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History of Austria


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hich to a great part had been established in November 1918, creating new states and resizing others. Over 3-million German speaking Austrians found themselves living outside of the newborn Austrian Republic as minorities in the newly formed or enlarged respective states of Czechoslovakia, Yugoslavia, Hungary and Italy. This included the provinces of South Tyrol and German Bohemia, the latter of which would play a role in sparking WWII. The South Tyrol question would become a lingering problem between Austria and Italy until it was officially settled by the 1980s with a large degree of autonomy being granted by the Italian national government. Between 1918 and 1919 Austria was known as the State of German Austria (Staat Deutschösterreich). Not only did the Entente powers forbid German Austria to unite with Germany, they also rejected the name German Austria in the peace treaty to be signed; it was therefore changed to Republic of Austria in late 1919. The border between Austria and the Kingdom of Serbs, Croats, and Slovenes (later Yugoslavia) was finally settled with the Carinthian Plebiscite in October 1920 and allocated the major part of the territory of the former Austro-Hungarian Crownland of Carinthia to Austria. This set the border on the Karawanken mountain range, with a lot of Slovenes remaining in Austria.

After the war inflation began to devaluate the Krone, still Austria's currency. In the autumn of 1922 Austria was granted an international loan supervised by the League of Nations. The purpose of the loan was to avert bankruptcy, stabilise the currency and improve its general economic condition. With the granting of the loan, Austria passed from an independent state to the control exercised by the League of Nations. In 1925 the Schilling, replacing the Krone by 10,000:1, was introduced. Later it was called the Alpine dollar due to its stability. From 1925 to 1929 the economy enjoyed a short high before nearly crashing after Black Friday
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