[Communicated to I he Council and Official No. ; C. 137. M. 55. 1934. IT.A. the Members of the League.] [F . 1339-]

Geneva, April 25th, 1934.

LEAGUE OF NATIONS

FINANCIAL POSITION OF AUSTRIA IN THE FIRST QUARTER OF 1 9 3 4

TENTH QUARTERLY REPORT

By M. Rost van Tonningen, the Representative in Austria of the League of Nations.

CONTENTS. Page

1. I ntroduction ...... 2

2. F e d e r a l B u d g e t :

(a) F e d e ra l B u d g e t for 1 9 3 3 ...... 2 (b) Federal Budget for 1 9 3 4 ...... 4 (c) T h e F e d e ra l R a i l w a y s ...... 5 (d) A ssig n e d R e v e n u e s ...... 5

3- Local Finance ...... 6

4 . Central Bank Position :

(a) T h e S ta b ility o f th e S c h i l l i n g ...... 7 (b) T h e D o m e stic C re d it P o s i t i o n ...... 7 (c) S ta n d s till A g r e e m e n t...... 7

5- Economic Situation :

(a) F o re ig n T ra d e (S p ecialTr a d e ) ...... 8 (b) Production ...... 9 (c) E m p l o y m e n t ...... 9 (d) P r i c e s ...... 9 (e) S to c k E x c h a n g e ...... 10 (f) C o m m e rc ia l P o l i c y ...... 10

Ap p e n d ic e s :

I. A n a ly sis of A n n u a l a n d Q u a rte r ly B u d g e t A c c o u n t s ...... 12

II. Monthly Estimates and Provisional Results : December 1933-March 1934 . . . 14

III C e n tra l B a n k , I n d u s tr y a n d T r a d e ...... 16

Series of League of Nations Publications

II. ECONOMIC AND FINANCIAL 1934 II. A. 8 .

^ (A.) 1/34.—- Imp. néunies, S. A., Chambéry. T. INTRODUCTION.

The provisional figures at present available indicate that the year 1933 closed with a deficit of 81.57 million Schillings. Of the total yield of 309 million Schillings of the Foreign Guaranteed Loan, 296 million Schillings were utilised in consolidating short-term liabilities, setting the pledged revenue system in motion again and reducing the debt of the State to the National Bank. There remained at the end of the year a small balance of 12 million Schillings, which, together with the shortly expected 3 million gold Schillings of the Dutch tranche, can be a p p lie d to a further reduction of the floating debt. The Domestic Lottery Loan had a net yield of 173 million Schillings, part of which was utilised for a further reduction of the State d e b t to the National Bank. The greater portion of the balance will be used to finance the Government plan of public works contained in the extraordinary budget. The estimates for the first quarter of 1934 show a deficit of 64.71 million Schillings. The information at present available seems to show that the actual results will approximately agree with this estimate, in spite of lower receipts during February, due to the political disturbances which also caused a withdrawal of savings deposits, which was limited to Viennese savings b a n k s . To cover necessary expenditure for police and gendarmerie, the Government was obliged to establish a new tax on income for two years, which should yield 28 million Schillings in 1934- As new sources of income can be tapped only with great difficulties and the strain on the Treasury has long been great, the need for the very strictest economy and for further retrenchment is imperative. Traffic on the Federal Railways in January was not unsatisfactory, but did not come up to expectations in February. The Government has authorised the electrification of the southern slope of the Tauern railway. The work, which completes the electrification of this section, should be finished by the summer of 1935. The foreign trade returns for January and February 1934 show a continuation of the favourable trend, the import surplus for this period being 16 million Schillings, or 22 per cent smaller than in 1933. Unemployment remained well below the level of the previous year, and production statistics seem to indicate that the slight upward trend is being maintained. The devaluation of the Czech crown has adversely affected certain branches of the Austrian export tr a d e . Much is expected from the Rome conversations of March 13th to 17th and the Protocols then signed. The details of these agreements are already being worked out and the results should be known by May 15th. Summing up the experience of the first quarter of 1934, it can be said that the budgetary situation still causes much concern and calls for further retrenchment, while the general economic progress noticeable in previous months was checked by the political troubles of February, which have also had repercussions on the budget. The upward trend of exports is being maintained, but still wider markets are required if Austrian industry and trade are to recover even the most modest prosperity.

2. FEDERAL BUDGET.

(a) F e d e r a l B u d g e t f o r 1933.

The provisional results for 1933 as published by the Audit Court are as follows :

A. Ordinary Budget. Provisional results + Revised estima es Expenditure : (In millions of Schillings) P e rs o n n e l ...... 703.56 + I - ^ M a te r ia l...... 1,220.90 — 5-3°

T o ta l ...... 1,924.46 — 3-7°

R e c e ip ts ...... 1,842.89

D e f i c i t ...... 81.57 + 8 l'57

The deficit of 81.57 million Schillings was covered out of Treasury reserves (see Ninth Quarterly Report, page 3.) — 3 —

The difference between provisional results and revised estimates arose as follows :

Plus Minus Expenditure : (In millions of Schillings) Personnel : mainly larger military effectives and higher post office pension requirements ...... 1.68 —

M a te ria l :

Smaller State debt requirements ...... — 21-57 P olice a n d g e n d a r m e r i e ...... 6.35 — U n e m p lo y m e n t in s u ra n c e ...... 6.45 — T ou rism ...... 4-50 — N a tio n a l d efen ce ...... 2.89 — T o b a c c o ...... — 1.29 Posts and Telegraphs ...... — 1.32 Compensation of tax arrears of Federal Railways .. 4-95 — O th e r r a i l w a y s ...... — 1.26 Other expenditure ...... 0.68 5-76

27.50 31.20 N e t re d u c tio n in e x p e n d i t u r e ...... 3.70

The smaller State debt requirements were mainly due to the fact that, though the 1933 estimates provided for the first interest payment on the new Foreign Loan, owing to delays in floating the issue, the first coupon did not fall due until January 1st, 1934.

Plus Minus R eceipts : n millions of Schillings) D ire c t ta x e s ...... 0.03 — C u sto m s ...... — 20.50 E x cise d u tie s ...... — 5 7 9 T u rn o v e r t a x a n d tu r n o v e r ta x s u r t a x ...... —- 11.04 O th e r t a x e s ...... — 10.88 O th e r r e c e i p t s ...... 0-43 —

T o t a l ...... O.46 48.21 S h o rt fall of to ta l ta x r e c e i p t s ...... — 47-75 Deduct : S h a re s of local a u t h o r i t i e s ...... — - -1 0 .2 9

N e t ...... — 3746 C o n trib u tio n to w a rd s D e b t S e rv ic e ...... — 2-93 P o sts a n d T e le g ra p h s ...... — 17-56 Social in s u r a n c e ...... — 8.17 Contribution of municipality of Vienna to State e x p e n se s ...... — 1 5 8 7 T o b acco M o n o p o l y ...... 7.48 Credit balance arising out of foreign exchange transac­ tio n s ...... 10.15 --- O th e r ...... 0.25 6.20

T o t a l ...... IO.4O 9 5 6 7

N et re d u c tio n in r e c e i p t s ...... 85.

Extraordinary Budget. Provisional + Revised results estimates Expenditure : (In millions of Schillings) B a n k in g r e f o r m ...... 120.00 — 1.00 River and stream regulation and land improvement 12.56 — O.74 R o a d c o n s t r u c t i o n ...... 22.6l — 14.89 P o st O f f i c e ...... 2.6o — R a i l w a y s ...... 3.20 —

160.97 — 16.63

The full programme of public works contained in the extraordinary budget for 1933 was not carried out, and expenditure under this head was consequently smaller by 16.63 million chülings. Part of this sum has been transferred to the extraordinary budget for 1934 (see Quarterly Report, page 3). the 120 million Schillings required for the banking re-organisation were provided partly ut of earmarked cash reserves (45 millions), partly by short-term credit operations (75 1 lions). The remaining 40.97 million Schillings extraordinary budget expenditure were ne *rorri cash reserves and out of the yield of the Domestic Lottery Loan (see pages 4 and 5). — 4 —

C. Loan Account.

The yield of the two long-term loans floated by the State during 1933— the International Guaranteed Loan, 1933-1953, under the Geneva Protocol of July 15th, 1932, and the Domestic Lottery Loan, 1933-1983— foreseen in Article 6, III, of the same Protocol, is booked in the State accounts separately from the normal budgetoperations. The yield of these loans and their final utilisation as established by the Audit Court was as follows :

I. International Guaranteed Loan, 1933-1953 (see Eighth Quarterly Report, pages 9 and 10). (In millions of Schillings) N e t y ie ld ...... 308.63

Utilisation : Repayment of Bank of England ad v an ce ...... 126.96 R e p a y m e n t of T r e a s u r y b ills ...... 82.80 Repayment of short-term debts of the Federal Railways (in v e s tm e n ts )...... 5 4 .— Amortisation of “ B ” debt of the State to the National B a n k ...... 8.50 Released to the Treasury in order to facilitate the opera­ tio n of th e p le d g e d re v e n u e m e c h a n is m ...... 23.89 296.15

T h e re m a in in g b a la n c e of ...... 12.48

and the yield of the Dutch tranche (3 million gold Schillings) which was authorised by the Netherlands Government in February 1934, can be applied to a further reduction of the floating debt under the terms of the Geneva Protocol of July 15th, 1932.

II . Domestic Lottery Loan, 1933 (see Eighth Quarterly Report, page 11). (In millions of Schillings) Nominal value, 220 million Schillings at 98 215.60 Is su in g c o s t s ...... 6.40 Conversion of pre-war debts (Arrosierung) ...... 36.60 4 3 -

N e t y i e l d ...... 172.60 Of which there had been paid up by the end of 1933 ...... 141.99 W hich was utilised as follows : Amortisation of “ B ” debt of the State to the National B a n k ...... 30.— Extraordinary budget expenditure in 1933 24.55 Reserve held for future use in agreement with the National B a n k ...... 20.—

T o ta l in 1 9 3 3 ...... 74-55

T h e b a la n c e o f ...... 67.44 and the amount which will be paid up during 1934 (172.60— 141.99) .. .. 3°^>I

w h ic h m a k e t o g e t h e r ...... 98.05 will be utilised to finance the extraordinary budget of 1934.

(b) Federal Budget for 1934. A. Ordinary Budget. _ . Expenditure Receipts Deficit F ir s t q u a r te r : (In miiii0ns of Schillings) 1933 (provisional results) ...... 491.73 416.37 75.36 1934 (e s tim a te s )...... 507 84 443-13 64.71

The above figures show that the estimated ordinary deficit for the first three months of the current year, normally a period of high outgoings and low receipts, is more than 10.6 million Schillings lower than that actually incurred during the corresponding period of 1933- Increased requirements, mainly State debt, national defence and Federal Railways, are more than compensated by the greater estimated yield of Customs and of the turnover taxes, and by the contribution of the municipality of Vienna. Monthly instead of half-year > contributions of the Railways towards the service of the State debt cause a temporary amelioration of the budgetary situation as against 1933. made for But if, so as to make a truer comparison with the foregoing year, allowance is the new items— contribution of the municipality of Vienna ( + 13.4) and the monthly paynien^ of the Railways (+ 9)— the comparable figure for the deficit during the first quarter of *934 increased by 22.4 million Schillings to 87.11 million Schillings, or 11.75 million Schilling5 m , than in 1933. To this should be added additional requirements for police and nati defence of 11.5 million Schillings. This imperative expenditure was provisionally place the extraordinary budget, as there was no ordinary receipt to cover it. The latest measures of the Government, mentioned below, now allow this class of expenditure to be included in the ordinary budget. In 1933, however, the deficit for the whole year was only some 6 million Schillings greater than that accumulated during the first three months. The growth of the deficit during the remainder of 1933 was only kept under control through the exercise of the strictest economy and by continuous budgetary revisions. The deficits of the last years have placed a very great strain on the Treasury, and it is more than ever necessary to remove from the State budget all unessential items of expenditure and to exercise the utmost prudence in authorising any new claims from the spending departments. By the Decree of March 26th, 1934, the Government has taken steps to cover the increased expenditure for police and national defence arising mainly from the events in February. The Decree in question creates a so-called “ Security tax ” for the years 1934 and 1935, which is in every respect a duplication of the “ Emergency income tax ” established by the “ Budgetsanierungs-Law ” of October 3rd, 1931. The new tax is expected to yield 28 million Schillings during 1934, and, being based on an already existing framework, should entail no extra administrative expense. Incomes below 2,400 Schillings per annum are untaxed, and the rate rises from 0.55 per cent on incomes up to 8,000 Schillings per annum to 6 per cent on incomes above 100,000 Schillings per annum.

B Extraordinary Budget.

During the first quarter of the year, the extraordinary budget contained, besides the normal expenditure on the Government’s public work schemes, financed out of the yield of the Lottery Loan, expenditure for the maintenance of order for which momentarily no cover could be found. The new tax Decree mentioned above has now provided this cover and the extraordinary budget is again balanced ; the extra items have been transferred to the ordinary budget. Expenditure on public works proper during the first three months amounted to 18.6 million Schillings and was covered by an equivalent grant from the yield of the Lottery Loan.

(c) T h e F e d e r a l R a i l w a y s .

December | January February

166,765 137,072 Goods traffic (total loaded w ag o n s) ...... \ j q ^ 1933 130,572 161,989 1934 151,967 134,174 (In millions (In millions of Schillings) Traffic receipts : of Schillings) 23.O 20.0 G o o d s ...... ) 1932 1933 1 9 5 ' 1933 23-7 1934 22.1 I9 .9

10.6 9.9 q.o P a s s e n g e r s ...... j *-*32 1933 8 ! 1933 11.4 IQ34 9-7 8.6

The annual accounts of the Federal Railways for 1933 are not yet available. It is not likely that the final figures will be very different from the provisional results, given in the N inth Quarterly Report (page 4), which showed a total deficit of 105 million Schillings. Traffic figures for January 1934, shown in the table above, are not unsatisfactory. There was a noticeable decline in February, which, the administration assumes, is attributed to the political events of that month. No March figures are yet to hand, but it is hoped that they will justify the above assumption. Passenger receipts did not quite reach the level of the foregoing y ear. In February, the Government authorised the electrification of the south slope of the Tauernbahn out of the yield of the Domestic Loan. Work was immediately begun and should be finished in time for the summer traffic of 1935. The cost is estimated at 7.5 million Schillings, of which 4 million Schillings will be spent during the present year.

(d) A s s i g n e d R e v e n u e s .

The yield of the revenues pledged for the service of the 1923-1943, 1930 and 1933-1953 Loans and the service requirements of these loans during the first quarter of 1934 were as follows : Yield Actual loan service requirements (In millions of (In millions of Schillings) Schillings) C u s t o m s ...... 38.55 1923-1943 L o a n ...... 24.62 T o b a c c o ...... 63.07 1930 L o a n ...... 8.76 I 933-I 953 L o a n ...... 7.05 T o t a l ...... 101.62 —------T o t a l ...... 40.43

I he loan service was covered more than two and a-half times by the yield of the pledged revenues. — 6 —

3. LOCAL FINANCE.

B u d g e t s o f t h e “ L â n d e r ” f o r 1934.

Vienna Other Lander Total

R e c e ip ts : (In naillions of Schi Hngs) L o c a l t a x e s ...... 1 2 0 .5 7 IO 4.92 225-49 Shares in joint taxes ...... 53-34 74 ■ 16 127.50 Compensation for the taking over of the Political A d m in is tra tio n ...... 2 4 .7 1 24.71 Y ield of p r o p e r t y ...... 17-34 6 .4 7 23.81 R e c e ip ts of u n d e rta k in g s , e t c ...... 6 0 .1 1 5 .0 6 6 5 -I 7 C o n trib u tio n s, re fu n d s, f in e s ...... 29-45 45-97 75-42 O th e r r e v e n u e ...... 0 .0 3 0-39 O.42

T o ta l r e c e i p t s ...... 2 8 0 .8 4 2 6 1 .6 8 542.52

Expenditure : G e n e ra l A d m in is tra tio n ...... 77-59 4 5 -o i 122.60 H e a lth a n d W e lfa re ...... 1 1 7 .9 4 75-24 193.18 C h u rc h , E d u c a tio n , F in e A rts ...... 57 • 74 1 0 0 .5 5 158.29 A g ric u ltu re ...... 0 .6 7 n -53 12 . 20 In d u s tr y , C o m m e rc e a n d M i n i n g ...... 0 .1 1 1 .1 2 1-23 C o m m u n i c a t i o n s ...... 2 6 .4 0 1 0 9 5 37-35 P u b lic D e b t ...... 8 .5 1 1 8 .2 0 26.71 P r o p e r t y ...... 8 .6 2 3 • 93 12-55 Expenditure of the undertakings, etc ...... 2 8 .2 8 4 -8 3 33-11 Other expenditure ...... 0 .0 8 0 .1 7 0.25

T o ta l e x p e n d i t u r e ...... 325-94 271 53 597-47

D eficit ...... 4 5 -io 9-85 54-95

Covered by : C ash r e s e r v e s ...... 0 .4 9 2 .7 4 3-23 L o a n s ...... 4 4 .6 2 0 .7 2 45 ■ 34 S u n d ry e c o n o m i e s ...... 6-39 6-39

T o ta l ...... 45-11 9-85 54-96

Note.—The above figures include, wherever possible, the receipts and expenditure of undertakings, etc. Loans for covering the deficit are planned by Vienna and K ârnten (0.72 million Schillings), but no further steps have yet been taken. Allowance is made for the effect in the Viennese budget of Federal decrees altering muni­ cipal taxation and imposing an annual grant of 36 million Schillings (see Ninth Quarterly Report, page 8).

The above table shows that the provinces other than Vienna have a joint deficit for 1 9 3 4 of 9.8 million Schillings, or about 3.6 per cent of their total expenditure. By introducing a new consumption tax on wheat, similar to that introduced over a century ago in Tirol and more recently in Salzburg, K ârnten has reduced the original estim ated deficit of 3.3 million Schillings to 1.98 million Schillings, and proposes to raise a loan of 722,000 Schillings to cover extraordi­ nary expenditure included in the foregoing figure. Steiermark can draw on previously earm arked cash reserves of 2.7 million Schillings, which have now become free, as partial coyer for an estimated deficit of 5.5 million Schillings. The remaining provinces, with the exception of Vorarlberg, show smaller deficits, amounting in all to 2.4 million Schillings, w hich, like Steiermark and Kârnten, they hope to cover by administrative economies. The budget of Vienna shows a deficit of 45.1 million Schillings after allowing for the contribution of 36 million Schillings to the Federal finances (included under “ General Administration ” in the above table) and the readjustment by the Federal Government of certain municipal receipts. It is proposed to cover this partly out of cash re se rv e s (0.5 million Schillings), partly by floating a loan of 44.6 million Schillings, though no details of this operation have yet been made known. These figures do not allow for the suspension of amortisation for two years on the greater part of the Vienna Dollar Loan, made possible by the success of the conversion scheme (see below, page 10), which permits an immediate economy of about 1.6 million Schillings. The budget table for 1934 is cast in a new form, which groups together the gross receipts and expenditures of the undertakings which had previously either been included w ith other items or for which only the net profit or loss had been given. The following figures, wher 1931 = 100, show the shrinkage of the provincial finances during the last four years. Expenditure Receipts Vienna Other Lânder Vienna Other Lânder 193 1...... 100 100 100 100 193 2...... 77 94 85 94 193 3...... 74 85 83 87 193 4 ...... 65 80 66 81 The Viennese budget has fallen to two-thirds, that of the other provinces only to four-fifths, of the 1931 measure. Calculated on the same basis, the share of Vienna and of the Lander in joint Federal taxes fell during the same period from 100 to 48 and 73 respectively. There is little doubt that, under the new Constitution shortly to be published, it will be necessary to revise fundamentally the present financial relations between the State and the provinces. Advantage could be taken to obtain greater simplicity and uniformity in provincial fiscal procedure.

4. CENTRAL BANK POSITION.

(This chapter has been drawn up in consultation with the Adviser to the National Bank, >1. Maurice Frère). (a) The Stability of the Schilling.

Average “ Private Clearing ” Rates. Zurich Paris London New York 1933 : December . . .. I 75 -6o 35-54 29 . 80 578.15 1934 : January ...... I 7 5 .I 9 35-51 2 8 .8 8 569.OO F e b ru a r y •• 174 35 35-56 27 .62 547■ 5o M arch 1 7 4 .2 8 35-59 27-56 539-57 (Source : National Bank Monthly Bulletins.) The official price for gold, which since February 6th is based on the Paris instead of, as formerly, on the London price, has remained unchanged at 128 paper Schillings for 100 gold Schillings (21.17 grammes) since July 1933. The political troubles of February did not react in any way on the stability of the Schilling. The Vienna foreign exchange market continued to function smoothly and the foreign exchange necessary for the service of the foreign debts of the State could be acquired without any difficulty. (b) The Domestic Credit Position.

1933 1934 End of : End of :

First Second Third Fourth January February lia rch quarter quarter quarter quarter

(In mil lions of Sc killings)

1. N o te c irc u la tio n ...... 919 893 943 952 909 993 981 2. Sight liabilities ...... 170 217 83 142 187 138 154

3. T o tal 1 a n d 2 ...... 1,089 I,IIO 1,026 1,094 I.O96 1,131 1.135 4. Blocked foreign debt accounts in c lu d ed in 2 ...... 83 I0 8 17 14 14 15 15

5. T otal 3 m in u s 4 ...... I,0 0 6 1,002 1,009 I,o 8 o 1,082 1,117 1,120 6 . Gold and foreign exchange 189 196 197 202 206 211 21^ 7. Bills d is c o u n te d ...... 287 275 225 275 262 297 308

The volume of discounts increased during February owing to the withdrawal of savings deposits caused by the political troubles of that month, which caused simultaneous withdrawals of the deposits of the savings banks at the other banks. The demands on the National Bank came particularly during the second and third weeks of the month, when discounts rose by 26 million Schillings. The increase of 8 million Schillings during the fourth week was below normal expectations, so that apparently end-of-month requirements were partly met out of funds previously withdrawn. During March, the situation remained unchanged, and end-of-quarter requirements caused a further slight increase of discounts. While gold remained unchanged during the quarter, foreign exchange holdings increased by 11 million Schillings. Savings deposits, as mentioned above, diminished during February by some 61 million Schillings, from 2,084 millions to 2,023 millions. Examination of the detailed figures shows that this movement was limited to the Viennese savings banks, where deposits fell 55.7 million Schillings, from 759.3 millions to 703.6 millions. The provincial figures show little change, and in some cases deposits increased. The withdrawals are clearly of a local political nature and the monev should soon return into circulation.

(c) Standstill Agreement.

The standstill agreement with foreign banks which expired in January has been provisionally extended without any modification. , . /ne short-term foreign indebtedness of the [Austrian banks (excluding the Creditanstalt), ich, on December 31st, 1932, still amounted to 115 million Schillings, had been reduced by * arch 31st, 1934, to 32 million Schillings. 5- ECONOMIC SITUATION.

(a) Foreign Trade.

Austrian Foreign Trade (Special Trade) according to Countries of Origin and Destination in Percentages of Total Imports and Exports.

1928 1929 1930 1931 1932 1933

0/ Exports to : % % %% % /o H u n g a r y ...... 8-5 7 .6 6-5 7 .0 9-2 10 . 0 R o u m a n ia ...... 5 9 5 i 4 .6 3-4 3-4 5-6 C zech o slo v ak ia ...... 12 .6 13-5 12.1 1 1 .8 1 0 .6 7-8 Y ug o sla v ia ...... 7-5 7-7 8 .0 7-5 7-4 7 .0

T o t a l ...... 34-5 33-9 31.2 29.7 30.6 3°-4

G e r m a n y ...... 1 8 .5 1 5 9 1 7 .6 1 6 .2 I 7 -5 I 5-7 F ra n c e ...... 2-4 3-4 4 .2 4-7 4 -i 3 9 G re a t B r i t a i n ...... 3-6 4-5 5-4 6 .9 3-7 4 3 I t a l y ...... 7-9 9 .0 9-4 8 .2 9-6 10.7 P o la n d ...... 5-5 4 .8 4-5 4-3 4 .2 6-4 Sw itzerland ...... 6 .0 5-7 5-9 7 .2 7 .8 7-7 Other countries ...... 2 1 .6 22 .8 2 1 .8 2 2 .8 22 5 20.9

100 100 100 100 100 100

General total in millions of S c h illin g s ...... 2,250 2,220 1,880 1,327 786 815

Imports from : % % % % %% H u n g a r y ...... 8 .6 9 .9 1 0 .4 9 .0 9-7 11 -3 R o u m a n ia ...... 4-5 3-8 4 .8 5-5 5-8 4-5 Czechoslovakia ...... 1 8 .3 17 ■ 8 T7 -5 1 6 .6 15-2 13.2 Yugoslavia ...... 4 .1 4 .0 5-5 4-3 7-7 8.9

T o t a l ...... 35-5 35.5 3 8 2 35-4 3 8 .4 37-9

G e r m a n y ...... 1 9 .9 21 0 21.2 22.1 20.4 19.6 F ra n c e ...... 2 .8 2 .7 2 .6 2 .6 2 .0 2.7 Great B ritain ...... 3-0 3 6 3-4 3-4 2-7 3 -T I t a l y ...... 3-4 3-6 3-9 4-3 4-9 4.2 P o la n d ...... 9-3 8 .8 8 .0 8 .1 7 .6 6-5 Switzerland ...... 4-9 4-5 4 .2 4-2 3-5 3-7 Other countries ...... 2 1 .2 2 0 .3 1 8 .5 1 9 .9 2 0 .5 22.3

100 100 100 100 100 100

General total in millions of S c h illin g s ...... 3,317 3,3 i 8 2,739 2,210 1,400 1,187

Trade Balance : (In millions of Schillings) Hungary . . 8 8 .1 1 5 8 .6 - 1 6 3 .1 - 1 0 4 9 6 3 -5 — 5 3 - 9

R o u m a n ia 1 6 .2 — 7 - 5 1 5 .2 — 44-9 - 76 54-2 Czechoslovakia 315-5 2 9 2 .3 — 2 5 1 .6 — 211 1 2 9 .9 — 94-5 Y u g o sla v ia 33-7 37-2 + i - o 4 5 0 .1 — 4S.5

T o ta l — 3 8 6 .1 4 2 8 .9 — 4 5 8 .6 — 388 2 9 7 .7 — 204.4

Germany .. — 2 3 9 .3 3 4 3 -o — 2 4 8 .5 - 273 1 4 8 5 — 105.7 — 1.0 F ra n c e — 37 i 12 . I + 7 •1 + 5 4-9 — 1.8 Great Britain . — 6 5 .1 2 0 . 9 + 8 .5 4- 16 8-5 I t a l y ...... + 6 7 .7 79.2 + 6 9 .3 + 14 7-2 4- 36.5 P o la n d 1 8 4 .4 — 25-6 — I 7 7 •5 — 133-4 — 120 72 - 5 Switzerland — 2 9 .6 23. 2 — 6 .5 4- i + 1 2 .4 4 - T9 -° — 92.8 Other countries — 2 0 0 .4 1 6 4 .8 — 97-2 — J37 1 1 0 .6

General total — 1 ,0 6 7 .4 — 1 ,0 9 8 .1 — 375-8 — 859-3 883 6 i 3-3

As the above table shows, trade with the Danubian countries as a group has more or less kept its relative position during the last tw7o years, but its distribution has suffered a change, — 9 — the main features being the increased proportion of Austro-Hungarian trade and the decline in exchanges with Czechoslovakia. Imports from Yugoslavia, mainly animals and foodstuffs, kept their level in spite of the general shrinkage in foreign trade, thus improving the country’s relative position. The increase in the volume of relative exports to Italy and the great improvement in the Italo-Austrian trade balance should also be noticed. The apparent rise in exports to Poland in 1933 is almost entirely due to bullion movements. Imports from Germany in 1933 include 8 per cent bullion. The foreign trade returns for the months of January and February show that the favourable trend has been maintained. The import surpluses were respectively 34 and 24 million Schillings, as against 42 and 32 million Schillings in 1933. This 21.6 per cent improvement in the trade balance accompanied an increase of 11 per cent in the value of the total goods exchanged, imports and exports both exceeding the 1933 level, exports of finished goods for the two months being 21 per cent higher.

(b) Production.

The production figures for 1934 are, so far, only available for the iron and coal industries. The production of iron ore fell to 15 thousand tons during February from the comparatively high level of 30 thousand tons in January. Increased orders should ensure better employment in this industry during the coming months. Steel and iron production reached a slightly higher level than during the last months of 1933. The coal-mining industry enjoyed favourable conditions during January, but since then lessened production of lignite has caused a reduction in employment. The advantage given to Czechoslovak producers by the depreciation of the Czech crown is making itself felt in the textile and in some other Austrian export industries. The trend of industrial activity in most other branches appears to be not unfavourable.

(c) Employment.

On February 15th, when unemployment reached its highest level, there were 358,365 persons receiving benefit, or 43,800 less than on the same date in 1933. At the end of March, the total had sunk to 325,657, or about 54,000 less than in March 1933, distributed among the industrial districts as follows (the figures in parentheses are for 1933) : Vienna (town), 130,919 (139,655) ; Vienna (district), 18,658 (22,791) ; W iener-Neustadt, 24,715 (31,755) ; St. Pôlten, 17,683 (22,982) ; Gmünd, 5,021 (6,852) ; Eisenstadt, 7,370 (9,760) ; Linz, 35,941 (42,118) ; Salzburg, 11,389 (12,426) ; Graz, 39,854 (49,855) ; Klagenfurt, 14,452 (17,884) ; Innsbruck, 14,082 (16,481) ; Bregenz, 5,573 (7,734). The following figures, together with column 13 ot Appendix III, throw further light on the situation of the Austrian labour market during the past year :

Insured persons in employment Employed in Of which 1932 1933 Voluntary Labour previously (In thousands) Corps in 1933 unemployec J a n u a r y 803 684 - — F e b r u a r y . . 791 680 —— M arch S o i 701 — A pril 853 732 ---- M a y ...... 871 752 1,185 5 2 0 J u n e . . 862 753 2,701 1,317 J u l y ...... 826 752 7,264 2,816 A u g u s t 819 754 12,412 4,186 September 819 758 17.344 5.709 O c to b e r 800 755 20,359 6,036 November 768 728 19-133 5.352 December 708 681 16,454 3,788

Stricter adm inistration of the law explains to a large extent the smaller number of insured Persons in 1933, as all persons with a non-insurable subsidiary source of income (agriculture, domestic service, work in a family concern, railway pensioners, etc.) have been excluded. Under a Decree of March 9th, all employers of labour, including the State Monopolies, the Railways and agricultural and forestry undertakings, if employing twenty-five or more Persons, are obliged, after May ist, to take into their pay one demobilised unemployed member the Auxiliary Defence Corps for every tw7enty-five persons in normal employment. The muster of Labour is authorised to modify the above measure in individual cases. Great Clrcumspection will have to be exercised in questions concerning skilled and unskilled labour, ''orks where female labour predominates, etc., particularly in view of the inelastic state of the • ustrian employment market.

( d ) P r i c e s .

During the first quarter of 1 9 3 4 , the wholesale price index rose from 1 0 8 . 1 to 1 1 3 . 1 . The cre a se is mainly due to the higher price of foodstuffs, their index rising from 9 9 to 1 0 5 . 3 , IO ---

potatoes and wheat being particularly affected. The industrial goods index rose slightly, from 126.5 to 128.8, mainly because of the higher price of cotton, wool, flax and leather. The retail-price index remained constant, and the cost-of-living index and the sensitive index of the Institut für Konjunkturforschung showed no change for the quarter.

(e ) Stock Exchange.

The Viennese Stock Exchange improved noticeably during the quarter under review, the Austrian share index of the Federal Statistical Office rising from 435 in January to 483 in March. The iron and metal industry group showed the greatest improvement, but all categories of shares showed the effects of the general trend. The volume of transactions is still very small, but interest is again being shown for shares which had long remained unquoted. The bond market was also improved, partly influenced by the success of the Vienna Municipal Loan conversion.

The Conversion of Private Foreign Loans.

The opportunity offered by the uncertain future of the dollar was taken by the Vienna municipality and by an important power company in Tirol, the “ Tiwag ”, to convert their outstanding funded dollar debts into Schilling liabilities. This could not be done until the success of the Domestic Lottery Loan had proved the confidence of the public in the gold Schilling clause contained therein. The “ Tiwag ” proposal involved a simultaneous reduction of interest from 7.5 and 7 to 5.5 per cent, 630 and 600 Schillings respectively being offered for every S100 face value. The municipality of Vienna proposed to lengthen the period of amortisation, but left interest untouched at 6 per cent and offered 600 Schillings for $100. The average exchange rate in February was 539, the new gold parity being 537. The results of these conversions now available are more or less up to expectations. Of $5.3 million “ Tiwag ” bonds outstanding, of which about $1.1 million were estimated to have been in Austrian hands, only So.5 million, the minimum required by the company, are said to have been presented for conversion. The conversion of the Viennese loan was, however, a success. $26.1 million were outstanding, of which about half was supposed to be in Austrian hands. $19.9 million have been presented for conversion, so it appears that, not only all the Austrian, but also some foreign bondholders have availed themselves of the offer. The very much relaxed transfer regulations and the increased opportunities for disposing of nominally “ blocked ” Schillings have no doubt had some influence on this determination. The result brings considerable immediate financial relief to the municipality of Vienna owing to lighter sinking-fund conditions, but its effect on the Austrian balance of payments will be very much slighter. The nominal currency of the loan is in this respect of no importance, and the exchange bv an Austrian creditor of a dollar bond for a gold Schilling bond has rather the effect of increasing the rigidity of the financial mechanism of the country, the foreign indebtedness for the country remaining unchanged. The relief afforded by the depreciation of the dollar would have accrued without any conversion.

( f ) Commercial Policy.

The Rome negotiations of March 13th to 17th last, betw’een Austria, Italy and Hungary, aimed at developing and intensifying the commercial relations between these three countries on the basis of the resolutions of the Stresa Conference and of the Italian Danubian memorandum of September last. Agreement was reached on the following fundamental points affecting Austria's trade with Italy and Hungary : (a) The scope of the existing commercial agreements, based on railway rate and credit preferences, is to be widened so as to facilitate and increase mutual exchanges. The success of the arrangements in force up to now' is shown by the figures in the table in the section on foreign trade above. (b) The resolutions of the Stresa Conference and the Italian Danubian memorandum had a lre a d y foreseen the granting of preferences to Austrian goods. Italy, which had not until now granted any such preferences, has now declared itself prepared to establish unilateral preferential Customs rates for such goods as had hitherto been exported to Italy 111 unsatisfactory quantities. Agreement between the individual parties concerned will in future be sought in those cases where Italian interests had hitherto made difficult the granting 0 special facilities under the existing arrangements. , (c) Various measures have in the past been taken to raise the price received by 1 e Hungarian wheat producer. Austria had granted a preferential import duty, Italy purchases wheat from Hungary at more than world prices, while through the “ Boletta ” the Hungana State had itself given an export subsidy. , These heterogeneous measures are now to be co-ordinated, so that the sacrifices made the importing countries may bring a greater’advantage'to thelHungarian farmer in the snap of higher prices. , use (d) A reduction of harbour dues in Trieste and free-harbour and b o n d e d - wareno facilities, if desired, are to be considered, with the intention of intensifying traffic to Ita Adriatic ports over the Austrian railways. — II —

The technical negotiations on the above lines will commence shortly in Rome and must be ended by May 15th. The three Governments wrill appoint a permanent commission to observe the course of mutual trade exchanges and to make concrete proposals for their improvement. The second important event of the period under review is the entry into force on March 23rd of the Franco-Austrian agreement concerning the preferential treatment of Austrian timber exports to France. It provides for a preferential Customs drawback of 50 francs per ton on timber imports from Austria up to a quota of 152,000 tons annually. This should enable Austria to compete in price with other producing countries. It is hoped through this agreement, the working of which is to be supervised by a mixed commission, to increase the timber exports of the western provinces, hitherto only slightly affected by the improvement of the Italian market. The movement of French imports of Austrian timber are shown in the table below. It will be noticed that the quota granted is more than double French purchases of timber in Austria during 1933 :

Austrian Timber Exports to France.

1929 1 9 3 ° 1931 1932 193 3

Tons (thousands) ...... 227 229 213 117 72 Percentage of total exports 1 0 .7 13-i 17-5 14 .1 7-4 Millions of S c h illin g s ...... 35 31 23 10 6 Appendix I.

ANALYSIS OF ANNUAL AND QUARTERLY BUDGET ACCOUNTS.

1933 1934 Fourth quarter First quarter

1932 RECEIPTS 1933 1933 1934 Provisional Estimates Estimates results Provisional Provisional Provisional Estimates Estimates results results results

O rdinary Budget. (In millions of Schillings) A. Administration : Direct t a x e s ...... 268.50 82.09 67.08 73-18 71.73 C u s to m s ...... 200.00 i 79-5o 232.00 56.62 43-73 40.83 4 5 5 0 Excise d u tie s ...... 160.66 15 4 8 7 162.76 41.74 44-73 45.11 32-33 32.97 Turnover tax ...... 139.00 13398 129.00 40.40 33-50 38.13 3 3 0 9 35 5 1 Turnover tax, em ergency s u rta x ...... 124.00 117.98 33.10 27-72 Taxes on transactions, legal fees, etc. h i .97 99.62 2 7.18 26.32 25-35 24.80 O ther receipts ...... 0.50 2.40 3-17 0.67 0.41 0. 78 0.46 0.80

Total taxes ...... 1,017.13 969.38 1,015.69 27563 244.22 253-36 232.96 240.51 Deduct: Shares of local a u th o r i ti e s ...... 174-50 164.22 163.75 52 • 65 39-37 38.88 47.89 42.59

Total : State t a x a t i o n ...... 842.63 805.16 851.94 222.98 204.85 214.48 185.07 19792

Receipts of Social Adm inistration ...... 200.53 192.36 197.72 52.55 47-43 45-42 52.32 47-53 O ther adm inistrative receipts ...... 18.84 30.32 36.98 1 5 6 7 Contribution to w arls D ebt S e r v i c e ...... n o . 63 107.70 11 1 0 0 43-11 28.16 29-31 12.66 21.66

Total receipts of the Administration...... 1.259-39 1,205 •22 1,261.56 337.48 310.76 326.19 26572 29532

B. Monopolies : Tobacco ...... 315-36 307.87 3H -55 78.42 75 46 8l . 26 67 73 67.58 S a l e ...... 2 9 7 0 28.81 7-34 7.17 8.68 7 7 4 7 4 5 Lotteries and g u n p o w d e r ...... 61.95 58.71 55-30 17.32 13-01 13-87 14.69 1 5 0 8

Total : Monopolies ...... 407.01 395.80 395-66 103.08 9564 103.81 90.16 90.11

C. Public Undertakings: Posts and T e le g r a p h s ...... 230.70 2I 3 -H 55-53 54 38 53-32 53.58 50 • 70 F o r e s t s ...... 7.89 8-43 8.85 2.89 2-43 3 04 Federal t h e a t r e s ...... 6 43 5-72 6-55 r -54 1.49 1-75 i -54 1 7 3 Other ...... 16. 7 j 14-51 15 o(, 4.11 3-88 3-89 3-64 3 3 7

Total : Public Undertakings ...... 261.74 241.80 255-76 64.07 62.18 62.00 60.48 57.70

D. Riilvoxys : Federal r a i l w a y s ...... Other railways ...... ° ' 0 ’ - 0.03 — 0.02 —

Total : R a i lw a y s ...... 1 0.02 0.07 - 0.03 — 0.02 0.02 — Total ordinary receipts ...... 1,928. xG 1,842.89 ■ ,012.08 504.66 468.58 492.02 416.38 443-13 I ANALYSIS OF ANNUAL AND QUARTERLY BUDGET ACCOUNTS (continued).

Fourth quarter First quarter

EXPENDITURE (including investments) Provisional Estimates Estimates results Provisional Provisional Provisional results results results

(In millions of Schillings) Ordinary B udget. A. Administration : 82.60 86.16 94.OO 19-59 23-73 23.50 21 . 09 25-71 1 63 I .24 1-54 Foreign Affairs ...... 5 02 5.80 6. 23 12.94 12.85 12.44 12.54 J u s t i c e ...... 50.31 49-85 50.35 12.57 0.99 1.04 Supreme o r g a n s ...... 4.81 4.67 4.78 2.83 2.70 3.78 2.75 Chancellor’s office ...... 9-56 10.59 25.12 25-05 27-47 I n t e r i o r ...... 91.14 95-57 95.91 23-43 117.68 103.69 100.51 Social A d m in is tra tio n ...... 443.42 449-33 385.26 131.91 8.18 8.28 10.52 A g r i c u l t u r e ...... 31-50 31-45 39.IO 9-13 7-39 55-02 58.97 56.48 13.55 17-75 17-33 11.74 Commerce and T ra ffic ...... 17.30 18.83 Education, Science, Church ...... 7 3 0 6 72.93 71.50 20. 83 19-15 1 931 60.87 57.86 20.15 14-54 11.83 1711 14.92 F i n a n c e ...... 0.71 0.63 Subsidies to Postal Savings Bank ...... 3.00 2.50 0-75 0.71 0.75 6. 62 6.93 6.30 6.18 Payments to local authorities ...... 26.31 26. 67 210.00 5I .78 52.16 52.38 53 99 54-21 P en sio n s...... 211.70 212.37 2.66 0.74 0 7 4 Charges under the Peace Treaty ...... 2.23 39.18 51.88 50.44 S i -50 60.66 D ebt S e r v ic e ...... 233-27 340.04 343 02 336.06 361.52 37171 Total : Administration...... i , 383-7o 1,381.15 1,354.26

B. Monopolist : 27.80 29.80 24-93 Tobacco ...... 108.77 107.42 25 34 23-73 4 0 4 3-96 4.04 S a l t ...... 14-73 14. 82 1 4 3 3 3.64 3 5 9 10.37 10.72 8.92 8.66 Lotteries...... 40.42 37 79 35 76 11-55 1.52 1.84 1.14 1-33 G u n p o w d e r ...... ^ 5-28 5.28 5 0 1 1.25 41.78 46.32 37 38 3 8 9 6 Total : Monopolies...... 169.20 165.31 166.14 43 73 C. Public Undertakings : 227.84 227.90 61.77 57.14 57-25 56.57 56.48 Posts and T e le g r a p h s ...... 5.08 19.58 19.19 4 .88 5-39 5 3 1 4-37 F o r e s t s ...... 2.57 Federal t h e a t r e s ...... 2.54 2-74 2-73 4.04 3 8 1 4.08 Other undertakings ...... 15-65 15.14 4-13 3-79 68.86 67.48 68 .21 Total : Public Undertakings 274-55 273.66 273.36 73-49 69-34 D. R ailw ays : 35-01 26.08 21.00 2 5 0 0 Federal r a i l w a y s ...... 84-95 21.13 4.96 3 3 6 3.10 Charges under the Südbahn Convention 14-75 14.69 15-51 3 3 8 1.16 0. 69 0.66 1-95 0. 86 Other railways ...... 5.96 4 7 0 3.61 2 5 2 0 30.10 25-35 28.96 Total : R a i lw a y s ...... 100.71 104 3 4 119.12 41.13 481.82 507.84 Total ordinary expenditure ...... 1,924.46 1,912.88 496.44 480.81 491-73 504.66 468.58 492.01 416.37 443-13 Total ordinary receipts ...... Ifâ'M 1,842.89 1,912.98 — 64.71 Ordinary budget balance ...... — — 81.57 4- 0.10 + 8.22 — 12.23 + 10.19 — 75-36

E xtraordinary B udget. 120 00 Finance ...... — National Defence ...... 7-55 — 5-12 Commerce and T r a ff ic ...... 37-50 22 . 6l 38.16 10. 56 12.37 5 -io Agriculture ...... 13-30 12.56 5 2 5 2. 60 0.65 1.28 Posts and T e le g r a p h s ...... 5 8 0 46.90 7.08 Railways ...... 3-20 i 3.20 3-20 — — 140.00 26.13 Total extraordinary expenditure* 177.60 160.97 103.06 18.82 21.47 ______Total extraordinary receipts ...... — 11.25 12.25 — — 140.00 — 26.13 ______Extraordinary budget balance ...... — 177.60 — 160.97 — 1 0 3 0 6 — — 7.57 — 9.22 - 90.84 Total budget balance ...... — 177.60 — 242.54 - 102.96 + 8.22 - 19.80 + 0.97 — 2 1 5 3 6 Appendix II.

MONTHLY ESTIMATES AND PROVISIONAL RESULTS.

December January February March

RECEIPTS 1932 1933 1933 1934 1933 1934 1933 1934

Provisional Provisional Provisional Provisional Provisional Provisional Provisional Estimates Estim ates Estimates Estimates results results results results results results

Ordinary B udget. A. Administration : Direct tax es ...... 25.90 22.50 23.08 27.69 26.00 24.96 23-51 21.00 1 5 5 8 21.98 24.73 20.49 15-00 15.09 13.74 12.94 15.00 13.29 14.14 14.50 Excise duties ...... 13-97 16.48 17.09 10.53 n -43 10.77 10.63 Iu rn o v e rta x ...... 14.51 12.56 9.80 10. 50 1331 I urnover tax, emergency surtax 11.65 10.37 S. 23 9-30 9.29 9-13 laxes on transactions, legal fees, etc. 8.86 8.00 8.96 8.»s 9.20 9.67 8-59 7.80 7-54 7.91 7.80 O ther receipts ...... 0.23 0.13 0.28 0.16 0.13 0.26 0. 27

Total t a x e s ...... 94.67 83.31 90.26 83-57 84.90 84 .94 73-97 74 • 49 67. 86 75-42 81.12 Deduct : Shares of local a u th o r itie s ...... 16.43 1 5 2 9 15.02 16.18 12.41 12.43 16.00 15 • 10 14.74 15-71 15-08

Total : State t a x a t io n ...... 78.24 68.02 75.24 67.39 72.49 57-97 59-39 53-12 59-71 66.04 1 Receipts of Social Adm inistration ...... 16.19 14.97 13.48 19-45 15.88 — 18. 18 1 6.62 ._ 14.68 15 • 03 Other adm inistrative receipts ...... 7-73 1 5 4 1 6.62 — 4 .69 8.35 4-37 8.80 Contribution towards D ebt S e r v i c e ...... 36.14 11.24 11.99 6.16 9-13 — 3-27 9.26 — 3-22 3-27

Total receipts of the A dm inistration...... 138-30 107.15 116.12 108.56 - 84.11 93.62 - 81.98 93-14

B. Monopolies: T o b a c c o ...... 28.22 27. 62 29-15 21.27 24.38 22.87 25.37 2 5 0 2 S a l t ...... 2. 36 2.57 2-47 2.64 2.58 2.49 2.40 8.63 5 -4i 5-75 5-66 5-17 5-27 6.66 4-83 4.90 2-37 5.08

Total : Monopolies...... 39-27 35-39 37-47 29.55 29.74 32.35 30.39 27.87 30.26 30.22 32.50

C. Public Undertakings : Posts and T e l e g r a p h s ...... 21.50 19-39 19.49 17.18 15.40 15-32 18. 69 18. 20 F o r e s t s ...... 0.71 0.65 0.58 0. 65 Federal t h e a t r e s ...... 0.55 0.50 0.68 0. 66 0.63 0.55 0-55 Other ...... 1.62 1.50 1.60 1.23 1.09 1.17 i .09 1.25 1.19

Total : Public Undertakings ...... 24.99 23.33 23-I 3 22.09 19-55 - 17.41 17.56 - 20.98 20.59

D. R ailw ays : Federal r a i l w a y s ...... Other railways ...... O.OI — — 0.02 — — —— — ——

Total : R a i lw a y s ...... 0.01 -- 0.02 - - — - -- — Total ordinary rcccipts...... 202.57 165 S7 176.72 151.28 15785 131.91 139.05 — 133-18 146.23 ^ 3 j^ ^ ^ Ê s TÏ m A . T J £ S A NJ) PKOVtSIONAL RESULTS (conti-n-ued.).

------December J a n u a r y F e b r u a r y March i 1933 1933 1934 1933 1934 1933 1934 EXPENDITURE 1932 (including investments) Provisional Provisional Provisional Provisional Provisional Provisional Provisional Estimates Estimates Estimates Estimates results results results results

Ordinary B udget. (In nillions of Schillings) A. Astation : 6-43 8.41 8.41 7.71 9.26 6. 61 7.84 6.76 8 . 61 Foreign Affairs ...... 0. 36 0-59 0-59 0.50 0. 40 0. 50 0 4 3 0.54 J u s t i c e ...... 4-39 4-54 4-50 4.11 4 • 13 — 3-95 3-93 ■— 4-38 4.48 Supreme o r g a n s ...... 0. 25 0-35 0.34 0. 36 0 3 5 — 0.35 0.37 - 0.39 0. 30 Chancellor’s office...... 1. it) i 52 1 . 14 i -33 0.45 1-33 I n t e r i o r ...... 7-94 8.56 8-43 7.58 8.32 7 4 6 9-33 7. 62 9.82 Social A d m in istra tio n ...... 44-78 38.07 37-90 42 00 41.21 — 40.29 38 • 03 — 49.61 43-6h Agriculture ...... 2.70 2.87 3. 26 2.17 3 07 — 2.66 3-53 — 2.56 3-92 Commerce and T ra ffic ...... 4.19 8.67 8.40 3-73 4-47 3-87 4.41 4 • 14 Education, Science, C hurch...... 8 .5 1 8.26 8.23 5 8 3 5-85 5-71 5 • 95 5-/6 7-03 F i n a n c e ...... 8. 60 5 1 5 2-47 4-85 4 .78 5-93 4.41 6-33 5 ■ 73 Subsidies to Postal Savings Bank ...... 0.25 0.21 0.25 0-21 0.25 0-21 Paym ents to local authorities ...... 2.40 2.76 2.76 2.18 2 .01) 2 .06 2.06 2 . 0 6 P ensions...... 16. 68 16. 96 16.90 18.60 18.67 i / - / 3 17. 78 17. 67 1/. /6 Charges under the Peace T re a tv ...... 0-37 0-44 0.45 0.03 O . 03 18.81 18.64 14.65 16.63 15.07 18.72 Debt S e r v ic e ...... n -33 21.79 25-31 .

Total : Adm inistration...... 120.34 126.17 123.09 122.99 128.62 — 113.87 II4.92 — I24-06 128.17

B. M onopolies : Tobacco ...... 8.18 10.44 12.02 8-54 8.17 8.39 7.32 7-93 8.13 7.87 8.83 1 25 1 4 3 1-35 1.32 1.16 1.42 i - 39 1.21 I .32 2-53 1.70 1.40 1.83 1-75 1 .61 2 • 00 1 .77 2 .06 5 • 09 5-14 0.4.S G u n p o w d e r ...... 0.42 0. 56 0.83 0.40 0.41 0. 50 0.40 0.44 0. 54 0. 34

Total : Monopolies ...... 12. 38 14-13 15.60 11.99 11.63 11.82 10. 88 11.56 12.12 14-51 15-77

C. Public Undertakings : — — 19.36 19.01 Posts and T e le g r a p h s ...... 21.58 19.50 10-87 18. 62 18.70 18.60 18.77 i .85 1.08 1.42 1.69 1-45 0 .88 0.84 0.84 Federal t h e a t r e s ...... 0.97 0 .85 1.02 0.96 0 .89 — 0.89 1-45 1 3 5 j .58 i 25 1.36 1 . 32 i • 38 1.-3 1 ■ 34

22.64 22.25 22.73 22.98 22.84 Total : Public Undertakings ...... 25.85 23.68 24.48 22.25 - 1 1 D. Railways : — / . GO 9.46 14-41 7.00 8 ■ 33 7 . oo 8. 33 8-34 Charges under the Sudbahn Convention ...... 2 5 7 3.38 3 -3b ' 0.64 O. 28 0.67 0. 30 Other railways ...... 0.47 0.22 0.21 8 .6 l 7.67 8 .6 3 JO.04 11 .72 Total : R ailw ays...... 37-10 13.06 1 7 9 8 7.64 — — 157-84 Total ordinary expenditure ...... 195-67 177 0 4 181.15 164.87 17I -50 — 154 ■67 — 151.28 131.91 139-05 I 33 . 18 146.23 Total ordinary receipts ...... 202.57 165.87 176.71 157.85

— 22.76 — iN .79 — 39.01 — 32.27 Ordinary budget balance ...... + 6.90 — II -17 — 4-44 — 13-59 — 13-65 — -

E xtraordinary B u d g e t . 140.00 Finance ...... ------O. 23 6.23 National Defence ...... 1.60 Commerce and T r a ff ic ...... 4-53 3 05 I - 50 2.15 Agriculture ...... ISS 1.76 0.46 Posts and T e l e g r a p h s ...... 0. 32 - o t R ailw ays...... — 3.20 3.20 - 5.85 - - - 10.09 140.00 10.60 Total extraordinary ez penditure ...... — 9 • 5° 8.23 - —- 5-44 — 8.18 Total extraordinary receipts ...... — 8-93 ______

Extraordinary budget balance ...... — — 1.32 + 0.70 - — 10 • °9 — — — 5-44 — - * 4 ° 0 0 - 10(10

— — 23.74 — ---- 22.76 — 24-23 42.87 Total budget b a l a n c e ...... + 6.90 — 1249 — 3-74 — 1 3 5 9 “ 17901 Appendix III.

F oreign T rade (Merchandise only) E conomic I ndices N ational Bank

Savings Pro duction of Gold Bank depo­ Value W eight Railway Cost-of- Industrial circulation Discount Wholesale Other Government sits (mil­ (millions of Schillings) (thousands of tons) goods production Bills price index C otton-yam Unemployed exchange discounted Debt lions of traffic Electric sight Per cent January- receiving Schillings)6 (million power exchange Per cent June 1914 July 1914 spindle11 Cellulose liabilities Excess net ton 1923-1931 (million benefit Im ports Exports Imports Exports «= IOOa (wagons) (thousands) Im ports 1923-1931 (In millions of Schillings)

21 / 2 3 4 5 6 7 S 9 10 11 12 13 14 15 16 17 18 19 20 (End of year (Monthly average) (End of year or month) (Average) or month) 1924 3,447 1,970 i , 477 j 8,951 2,565 297.9 136 — 83 84 1,245 __ 95 488 — 188 218 894 55 n -57 19~5 2,833 3,246 3 0 7 2 136 — 96 1,464 — 150 499 59 180 188 945 54 10.86 1926 2,766 i ,733 1,033 8,263 332.1 96 95 1,522 177 537 143 124 177 985 55 7-50 1927 3,088 2,037 1,051 8,754 3,929 350.0 133 118 1,605 80 464 274 132 173 1,045 44 6 -34 1928 3,239 I,03i 4,718 351-4 108 119 1,725 91 156 411 386 208 116 1,124 37 1,755 1929 2,188 1,074 4,109 3 6 9 4 130 i n 1,870 96 164 334 306 1,158 37 7.33 1930 2,699 1,851 848 3,5i 5 314.0 117 i n 104 i ,779 97 208 412 518 148 1,183 35 5-75 2,419 1931 870 7,996 2,538 106 91 96 1,796 93 253 26 908 96 i , 3H 7 0 4 2,025 1932 1,383 764 1,879 108 79 95 90 304 188 379 663 1,132 17 6.83 i ,959 1933 1 i , i 45 773 372 5,688 2,098 209.9 108 105 — — 329 189 13 275 624 1,095 17 5 2 3 1,988 1 1 1932 : .. 132 59 73 569 120 201.2 114 109 86 104 1,789 99 358 266 12 884 96 1,206 22 8 1,962 11 .. 64 62 4S3 117 180.5 108 90 1,665 92 362 258 877 96 8 1,977 I ll 133 65 68 498 ! 3I 205.8 113 108 85 112 1,672 88 352 240 867 96 1,137 21 7 1,991 IV .. 125 66 59 486 151 199-5 112 107 86 109 1,714 86 304 215 863 96 1,112 19 7 1,990 V . . 119 62 57 476 165 116 75 99 1,618 88 198 874 95 18 7 1,965 VI 116 62 54 545 183 206.7 115 109 75 99 1,605 87 265 192 881 93 I,III 17 7 i ,949

VII . . 109 57 52 531 164 204.3 112 108 70 82 1,707 86 266 190 883 92 1,097 i 7 7 i ,946 VIII 55 47 500 193.7 74 87 1,688 86 269 189 872 1,080 18 6 1,940 IX 98 65 33 458 151 205.4 n o 108 74 89 1,399 85 276 189 867 92 1,075 i 7 6 1,938

X . . 106 70 36 494 197 266.2 i n 108 78 88 1,668 89 298 189 336 663 1,080 17 6 1,946 XI . . 107 68 39 528 171 233-7 79 8.3 1.399 94 330 189 336 663 1,077 18 6 1,958 X II 116 65 51 529 165 217.8 108 107 70 78 100 368 188 379 663 e 1.132 18 6 i,95o

1933 : 1 I .. 87 45 42 490 107 179-3 108 106 72 68 i,7i 7 96 398 188 317 662 1,053 18 6 2,022* II .. 83 5i 32 428 1 8 3 5 105 73 7c i ,552 82 189 300 661 1,043 18 6 2,039 I ll .. 99 61 38 435 147 198.2 107 104 72 74 1,783 90 380 189 287 660 1,089 17 5 2,02 5

IV . . 83 60 23 366 173 179-7 107 104 74 80 1,793 84 351 189 279 659 1,091 17 5 2,022 V . . 92 63 29 202.7 108 105 76 87 87 321 189 659 17 5 VI . . 96 64 32 440 195 201.3 109 106 78 88 1,951 82 308 189 7 275 659 i , n o 17 5 2,040

VII . . 96 63 33 486 209 206.5 i n 105 75 88 1,839 80 301 189 8 239 659 1,101 17 5 2,032 VIII .. 85 67 18 463 186 203.5 108 105 86 118 1,860 84 189 8 188 654 i 7 5 2,023 IX .. 9i 77 14 479 201 108 105 80 122 1,865 88 279 189 8 225 624 1,026 19 5 i ,997

X .. 107 78 29 587 210 267. 8 109 106 88 124 1,886 95 280 189 8 227 624 1,042 18 5 1,943* X I . . 115 75 40 569 194 249.9 108 105 95 2,108 98 300 189 8 218 1,030 18 5 X II . . i n 72 39 523 176 228. 4 108 106 89 2,133 100 336 189 13 275 624 1,095 17 5 1,988

1934 1 I . . 1 9i 57 34 452 149 225.9 109 106 93 357 189 17 262 624 1,095 17 5 .7,084 11 .. 85 61 24 410 156 110 105 78 352 189 22 297 624 1,130 17 5 2,023 I l l .. 113 326 189 24 308 624 1,135 17 5 j ' 105 ' 1 '

1 Provisional figures only. a Source : Bundesam t tilr Statistilc. 1 Seasonally corrected index. *e " Institxit tùr Konjunlttxirforschung.