His programme was to be an honourable mediator in the German-Bohemian quarrel, to extend the railway system, and to satisfy the wishes of the Poles in the waterways question by an expenditure of 73.4 million kronen on canal construction in Galicia, to which Galicia was to contribute only 9.4 million kronen, the State finding the other 64, and by an expenditure of 125 millions on river improvements, 99 of which would be contributed by the State.
The deposits and withdrawals were respectively, in thousands of kronen: After the heavy withdrawals of 1912 the decline in deposits together with a continuance of heavy withdrawals in 1913, is a clear sign of economic depression.
By the same law, besides other less important provisions, the amount of the bank's tax-free issue of notes was raised from 400 to 600 millions of kronen, and the conditions formerly attached to the issue of 10 and 20 kronen notes were sensibly relaxed, A 4% bank-rate had been uninterruptedly in force from May 8 1908 to Oct.
The Vienna Creditors' Association for the protection of claims in bankruptcies had in 1909- It fresh failures with liabilities of 45, 40 and 43 millions of kronen respectively.
In 1912 the value of fresh claims involved rose to 112 millions of kronen; in 1913 it still amounted to 73 millions.
In each of the five years, ending Dec. 31, from 1909 to 1913 the loans granted by the Austro-Hungarian Bank against securities amounted to 90, 149, 187, 355 and 311 millions of kronen successively.
Notwithstanding the fact that the banking law raised the tax-free note issue in 1911 from 400 to 600 millions of kronen, in 1913 the bank was unable to avoid incurring tax payments for notes issued in excess of the amount allowed free of tax, a state of affairs which had no parallel in the bank's history.
On July 23 1914 the gold reserve of the Austro-Hungarian Bank amounted to 1,238 millions of kronen, its silver to 291 millions.
The note issue was as follows: Dec. 31 1914.5,137 millions of kronen " 8222; 1915 .
The value of the American dollar, in terms of AustroHungarian paper kronen with legally fixed value, varied in fact, as shown by the Swiss exchange market, as follows: - State Finances.
From the year 1902 to the financial year 1914-5 the State revenues doubled, rising from 1,730 millions of kronen to 3,460 millions of kronen, but this increase in revenue could only be achieved by placing an extraordinary strain on the taxable capacity of the country.
Of the estimated net revenue of 2,102 millions of kronen, 432 millions (20.5%) came under the head of receipts from direct taxation, 905 millions (43%) under the head of receipts from indirect taxation and taxes on commerce, while 294 millions (14%) were the proceeds of State property and State institutions.
In this way a State debt of 35,069 millions of kronen was accumulated.
The budgets of 1919 and 1920 disclosed deficits of 5 billion and 3 billion kronen respectively, but in that for 1921 the revenue slightly exceeded the expenditure.
Besides these ten-mark pieces, there are Doppclkronen (double crowns), about equivalent in value to an English sovereign (the average rate of exchange being 20 marks 40 pfennige per LI sterling), and, formerly, half-crowns (halbe Kronen =5 marks) in gold were also issued, hut they have been withdrawn from circulation.
In 1871 a common system for the whole empire was established, the unit being the Mark (= I 1~d.), which was divided into a hundred Pfennige: a gold currency was introduced (Doppel-Kronen =20 M.; Kronen 10 M.); no more silver was to be coined, and silver was made a legal tender only up to the sum of twenty marks.
For the time until the 1st of July 1908, however, the old gulden were left in circulation, payments made in them, at the rate of two kronen to one gulden, being legal up to any amount.