VIENNA: MUNICIPAL REFORMS IN THE LAST DECADES OF THE EMPIRE

In 1849 governmental autonomy was granted to all municipalities in the Habsburg Empire. Although thereafter Vienna enjoyed self-government, repeatedly the emperor intervened in its affairs. From 1850 onward, Vienna underwent rapid growth, expanding in 1890 to incorporate suburbs across the Danube and along the Vienna Woods. A municipal constitution of 1850 established a city council to be elected by tax-paying citizens divided into three classes. In 1885 the minimum taxation for suffrage was lowered to 5 gulden, excluding the poor until universal suffrage came in 1907. After 1890 the unwieldy city council of 138 members was directed by 25 of its members, the Stadtrat, who together with the mayor ran the city. As mayor of Vienna from 1897 to 1910 Karl Lueger (1844-1910) so dominated public life that next to Franz Josef he was the city’s best known citizen. Although Lueger had entered the city council as a Liberal in 1875, over the next decade he broke with liberalism and denounced international capitalism as a ”Jewish monopoly”. After being briefly an ally of Schönerer, he became a friend of Vogelsang whose doctrines he incorporated into the Christian Social Party, founded in 1893.…

THE ROLE OF AUSTRIAN BANKS IN NAZI GERMANY’S EXPANSION TO CENTRAL, EASTERN & SOUTH-EASTERN EUROPE

Palais Ephrussi, Viennese Jewish banking Family (exiled): Edmund de Waal, “The Hare With Amber Eyes” describes the destiny of this banking family

The German state-owned VIAG (Vereinigte Industrieunternehmungen) and the Deutsche Bank gained control of the majority of shares of the Creditanstalt-Bankverein CA from the time of the “Anschluß” of Austria to the Nazi German “Third Reich” in 1938 onwards, originally by taking over the shares of the Austrian state. From the very beginning the German majority shareholders viewed the bank as an important tool for German penetration into South-Eastern Europe, not only because of the geographical position of Vienna, but also because the Viennese banks, many of which had merged with the Credit-Anstalt in the interwar years, had been very active in this area before 1918 and still had much experience in the region. Contrary to the image the CA wanted to create after 1945, the leadership of the CA, and especially its most important director, Josef Joham, viewed the German takeover of Austria as an opportunity to recover the position the CA had held in South-Eastern Europe before and to turn Vienna into the financial hub of the Nazis’ activities in Central Europe and the Balkans. In fact, the CA often took the initiative in expanding its banking activities in the German satellites and occupied territories. It constantly made reference to its historical role in the region and viewed its acquisitions as restitution and/or compensation for its losses and exclusion by the successor states after the collapse of the Austro-Hungarian Empire. The German control of Austria and the CA provided a welcome opportunity to restore the position Viennese banks had enjoyed during the Austro-Hungarian Empire. The close co-operation between the CA and the Deutsche Bank, namely between the two directors Josef Joham and Hermann Josef Abs, had already started before the “Anschluß”. As Joham had supported the old regime in Austria, but anticipated the “Anschluß” of March 1938, he sought protection for himself and the bank through the alliance with Abt and the Deutsche Bank. Yet first the German VIAG took over the majority of shares from the Austrian state and Deutsche Bank got hold of only 25 per cent of the shares of the CA, but in 1942 the Deutsche Bank finally acquired the majority of shares in the CA.…