THE MONETARY CRISIS 89
the same in both cases, and the last stage of currency recon-
struction in Czechoslovakia has confirmed the theory that
there can be no stability without convertibility.
§ 11. Currency reform in Austria. Return to normal exchanges
by the effective use of the Gold Exchange Standard.
Fair™ stable prices emerge from stable exchanges in
spite of an enormous increase in the fiduciary circulation.
Austria offers an example of the attainment of stabilisa-
tion after prolonged depreciation in its extreme form.
At the time when the restoration of the currency was first
contemplated in Austria, the crown had fallen even lower
than the mark. The rate in New York was o0'0oo1 37 on
April 1st, 1922, and 0000022 on August 1st of the same
year. Notes were issued at an increasing rate as deprecia-
tion advanced (304 milliards on March 31st, 1922, §49
milliards on June 30th, 786 milliards on July 31st),!
and an unstable currency had been attended by almost the
entire series of economic and social disturbances which
have already been described in the case of Germany. It
was at this stage that the Chancellor, Mgr. Seipel, made
a desperate appeal to the world at large, which found an
echo in the Leaguz of Nations. The latter, after having
considered Austria’s plight at its session in August and
September 1922, prepared agreements, with the object
of ensuring both the assistance and control necessary for
her financial recovery, which were signed on October 4th,
1922, by Austria, Great Britain, France, Italy and
Czechoslovakia.2
The real basis of this scheme for currency reform and
financial reconstruction appeared to consist of a series of
measures destined to arrest the further issue of notes, and,
1 But the increase was much less in proportion, for the circulation
hardly trebled between the first and last of these dates, whereas the
exchange index was multiplied nearly eight times.
2 See the text of the agreements, published by the League of Nations,
C. 716, M. 428, 1922 K., with the title “Financial Reconstruction of
Austria,” November 9th, 1922.
