The: premium at which the Austrian schilling was quoted during the larger part of 1926 
against other stable currencies is in connection with the very high amount of the gold cover 
(comprising gold in bullion. and coins as well as dollar and sterling bills), which the Austrian 
National Bank maintains against its notes in cireulation and short-term liabilities. The gold cover 
during the whole of 1926 never dropped to quite 54 per cent. Even a percentage of 54:37 and 
24:55 was registered twice only, on January 1st and on December 31st 1926, i. e. at a time when 
in view of the turn of the year the tension on the money market was greatest. The average per- 
centage of the gold cover was 5879 during the year 1926. In the first six months of 1927 
it amcunted. to’ 5486 per cent. There are, therefore, few currenecies 'only, which exelude 
more radically the danger of a depreciation and, in connection therewith, of a return 
of. dumping conditions, than. the Austrian schilling. Other reasons too would make any 
anxiety of the kind appear perfectly unfounded. The Austrian budget is not only balanced, but in 
1925 and 1926 the State household was active with @ considerable surplus. The Austrian foreign 
trade balance is adverse, but the import surplus has so far been met without difficulty somehow, 
which enables the inference to be drawn that the invisible receipts of the country, which escape 
the statistics, are considerably larger than is generally supposed. No direction is therefore dis- 
sernible from which any danger could acerue to the stability of the Austrian currency. 
The official foreign trade policy of Austria is likewise free from any reproach of dumping. 
What is understood in Austria under official encouragement of exports is not a tendency to depress 
export prices at the cost of the inland consumer and thereby to create indirectly a premium on 
exports, either through taxation facilities, against which budgetary reasons would militate, or 
through other methods which are familiar to the foreign trade policy of many foreign countries. 
Austrian export interests have hailed it as a great succes already that they were able in the course 
of. 1926 to obtain the restitution to more or less the full extent of the Turnover Tax which they 
have to pay on all transactions including exports, though this tax could have been meant all along 
as a charge on inland consumption only. 
_ I} it is desired to obtain a notion of the development taken by Austrian exports in the post-war 
period, the figures relating to the years 1923 to 1926 are strietly comparable only, because during this 
space of time, in opposition to the conditions prevailing in the period from 1918 to 1922 the 
oreign trade situation has been under the influence of the return to sound currency conditions and 
the gradual extension of the European trade treaty system has also led to a state of things which 
may be described as an approximation towards normality. In the period prior to the currency 
stabilisation the depreciation of the krone made possible the export of goods which, under different 
sonditions, would not have been exported or, at any rate, not to the same extent, while, on the 
ther hand, the prohibition system, which was then extremely flourishing, prevented many exports 
which in the absence of such prohibitions, would have taken place. 
If the value of Austrian exports in the years 1923 to 1926 is compared, a slow increase is 
noticeable up to the end of 1925 while 1926 shows a retrogression, as is demonstrated by the 
following fieures: 
Exports 
(in thousand schillings) 
N 1,626.458 
. 988.099 
1,948.232 
. 1,728,500 
In regard to exports in 1925, it should be observed that they are only seemingly lower 
than those of 1924. Beginning with 1925 a change from the method of ascertaining values through 
valuation to the system of declared values took place, which accounts for the fact that figures 
computed. in the latter manner are about ten per cent. lower than those which resulted from the 
method of estimated values. If therefore in regard to the period from the end of 1922 to the end 
of 1925 a continuous increase of Austrian 6xports is spoken of, this is quite correct, though the 
öügure for 1925 seemingly shows a deerease. A genuine decrease to a not inconsidenable extent 
has taken place in 1926. It is, however, exactly ascertainable through which circumstances, which 
are to be looked for uniquely in the economic conditions of certain foreign countries. To make 
300d this deerease is the natural aim of Austrian foreign trade policy, which endeavours to reach 
its object through the improvement of existing trade treaties and through working for new 
1STeeMeNts with other countries. 
In view of the economie structure of Austria it cannot be the aim of Austrian foreign trade 
policy, at present or for a considerable time ahead, to arrive at a favourable balance of visible 
irade. For many reasons Austria has to reckon with large imports. In the first place Austrian 
ndustry is dependent on the import of many raw materials and semi-manufactured. products anl 
Stable Curren 
cy Condition 
Export not 
artificially 
fostered 
Developmen: 
of Exports 
Balance of 
Foreign Trade