Financial Reconstruction of Austria (Fourth Year)

Transcription

1 [Distributed to the Members of the Council.] C il. Geneva, May 31st, LEAGUE OF NATIONS Financial Reconstruction of Austria (Fourth Year) FORTY-FIRST REPORT BY THE Commissioner-General of the League of Nations for Austria. (Period April 15th to May 15th, Fifth Month of Sixth Stage.) I. I n t r o d u c t io n. I have the honour to submit to the Council of the League of Nations my Forty-first Monthly Report, relating to the period April 15th to May 15th, During the period covered by the present Report, the Audit Office forwarded to me the closed accounts for the year 1925, which it had established. The Audit Office states that the budget administration, including the expenditure on investments, shows a surplus of 76.4 million schillings, but that, with the exception of about 5.5 million schillings, this surplus has gone to meet the deficit on current account transactions and to cover other operations not included in the budget administration. The current expenditure, amounting to million schillings, is 28.6 millions higher than the maximum fixed in the Agreement of September In the opinion of the Audit Office, this circumstance is due to certain causes, such as the rise in the exchange rate of certain currencies and the increase in unemployment, which are beyond the control of the financial authorities, and it cannot therefore strictly be said that the limits have been overstepped. The Audit Office calculates the amount by which the limit has thus been unavoidably exceeded at 36.5 million schillings, and this sum, if deducted from the total of the current expenditure, would reduce the amount of the other expenditure to millions, i.e., a figure 7.9 millions less than the maximum of million schillings laid down in the 1924 Agreement. The Financial Committee will have an opportunity of examining the closed accounts of the Audit Office at its next session at the beginning of June, and will be able to arrive at the necessary conclusions. I I. 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. For the month of April, there has been a reduction of 115 in the number of officials in the Central Administration and 92 in the State undertakings. The total number discharged since the financial reconstruction scheme was introduced is therefore 84, = 85,107. I I I. F in a n c ia l S i t u a t io n. In my last report, I drew the attention of the Council to the fact that the advances for investments of a clearly productive character in the first quarter of the current year, totalling... 29,466,236 schillings were considerably in excess of three-twelfths of the maximum sum of 85,000,000» which I undertook to release. The Government submitted to me at the beginning of April a further request for advances in respect of investments of a clearly productive nature during that month, totalling... 13,600,000» I agreed to this new advance, which brought the total to... 43,066,236 i.e., more than half the maximum. I have, however, called the attention of the Government to this circumstance and asked whether it considered it could keep within the budgetary limits lixed for expenditure on productive investments. S' d. N (F). 950 (A) Imp. A. Kondig. Publications of the League of N ations II. ECONOMIC AND FINANCIAL II. 17.

2 The movements of the blocked accounts for April are shown in Annex III. A ccount A shows the following receipts : Millions of schillings T obacco C ustom s Total Account B, Loans, showed a balance at the end of the month of about 277,140,100s chillings, including 221,267,600 schillings in foreign currencies. The National Bank has continued to grant credits to agriculture for the purchase of fertilisers, amounting in all to 3,094,000 schillings at the end of April. Purchases of International Loan bonds continued on the various markets during the course of the month. At the end of April the total amount bought represented about million schillings. * * * The preliminary budget for May shows a deficit of million schillings, as will be seen from the following table. I. Budget Administration. (a) Current administration : Millions of schillings E x p e n d itu re R ec eip ts S u r p lu s (b) In v e stm e n ts II. Current Account Transactions. Deficit S u r p lu s Total d e fic it The Closed Accounts for March 1926 (given in Annex IV) show the following results : Monthly preliminary budget Position from books Closed Accounts Cash position Millions of schillings Difference between estimates and closed accounts (books) I. Budget Administration. (a) Current administration : Expenditure.... R e c e ip ts Deficit.... Surplus.... (b) In v e s tm e n ts... O.9O I4.IO Total I : Deficit.... Surplus II. Current-Account Transactions. Expenditure.... R e c e ip ts Total II : Deficit I III. Administration as a Whole: Totals I and II: Total deficit IV. M o n e t a r y a n d E c o n o m ic S it u a t io n. Between April 7th and May 7th, 1926, the position of the National Bank changed as follows: As regards assets, the reserve (gold and foreign currencies) rose from million schillings to 508 millions, i.e. an increase of 1.3 millions. The difference in the amount of bills d isc o u n te d

3 is also inconsiderable (85.7 millions on April 7th and 84.6 millions on May 7th). Forward exchange continues to decline (29.2 millions on May 7th, as against 32.7 on April 7th). The same heading in the statement further showed, on May 7th, 30.2 millions in pounds and dollars not placed in the reserve (25.3 on April 7th). The metallic currency employed as cover was 1.7 millions on May 7th (1 million on April 7th). The State debt to the Bank and advances on pledged securities have altered very little. As regards liabilities, the circulation proper has diminished only slightly (790.8 millions on April 7th and on May 7th, while the total circulation, including deposits and current accounts, was somewhat larger (832.7 on April 7th and on May 7th). Banknotes in crowns represented an amount of only 28.3 millions on May 7th. The circulation of metallic currency increased by 2 million schillings during April. Parliament has adopted the bill increasing the issue of silver coins (see my previous Report). On the other hand, the issue limits for nickel and bronze coins have been lowered. * * * As a result of seasonal causes, unemployment continues to diminish in Austria, but the rate of improvement is now beginning to slow down. The number of unemployed in receipt of relief fell from 174,881 on April 15th to 159,181 on May 1st and 149,143 on May 15th. As against this decline, there has been an increase in the number of unemployed in receipt of exceptional relief. The unemployment figures are higher than those recorded in previous years at the same date. The number of unemployed in receipt of relief on May 15th was about : ,000 76, , ,000 * * The figures of Austria s foreign trade have now been published for February In the following table, the results for the first two months of 1926 are compared with those for the same period in 1925, the figures for January and February 1925 having been published together. Imports. (Millions of schillings) January 1926 February 1926 Jan.-Feb Jan.-Feb T o ta l Including : Live animals Foodstuffs and beverages Raw materials and semi-manufactured a rtic le s Finished artic le s Gold and silver (including currency) Exports. T o ta l Including : Live a n i m a l s Foodstuffs and beverages Raw materials and semi-manufactured a rtic le s Finished articles Gold and silver (including currency) Exports in February 1926 were therefore higher than in January 1926, but the total is less than for the corresponding months of Imports in January-February 1925 were below those for January-February This is due to the Customs tariff which came into force on January 1st, * * * During this period there has been a further decline on the Stock Exchange. The index number fell from 1,025 for April to 977 for May. The index number for wholesale prices dropped from in April to 17,056 in May. If 100 is taken as representing the prices calculated in gold in the first half of 1914, the index number was 118 in April.

4 4 - Annex la. STATISTICAL DATA IN MILLIONS I. P u b l ic F in a n c e s May 6th Stage th Stage th Stage April Annual basis on From January 1st, 1926 figures for 2nd halfyear 1925 ist halfyear nd halfyear 1924 (a) Gross receipts : C ustom s... I T obacco T o t a l (b) Preliminary monthly budgets : invest. invest. invest. invest. invest. Estimated expenditure* (105.1) (127.4) (101.1) (51.5) (52.9) Estimated receipts * ( 5.4) ( 4-8) ( 5.-) ( 4-6) ( 3-7) Deficit * IO Surplus * Total in v e s tm e n ts... (110.5) (132.2) (106 1) (56.1) (56.6) -- Surplus or 1 excluding deficit j investments ( + 4 1) (+ 30.4) ( ) ( ) ( 10.-) -- - (c) Closed accounts : March 1926 February 1926 Expenditure" (112.-) ' (118.8) (97 5) (47-5) (51-3) R e c e ip ts * ( 3.5) (3-8) ( 2.9) ( 5 -) ( 1.4) D eficit Surplus ** Total investments... ( I I 5-5) (122.6) (100.4) (52-5) (52 7) Surplus or ) excluding deficit J investments ( + 9-8) ( ) ( + 465) (+ 77-5) (+ 23.-) II. R eduction in the N umber of O fficials Central Administration and State Undertakings In April (Siidbahn 19) Personnel discharged Total discharged 85,107 (Südbahn 11,090) III. T rade and I ndustry. 2nd half-year 1925 ist half-year Monthly averages Trade balance: Value of im p o r t s... Value of e x p o r t s... Trade deficit (excl. of movements of precious m e t a l s ) M April 1926 End of March Fifth Stag e 1925 December June Fourth St. Dec Third Stage June D Number of unemployed receiving relief1... (Corresponding month in )... Number of travellers who stayed at hotels in Vienna... (Corresponding month in )... Official index of wholesale prices 1 Gold index (1st half 1914=100)... Exchange index Gold index (1st half 1914 = 100) , , , (148,434) ( ) ( ) (63,556) (98,060) (92,789) ( , ,186 (36,026) (3 8,9 6 6 ) (36.238) (41.186) (38.470) (30,132) I l 8 u s 125 Ml In millions of gold crowns Deposits in savings banks and 9 credit institutions (12 since ) ' > Millions of gold crowns at the rate of: N ational Bank of Austria 1 4,4 0 0 State Debt to the National Bank (advances during period of in flatio n )... Holdings of b ills... Gold reserve and foreign currency holdings... Value of notes in c ir c u la tio n... Percentage of circulation covered by metal reserve % i 5« * % 57-7% 5296% 58.2% % 1 At the end of the month. 2 During the month. 8 In the middle of the month.

5 5 FOR APRIL - MAY OF GOLD CROWNS rd Stage 2nd Stage] 1st Stage Begin, of Scheme ist half- 2nd half- ist half- Dec. ear 1924 year 1923 year i i R em arks Annex la. i = about 23.5 gold crowns $ 1 = about 5 gold crowns A d I (b). The Programme drawn up in 1922 and modified for 1925 by the Geneva Agreements of September 1924 provided for an Annual basis of (in millions of gold crowns) Draft Budget Fourth Third Second First 1925* stage stage stage stage E x p en d itu re (50.- invest.) R eceipts ( 4.2 invest.) Deficit Surplus Total investments: 54.2 Excluding investments, surplus equals * The figures in parentheses indicate investments expenditure reckoned under the heading either of expenditure, which is thereby increased, or under the heading receipts, in which case the net amount to be collected is reduced to the figures indicated (similarly as regards I (c)). Ad. I (c) Excluding temporary movements of funds advanced and subsequently repaid (current account transactions). See remark under I (b). * See remark under Annex lb, A d I (c). Strength on April 24/A, ,366 (plus 20,036 employees on the Sodbahn) Ad. I I. The Reform Programme provided for the discharge of a total of 100,000 officiait before July 1st, The Südbahn staff was not under the authority of the State administration when the work of reconstruction began Ad I I I Trade Balance The Statistical Federal Bureau has not yet received the relative data for the first three months of 1926 End of Begin, of Reform Scheme second St. Dec 1923 First Stage June 1923 December 1922 September *( 98,060 (117,144) 38,740 (22,301) (33.393) (43.244) 120,525 22, ,834 «2.834 January 7th, 1923 ' % 47-9% 29-4% The National Bank of Austria began operations on January 2nd, In accordance with the Statutes, the sums in gold crowns are calculated on the basis of the average rate of exchange for the second half of the preceding year, viz: F o r tq tj: For 1914: V paper crowns per gold crown. Up to March 1st, 1935 : 14,400 As from March 1 si, 191$. 1gold crown = 1.44 sch. j 1 sch. = grammes cf fine gold = For 1916, i gold crown 1 44 sch. i gold cr. = 10,000 paper cr.

6 Annex lb. 6 FIGURES IN MILLIONS ON WHICH THE CALCULATIONS m APRIL i Sixth Stage 1926 Fifth Stage 1925 Fourth Stage Monthly Averages May April From January ist, 1926 Second half-year 1925 First half-year 1925 Second half-year 1924 I. Public F in a n c e s (a) Gross Receipts : Customs... Tobacco l6.l I I.ÔO T o ta l (b) Preliminary Monthly Budgets : Estimated Expenditure* Estimated Receipts* D e fic it... Surplus... Total investments (I2.6l) (0.65) (13.26) (15 29) (0.57) (15.85) (12.13) (o.6o) (12.73) (6.l8) (6.35) (0-55) 69.30(0.45) 0.37 (6-73) (6.80) Surplus ( excluding or deficit 1investments ( + O.49) ( ) ( ) (+ 6.36) ( 1.19) (c) Closed Accounts : March 1926 February 1926 Expenditure *... Receipts *... Deficit*... Surplus*.... Total investments (13.44) (0.42) ( 12.68**) (13.86) (14.26) (O.45) 0 19 (14-71) (11.70) 7741 (035) 6.47 (12.05) 66.3 (5-7) (6.15) 693 (0.6) (0.1 7 ) ( + 3--**) (6-3) (632) Surplus ( excluding or deficit f investments (+ 1.18) (+14-52) (+ 5 58) (4-9-3) (+2.76) II. T r a d e, I n d u s t r y a n d F in a n c e. Index of Prices and Exchange. (a) Wholesale Prices: (Value in crowns or schillings (10,000 crowns) of what during the first half of 1914 was equal to 1 krone) F o o d stu ffs... Materials required in in d u s try... April In Sch. 159 I End of March In Sch. I Fifth Stage Dec June 1925 In Sch. I l6 In Sch. 2.CO 2.I I Total index... (b) Exchange: Value in paper crowns or schillings (10,000) of the American dollar (4.935 kronen before the war), average for the month Which gives value in crowns or schillings of the gold crown. Stock Exchange Index f (Value in crowns or schillings of what during the first half of 1914 was equal to 1 krone)... I.7 I I I I I.4 4 O.O Banks Value of deposits in the savings banks, nine Vienna banks and (since 1924) three other credit institutions. State Debts owing to the National B a n k... Holdings of b i l l s... Value of gold reserve and foreign currency holdings Notes in circulation... Millions of schillings (paper crowns respectively) O t At the middle of the month.

7 Qp SCHILLINGS 7 Annex lb. Gold Cr o w n s in A n n e x I a a r e b a s e d MAY Third Stage First half-year 1924 Second Stage Monthly Averages Second half-year 1923 First Stage First half-year 1923 Beginning of Plan. Dec IO.O R e m a r k s i SchiUing = grammes of fine gold g ld crowns 10,000 paper crowns Ad I (b). The 1922 plan, modified for 1925 by the Geneva Agreements of September 1924, provided for a monthly average during the: 1925 Budget * Stage Expenditure Receipts Investments,. included * (6.-) 52.7 (0-5 ) rd 2nd lit Million 34.5 schillings 3M I 4 5 Deficit Surplus O Total investments Excluding investments, surplus equals * The figures in parentheses indicate investments expenditure reckoned either under the heading of expenditure, which is thereby increased, or under the heading receipts, in which case the net amount to be collected is reduced to the figures indicated. (The same applies in the case of I c.) Ad 1 (c). Excluding sums temporarily advanced and refunded later (current account transactions) VJ 1 Oi 7 ~ * See remarks in note I (b). ** The share of the Federal Taxes retained by the Autonomous Organisations is for March million schillings The amount retained in February »» was reimbursed meanwhile. End of Beginning of Programme Fourth Stage Dec Third Stage, June 1924 Second Stage, December 1923 First Stage, June 1923 December 1922 September 1922 In paper cr. 20,012 22,416 In paper cr. 16, ,6 7 9 In paper cr. l 6,2 l 6 22,582 In paper cr. I 7. Ï 24 2 I,o 6 l In paper cr. In paper cr. 20,754 18,282 l 8, l 8 l 18,339 70,935 14, , , I4.4OO 71, ,100 _ I-I , Millions of schillings (paper crowns respectively) I I I I First balancesheet of the Austrian National Bank. (Jan.7th.1923)

8 Annex II. RETURN DATED APRIL 24TH, 1926, SHOWING REDUCTION OF STAFF. A. Central Administration. Department Strength on March 27th, 1926 Reduction 1 Increase between March 28th and April 24th, 1926 Strength on April 24th, 1926 Audit Office Federal Chancellory »» (Foreign Affairs) » u (In te rio r)... 18, ,684»» (Justice) Federal Ministry of Finance... 8,399 l »»» E ducation... 4,090 I 4,089»»» Public Welfare.... 1, ,876»»» Agriculture and Forestry »»» W a r... 4, ,947»»» Commerce and Transport ,893 Total A... 5i, , B. State Undertakings. Federal C hancellory Federal Ministry of F inance... 9, ,040»»» E ducation... 1,088 1,088 1.»» Public Welfare »»»»» (Administration of Federal hospitals) 5. I I 4 5,114»»» A g ric u ltu re... 2, ,017» m» Commerce and Transport Federal R a ilw a y s... 64, ,256 Post Office, telegraphs and telephones... 25,590 25,590 Salt m i n e s... 1, ,797 Total B , ,924 -f Total A... 51, ,442 Grand Total. 161, ,366 Südbahn... 20, ,036 92

9 Annex Ilia. AUSTRIAN TREASURY ACCOUNTS SUPERVISED BY THE COMMISSIONER GENERAL OF THE LEAGUE OF NATIONS, APRIL A c c o u n t A. C u s t o m s a n d T o b a c c o R e c e i p t s. Receipts from April is! to 30/A, 1926 : Schillings (thousands) Tobacco (registers 23,300.6)... Customs (» 17,753.1)... Portion in foreign currencies Portion in schillings (Value in thousands of schillings) 3i ^7.7 * 16,615.6* Total (» 41,143.7) Total receipts in April... Balance carried over on March 31st Available ,803.3* 30,803.3* E x p e n d i t u r b. From these available sums the amounts necessary to purchase foreign currency for the monthly service of the international loan (interest and amortisation charges) were taken during the month. Austrian Tranches A mounts $104,796. Total in thousands of schillings American $-oi, Belgian B. fr. 185,500. =* 49.1 British 104,901 1 is 5d = French F.fr. 1,312,617. =» Dutch D.fl. 22,265. = Italian ~ =» Spanish Pes = 393 ' Swedish S.cr. 97,207- = Swiss S.fr. 185,500. = Czechoslovak (I and II) C.k 5,060,732. 1,065.5 Total of the sums taken for the guaranteed l o a n s The balance of the amount paid into the schillings account was refunded to the Austrian T reasury , Balance on A pril 30/A, 1916 Through a mistake, the figures for April were been given for March The exact figures for March were : Portion in foreign currencies Portion in schillings (Value in thousands of schillings) Tobacco... 22,637.3 C u sto m s ,116.3 Total 22 38,753 6

10 Annex Illb. AUSTRIAN TREASURY ACCOUNTS SUPERVISED BY THE COMMISSIONER-GENERAL OF THE LEAGUE OF NATIONS, APRIL A c c o u n t B. Loans. R e c e i p t s. Exchange readjustm ents... Interest on the 30 million schillings advanced to the Post Office Savings Bank. Interest on the 30 million schillings during the time they are deposited at the National B a n k... Interest on fertiliser credits... Converted into schillings: $ 3 5 0, Balance carried over on March 3 1 s t... Available... Portion in foreign currencies (dollar value) , ,742.- Portion in schillings (thousands) , , ,580.4 E x p e n d i t u r e. Converted into schillings: $ Interest on the 30 million schillings advanced to the Post Office Savings Bank. Interest on the 30 million schillings during the time they are deposited at the National B a n k... Interest on fertiliser credits were handed back to the T re a su ry T r e a s u r y. Released, the advance granted to the Treasury in 1925 for electrification scheme Released to the Treasury against expenses of electrification effected in 1925 A sum of $1,041,495.30; ^110,000 and It. L. 1,544,259, or the counter-value of 11,600,000 schillings was advanced to the State for productive investments for April Sold, It. L. 7,000,000 of Italian Treasury bonds for cash: Italian L. 6,768, Received from the Post Office Savings Bank, but temporarily re-transferred at the end of the m o n t h million schillings. Re-purchases on the market of funds previously issued by the Confederation for the payment of clearing indemnities thousand schillings. The fertiliser credits have, during the month, accounted for thousand schillings ,644.0 Loan bonds bought in advance for amortisation: In the open Nominal Actual market value cost American.... $18,000 $18, Belgian.... B. F. 27,000 B. F. 21, including: The balance on A pril 30th, 1926, was therefore , deposited in the National Bank of A u s tr ia , ,241.1 deposited in the Post Office Savings B a n k... 30,000.- held in the form of loan b o n d s... 26, held in Italian Treasury bonds... 2,666.7 held in the form of clearing b o n d s advance to the State for the fertiliser c re d its advance to the State for productive investments in January, February March and April , ,366.2 Total Value: 277, , The Swiss Government loan of 20 million gold crowns has still to be collected.

11 Annex IV CLOSED ACCOUNTS FOR MARCH 1926 J'KKLIMINAKY Budget rod March 1926 Closed Accounts for March 1926 Excluding Including Cloeed accounts showing cash position Closed accounts ("buchmassig") Investments Investments Exd. FEDERAL E X PEN D ITU RE Invest. Investments IncJud. Invest. Excl. Invest. Investments Includ. Invest. Millions of tchijliofi Millions of schillings (1 schilling 10,000 paper crowns) 1. Service of the debt: (0) Reconstruction loan ( n e t ) (6) Other debts ( n e t ) (a) Pensions and indemnities (n e t) (6) Pensions of retired employees of the Federal Railways and the Südbahn (net) Army (g ro s s )... <> i Public welfare (n e t) Other administrative services (gross) Railways : (a) State Railways: Electrification I * Electrification I I Other investm ents (6) Südbahn (c h a rg e s arising out of existing agreements) O 3 9 > (c) Other r a ilw a y s Other undertakings showing a d e f i c i t O i Total E x p e n d i t u r e F E D E R A L R E C E I P T S C u s t o m s I m p o r t a n d e x p o r t d u t i e s O.bo T a x e s o n c o m m o d i t i e s D ire c t t a x e s Tax on railway traffic Taxes (other than tax on railway traffic) Total (1 to 6 ) Ltss taxes refunded to independent adm inistrations B ala n c e ? Receipts from other administrative departm ents T o b a c c o m o n o p o ly ( n e t ) S a lt m o n o p o ly ( n e t )... I O th e r m o n o p o lie s ( n e t ) I I. Other productive u n d e r ta k in g s ( n e t ) o i 55 Total R e c e i p t s Total E x p e n d i t u r e I. B u d g e t a r y D e f i c i t... _ « B u d g e t a r y S u r p l u s II. D e f i c i t o n C u r r e n t A c c o u n t S u r p l u s o n C u r r e n t A c c o u n t T o ta l D e f i c i t T o t a l S u r p l u s

12 Annex V. COMPARATIVE TABLE OF THE BALANCE-SHEETS OF THE NATIONAL BANK OF AUSTRIA. Headings Statement of Accounts on April 7th, 1926 Statement of Accounts on April 15 th, 1926 Statement of Accounts on April 23rd, 1926 Statement of Accounts on April 30th, 1926 Statem ent of Accounts on May 7th, 1926 In schillings (1 schilling = 10,000 paper crowns). Assets : Metal reserve: Minted and unminted gold... Currencies and securities (calculated in conformity with Art. 85 of the Statutes) ,830, ,871, ,830, ,836, ,830, ,953,i , ,106, ,830, , Other Bank Cover in conformity with A rt. 86 of the Statutes: (а) Currencies not included in the reserve * *... (б) Token m o n e y... (c) Bills discounted, warrants and other se c u ritie s... (d) Secured l o a n s... State debt in respect of former a d v a n c e s... Buildings and in s ta lla tio n s... Other a s s e t s ,702, ,667, , ,936, ,026, ,052, ,087, , , , ,931, ,246, , ,120, , , ,931, ,796, , ,803, j 8, ,294, ,931, ,796, ,656, , ,050, , ,294, ,931, i.947, , ,697, ,658, ,217, ,931, ,590, T otal As s e t s... I ,226,138, ,229,562, ,259,520, I,238,8i 8,20I.30 L i a b i l i t i e s : Share capital (30,000,000 gold c ro w n s)... Reserve Fund... Total value of notes in c ircu latio n... Obligations in respect of current accounts and other obligations to be met at s ig h t... Other lia b ilitie s... 43,200, , ,817, ,399, ,424, ,200, , , ,964, I 43,200, , ,028, ,806, , ,552, ,679, ,961, ,126, ,2 0 0, ,552, ,890, ,4 0 6, O 353,768, T o ta l L i a b i l i t i e s... * , ,226,138, I, ,421-1,259,520, ,238,818, Minted and unminted gold reckoned on the basis of: I kilogramme of fine gold = 4,715 schillings; 1 schilling = gramme of fine gold = gold crown = 10,000 paper crowns. Consisting at present exclusively of Kostgeschd/t currencies in dollars and pounds sterling. Accruing from the Bank's operations since January 2nd, 1923 (date of commencement). January 2801,1926, From to March 31st, 11)26 March 31st, 1926 Rate of interest of Bank : On bills of exchange, warrants and other securities... 8 % 7 y2 % On advances on Government stock and State Treasury Bonds... 8 l/2% 8 % On advances on other secu rities... 9 % 8 *4 %

13 Annex VI. POSITION OF THE NATIONAL BANK OF AUSTRIA Extract from the Statutes: Article he total banknote circulation, as well as all immediate liabilities, but exclusive of Federal Loan Debt (Art. 52, concerning Treasury Bonds), shall be covered by the cash reserve to the extent of 20 % for the first five years... Article Mb.... Liabilities to be covered in accordance with Article 85 must be entirely covered by the following assets: 1. By the metal reserve (Art. 85); 2. By bills discounted ; By currencies which cannot be included in the metal reserve in accordance with the provisions of Art. 85. By bills payable in Austria but expressed in terms of a foreign currency. 5. By token money, although silver money can be included in the metal reserve at the Bank s discretion. " During a period of five years loans on pledged movable property (Art. 54) may also be included in the cover of the note circulation. COVER * Required by Statutes Position on April 7th, 1926 j April 15th, 1926 April 23rd, 1926 April 30th, 1926 May 7th, 1926 Thousands of schillings»* Liabilities to be covered (Art. 85): In circulation... Current a c c o u n ts... State debt (former ad v an ces) , <) , , , , , , , , , , , , , , , , ,079.0 Assets available as bank cover (Art. 86): Metal reserve... Foreign currencies not included in the metal r e s e r v e... Token-money... Holdings of bills... Loans on pledged movable p r o p e r t y , , , ,120. I 24I.2 500, ,978.2 I ! , , , , , , , ,079.0 Metal Reserve proper : (a) Liabilities to be covered % 78.1 % 79 % % 77-6 % (6) Total Circulation (notes + current accounts) % 60.7 % % 6 0.I % 60.7 % (c) Net C irc u la tio n % 66.7 % % 6 2 % % The new Article 86 of the Statutes came into force on January 1st, 1925 (see 25th Report, Part IV). 1 kilogramme of fine gold = 4,715 schillings; I schilling gramme of fine gold gold crown 10,000 paper crowns.