National Debt
As yet the net national debt of Czechoslovakia has not been definitely ascertained. The country is awaiting the decision of the Commission on Apportioning the pre-war debt of Austria-Hungary in conformity with the Treaty of St. Germain.
An excellent idea of the total debt may be gained from a resume of the amounts that are definitely known and from a liberal estimate of the sums which shall be assumed.
1. “Liberation Tax” 750,000,000 (gold) Francs. This is Czechoslovakia’s contribution to the war expenses of the allies fixed pursuant to the decision of the Peace Conference.
2. Advances by Allied and Associated Powers to Czechoslovakia for maintenance and equipment of its armies and subsequent loans for purchase of food-stuffs.
$58,000,000 (Foodstuffs)
$19,000,000 (Military Equipment)
b) France $1,149,212
310,000,000 Francs
c) Italy 206,000,000 Lire
d) England 336,116 pound sterling.
3. Czechoslovakia’s portion of the pre-war debt of Austria-Hungary is about 6,500,000,000 Crowns. Of this sum about 1,200,000,000 Crowns is held in Allied countries and the Republic must pay off this amount in gold. The balance, about 5,300,000,000 Crowns is held in Czechoslovakia and will be exchanged for internal bonds.
4. Austro-Hungarian crown notes (since stamped for identification and subsequently exchanged for Czechoslovak notes) amounting to about 9,000,000,000 Crowns and current deposits of Czechoslovak subjects in the Austro-Hungarian State Bank amounting to about 4,800,000,000 Crowns. This makes a total of 13,800,000,000 Crowns. Of the 9,000,000,000 Crown notes over 2,000,000,000 have been withdrawn from circulation and the amount outstanding is about 7,000,000,000 Crowns.
5. Internal loans (all held by Czechoslovak subjects).
| a) | Liberty Loan | 1,000,000,000 Cs. Crowns |
| b) | 4% Treasury Certificates 1923-4 |
1,048,054,000 Cs.“ Crowns“ |
| c) | Premium Loan 1960 (Est.) |
0,540,000,000 Cs.“ Crowns“ |
| d) | Bank Loans | |
| 386,247,000 Crowns* | ||
| 553,124,000 Crowns* | ||
| 230,000,000 Crowns | ||
| 215,500,000 Crowns* | ||
| 500,000,000 Crowns | 01,884,871,00 Cs.“ Crowns“ | |
| e) | 1920 Deficit Loan | 1,870,371,000 Cs.“ Crowns“ |
| *These loans are being refunded with 6%. Treasury certificates maturing in 1921. | ||
6. Austro-Hungarian war loan bonds held by subjects of Czechoslovakia are being redeemed by the Republic in about 75% of their face value in Czechoslovak bonds provided a similar amount is subscribed to a new loan. The amount of these is estimated at about 7,000,000,000 Crowns and less 25% will mean an additional State burden of about 5,600,000,000 Crowns.
CZECHOSLOVAKIA
is proceeding to reorganize its industry and foreign trade along the most sensible lines. The Government has created a Ministry for Foreign Commerce, designed to stimulate overseas business and to co-ordinate the various manufacturers, exporters, importers and commercial bodies to the end that wheels of trade will revolve swiftly and smoothly.
A determined campaign is to be waged against the relabeling by German and Austrian exporters of goods manufactured in Czechoslovakia. International markets will be openly sought and the middlemen of Vienna and Berlin will be entirely eliminated. The United States and Great Britain are expected to absorb the trade that was controlled by Germany and Austria, and the pick of this attractive market is at the disposal of those Americans who are anxious to establish themselves in this field.
With a view to stimulating our interest and increasing commercial relations between the two countries the Czechoslovak Government has established a trade journal printed in English and published at Prague and freely circulated throughout the United States, and has opened chambers of commerce and information bureaus in New York, Chicago, Cleveland, Baltimore, St. Louis, Pittsburgh and Omaha.
Such enterprise is praiseworthy and opens the door of opportunity to those who really desire to do business with this enterprising nation.—The (N. Y.) Commercial.
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