Foreign News: Gloom

The 19th monthly report of Dutch Dr. Zimmermann, League of Nations Commissioner General in Austria, was, like most of its predecessors, pregnant with gloom.

Reviewing conditions between the middle of June and the middle of July, the Commissioner expressed disappointment that there was not a surplus in the budget. Said he:

“The greatest efforts, however, must be made in order to reach this goal. Besides the question of a higher level of the budget, the question of the balancing of the actual revenues and expenditures must be investigated because the Government now admits that the preliminary budget shows an increase of the deficit, which can only become worse so long as the present crisis continues. Therefore, reforms and economies must still form an important role in Austrian state economy.”

Commenting upon Austria’s industrial difficulties, Dr. Zimmermann said that they were mainly due to:

1) Tariff barriers erected by neighboring States.

2) Onerous banking conditions.

3) Impossibility of obtaining and, therefore, of giving long credits.

4) Corporation tax.

5) Social laws which favor employes.

Despite his gloom, the Doctor saw signs of improvement, but thought that the job of reconstructing Austria’s finances would be longer than had at first been anticipated. He warned the Austrians to that effect. The granting of short term loans from abroad was a healthy sign, said he.