Paris Peace Conf. 184.01102/160
Lieutenant Hugo G. Campagnoli to Professor A. C. Coolidge 11
Subject: Order by the Department of Finances of February 15, 1919, regarding the temporary restrictions of money remittances.
The text of the prohibitive decree is as follows:
On the basis of the decree of June 24, 1917, the Department of Finances orders the following:
- A.
- 1. The import of bank notes of the Austro-Hungarian Bank and the remittance of amounts to German-Austria in crowns, as well as the execution of such remittances, are until further notice prohibited. The Department of Finances can, under special conditions, permit the remittance of amounts in crowns from abroad to German-Austria.
- 2. Persons crossing the border will be permitted to import bank notes up to the amount of 500 crowns.
- B.
- Persons and firms who have their domicile and permanent residence in one of the national states of the former Austro-Hungarian monarchy, may dispose of their existing or subsequent credits in crowns in German-Austria without limitation, whereas payments to other foreign countries and within German-Austria, until further notice, shall not be effected without the permission of the Department of Finance.
- C.
- The existing or subsequent credits and claims in German-Austria of persons or firms who have their domicile or permanent residence in one of the national states of the former empire, are to be made distinguishable as such and are to be kept separate.
- D.
- The transfer of coupons and dividend-warrants from the national states to German-Austria is only permitted with the sanction of the Department of Finance.
- E.
- The sale of securities, stocks, etc., to persons and firms who have their domicile or permanent residence outside of German-Austria within the territories of another national state, is only permitted with the sanction of the Department of Finance.
- F.
- The traffic in bank notes between the Austro-Hungarian Bank and the national states of the former empire, as well as with the other foreign countries is permitted, but disposition of such credit in crowns within German-Austria is only permitted with the sanction of the Department of Finance.
- G.
- Such territories of German-Austria as are occupied by the armed force of another state, and are under foreign administration, are to be treated in the same way as the territories of the respective state in regard to this order during the time of occupation.
- H.
- 1. Exceptions to the regulations of this decree may be granted by the Department of Finance.
- 2. Applications for permits in accordance with paragraphs B to E are to be addressed to the Department of Finance and are to be transmitted through the “Devisenzentrale” (Central-Office for Foreign Currency) in Vienna.
- I.
- Violations of this decree will be punished in accordance with paragraph 13 of the ministerial order of June 18, 1918. Further, the confiscation of the articles to which the crime refers may be ordered.
- J.
- This decree goes into effect on the day of proclamation.
Reasons for the prohibitive order. Official report.
The Kingdom of the Serbs, Croats, and Slovenes has stamped the bank notes circulating in the territory of their state; a similar step is planned by the Czecho-Slovak Republic, by which bank notes thus marked are given exclusive paying value and those of the Austro-Hungarian Bank are not considered valid. Thus these states not only infringe upon the privilege of the Austro-Hungarian Bank, but also put the German-Austrian state into an embarrassing position. The German-Austrian government, therefore, finds itself compelled to seek means of defence and to close its borders until further notice so as to prevent the further import of bank notes. The German-Austrian Government has resolved to take this measure of defence only because of the overwhelming pressure created by the contravention [Page 262] of the other national states, and hopes that no fair-minded person will misinterpret its action. The government cannot afford to take the risk of being the sole state in possession of the Austro-Hungarian bank notes and thus be looked upon as the successor of the old monarchy, for whose public debt and circulation of bank notes not only German-Austria, but all the other national states, are responsible. The bank notes held by foreign countries did not get there on behalf of supplies, etc. for the present German-Austrian state, but for the mutual war purpose of states forming the former empire. The government of German-Austria does not wish to resist the recognition of the bank notes held by foreign countries, and does not intend to withdraw from any of its financial liabilities. However, it takes the stand that the other national states of the former empire also meet their liabilities. The German-Austrian Government is of the opinion that the share of each of the other national states in the liabilities of the old monarchy should be ascertained as soon as possible. To prove the perfect willingness and good will of the German-Austrian government it declares itself in readiness to yield to the decision of an international court of arbitration which should fix the liability of the various national states with regard to the Austro-Hungarian Bank and owners of the notes as well as the creditors of the state. In expectation of such a court’s decision the German-Austrian Government declares all actions caused by the decrees of the Jugo-Slav and Czecho-Slovak states as temporary, and is ready to drop all distinction between the notes stamped by the various states and those not stamped, as soon as this is also done by the other national states.
- Transmitted to the Commission by Professor Coolidge under covering letter No. 114, February 27; received March 3.↩