Notes on the News

Nelson Evening Mail, Volume LXXII, 23 November 1938, Page 10

Notes on the News

Credit Anstalt Karon Louis de Rothschild, detained by flic Nazis, has boon offered ljis release on payment of £OOO,OOO. The collapse of the Credit Anstalt, his powerful banking firm, was a staggering blow to the Austrian Republic and a prelude to the world crisis of 1031. In Austria-conditions were none too prosperous even before the crisis. Unemployment was comparatively high, and the trade balance was strongly adverse. The deficit on the balance of visible trade was met largely by Ibo invisible export item represented by the spendings of foreign tourists. The decline of tourist traffic brought about by the crisis was, therefore, a hard blow to Austria. Conditions were going from had to worse, and the crisis culminated in flie difficulties of the Credit Anstalt, the largest bank of the country. The (Jovermnent undertook to guarantee the liabilities of the bank, which were extremely heavy burdens. A fair amount of foreign capital had been withdrawn from the country, and the difficulties of the Credit Anstalt had aggravated the industrial situation. The Credit Anstalt owned SO per cent of Austria’s industries. Its failure meant national bankruptcy.