,631,700 107,337.990,200 107,443,293,400 107,550,982,100 M inted and unm inted g o l d ...... 3,172,690,775,500 Currencies and securities (calculated in conformity with Art. 85 of the Statutes) 3,672,243,894,600 3,608,243,894,400 3,445,881,674,600 3,344,337.058,200

3.779.4 2 7 .338,900 3.7i 5.49S,526,ioo 3,553,219.664,800 3,451,780,351,600 3,280,241,757,600

2,124,816,151,400 2,224,698,611,900 2,390,496,829,300 2,658,955,858,300 2,708,268,207,000 1,492,943,500 1,462,743,500 Secured loans ...... 1,4 9 8 ,943.500 1,484,167,500 1,523,423,500 2,259,839.099,900 2,258,897,500,300 State debt in respect of former a d v a n c e s ...... 2.293.515,318,700 2,293.515,318,700 2,259,839,099,900 43,250,000,000 43,250,000,000 Buildings and installations...... 43,250,000,000 43,250,000,000 43,250,000,000 3,528,367,270,700 3,424,584,238,800 Other a s s e t s ...... 3,664,879,858,600 3,526,856,890,300 3,488,009,196,200 11,943,685,524,000 11,716,704,447,200 Total A s s e t s . . . 11.907,387,611,100 11,805,303,514,500 11,736,338,213,700

L ia b il it ie s : 432,000,000,000 Share capital (30,000,000 gold crowns) ...... 432,000,000,000 432,000,000,000 432,000,000,000 432.000.000.000 4,872,011,100 4,872,011,100 Reserve Fund •* ...... 4,872,011, :oo 4,872,011,100 4,872,011,100 7,554,620,292,200 7,390,109,758,600 Total value of notes in c ir c u la tio n ...... 7,145,069,558,900 7,032,286,697,100 6,839,821,503,800 682,263,718,300 Obligations in respect of current accounts and other obligations to be met at sight . 878,196,600,100 1,026,478,810,800 1,188,816,279,700 641.000.598.600 3,207,458 959,200 Other liabilities ...... 3,447,249,441,000 3,309,665,995,500 3,270,828,419,100 3,311,192,622,100 11,943,685,524,000 11,716,704,447,200 Total L ia b il it ie s . 11,907,387,611,100 11,805,303,514,500 11,736,338,213,700

(Gold crowns) (Gold crowns) (Golçl crowns) (Gold crowns) (Gold crowns) • The value of the metal reserve in gold crowns was: 7,461,339.82 7,468,818.20 Minted and unminted gold ...... 7,443.294-74 7.448,238.31 7.454.027-1° 232,245,629.04 220,325,748.30 Currencies and securities (calculated in conformity with Art. 85 of the Statutes) . 255,o i6,937-13 250,572,492.67 239,297,338.51 227,794,566.50 T o ta l ...... 262,460,231.87 258,020,730.98 246,751,365.61 239,706,968.86

** Accruing from the Bank’s operations during its first year.

G e n e r a l O bservations : In conformity with the Statutes (Art. 85) the value in paper crowns of the metal reserve is calculated from January 1924 onwards at th e rate of 14,400 paper crowns to the gold crown (average rate of exchange for the second half of 1923). Cold parity fixed for Customs from April gth, 1923 (invariable) = 14,400 paper crowns. Rate i>j interest of Bank since September 4th, 1922: On bills of exchange, warrants and other securities .... 9% since June 5th, 1924: 12 % On advances on Government stock and State Treasury Bonds 9 %% 12 V2 % On advances on other se c u rities...... 10% 13 % Annex VI.

POSITION OF THE NATIONAL BANK OF AUSTRIA. Extract from the Statutes :

"Article 85. — ... The total bank-note circulation, as well as all immediate liabilities, but exclusive of Federal Loan Debt (Art. s i concerning Treasury R o n rh \ shall be covered by the cash reserve to the extent of 20 % for the first five years..." ’ "Article 86. — ... In so far as liabilities to be covered in accordance with Article 85 exceed the cash reserve, they must be covered by bills discounted During a penod of five years ... loans on pledged movable property ... (Art. 64) may also be included in the cover of the note circulation."

Required Position on B a n k Co v e r by Statutes May 7th, 1924 May 15th, 1924 May 23rd, 1924 May 31st, 1924 J u n e 7th, 1924

In m illions of paper crowns j Metal r e s e r v e ...... 3.779-4 3,715-5 3,553-2 Holdings of b ills ...... 3 451.8 3.280.2 2,124.8 2,224.7 2,390.5 2,658.9 2.708.3 Loans on pledged movable p r o p e r ty ...... — i -5 1-5 1-5 i -5 i -5 100 5,905.7 5,941-7 5,945-2 6,112.2 5 .990.- In C irculation...... 7,145-1 7.032.3 6.839.8 Current a c c o u n t s ...... 7.554-6 7.390.1 — 878.2 1,026.5 1.188.8 641.- 682.3 Less State D ebt (former ad v an c es)...... — 2,293-5 — 2,293.5 — 2,259.8 — 2,259.8 — 2,258.9

100 5,729.8 5,765-3 5,768.8 5 .935-8 5.813.5 Metal Reserve : Circulation + current accounts — State D eb t ...... 20% 65-9 % 64-4 % 61.6% 58.1% 56.4% Metal Reserve : Circulation + current a c c o u n t s ...... - 47-1% 46.1% 44-2 % 42.1% 40.6% I Metal Reserve : C irc u la tio n ...... 52.8% 52.9 % 5 i-9 % 45-7% 44-4%