Josef Jiří Král

“ It is estimated that notes to the amount of 24 billion crowns are in circulation in former Austria and 10 billion in Hungary. It would be more correct, however, to say that those amounts of notes are outstanding rather than in circulation. For it is a fact that, notwithstanding the enormous amount of notes printed, there is a shortage of currency in Austria-Hungary. The people are hoarding the notes! The presses are still working, the supply of notes is overabundant, and yet there is a scarcity of notes in circulation. ”

“ Throughout the war the economic balance—the balance of payments between the Monarchy and other countries—has been adverse to Austria-Hungary. According to data recently published by the Pester Lloyd the value of imports into Austria-Hungary during the four and a half years from January, 1914, to July, 1918, was 19,574 million crowns, and the value of exports only 7,652 million, showing an adverse balance of trade of 11,922 million crowns. The balance of payments on foreign investments was likewise against Austria-Hungary, though it is not possible to estimate it accurately. ”

“ It is rather difficult to explain this apparent paradox. It has been suggested that the people are afraid of bank robberies in these unsettled times; that they hope to escape taxation by hoarding; or that they see no opportunities for safe investments. ”