8o MODERN MONETARY SYSTEMS 
the law foreign bills and foreign currencies were to be handed 
over to the Banking Office, which was thus likely to succeed 
in getting together a large portfolio of foreign bills. 
Thus, when M. Rasin after some months of hard work 
was about to leave the Finance Ministry, the currency 
reform which had been contemplated might have been 
said to be under way without having yet attained its 
object. The currency, although it had been only slightly 
reduced, was at all events regulated ; but no stable con- 
version rate had been contemplated, and there was neither 
a gold stock nor credit sufficient to cover any conceivable 
demand for foreign exchange. But some valuta had already 
been collected, and a small reserve of gold and foreign 
currencies had been constituted. 
The first effects of this policy showed themselves clearly 
in the exchange curve. As from October 28th, 1918, the 
Czech crown had been quoted at Zurich separately from 
the Austrian crown, considerably to its advantage (30 
francs for 100 crowns as against 26 francs). Thereafter 
the confidence inspired by Rasin’s vigorous policy helped 
to increase the disparity between the two currencies, the 
Czech crown appreciating to 33°5 francs on May 17th, 
1919, while the Austrian crown dropped to 21 francs on 
the same day. In April the Foreign Exchange Control 
Office had stepped in to break speculation,’ and it did so 
again in May to check a rise which was too sharp and to 
arrest it when a rate of 34 francs was reached. 
But from the moment of Rasin’s fall (July 191 9) to the 
middle of 1921, the Czech crown, while remaining at a 
higher level than the Austrian crown, described a curve 
nearly parallel to that of the mark, declining almost with- 
out interruption until February 1920; when it fell to 
5-65 francs, recovering till May in the same year with the 
mark, which it then again followed in a decline. | 
This prolonged dependence of the Czech crown on the 
1 Tt had suddenly caused the Czech crown, which had fallen to 21 
centimes, to rise to 28 centimes, tO the confusion of those who were 
speculating on a fall. Rasin also prohibited the import of Austrian securities 
which would have weighed down the balance of payments. (See Piot, 
0p. cit., p. 156.)