The Sun.
London, England, 1856-09-29 00:00:00

TIIE PANIC IN VIENNA►

VIENNA, Sept. 23.—For some time past theist
has been a strong tendency to a decline in all kinds
of Austrian stock, and certain measures taken by
the Credit and National Banks have now led to a•
panic which fully equals, if it does not surpass,
that which prevailed here in the winter of 1850
and 1851, when. a war between Austria and
Prussia appeared inevitable. According to this
17th paragraph of the statutes of the
Credit Bank, the whole capital of 60,000,000 ft.
11'33 to be paid in by the end of June, 1857, but
the fact had entirely escaped the memory of the
great majority of the shareholders, and the few
who did remember it wore of opinion that no
further call Would be made on them until A
balance-sheet had been published, and a dividend
paid on the first instalment of 30 per cent. In-
stead of a balance-sheet containing an account of
the way in which the 18,000,000 ff. already received
had been employed, the Administrative Council of
the Credit Bank published the subjoined laconic
notice in the official Weiner Zeitung
"Age ei.Ey to the 17th paragraph of the statutes,
which relates to the further payment of the 70 per cent.
of the capital of the institution, the Administrative
Council has det 4-nil:Jed that 20 per cent. shall le paid
between the Ist and 30th of November, 1856 ; 10 per
cent. I etweea the 21 and 31st of January, 1857 ; 20
per cent. betwe,oi the Ist and 3Oth of April, 1857 ; and
the remaining 20 per cent. between the let and 30th of
June, 1857: _ _ _

The immediate consequence of the foregoing come-
' munication was that those Austrian holders of
• Credit Bank stock who had no prospect of being
able to paythefurtherinstalments suddenly brought
their shares into the market, and thereby caused a
very heavy fall. Two days before the decision of
the Council of the Credit Bank was made known to
the public two or three of its members took undue
alvantage of their position, and effected large sales
of shares at high prices at various German capitals.
At the commencement of this month Credit Bank
shares at 2001, on which but 30 per cent. had.
been paid, were at 39411., and this morning they
were at 3251 As the foreign holders of Credit
Bank stock are beginning to share the panic which
prevails here, it is very probable that there will be
a further fall, although the principal money-
changers and sellers of Government stock have sold
shares to an enormous amount to the great public
within the last 48 hours. As if to increase the
dilemma in which the finance world is just
now placed, the direction of the National Bank
has this morning informed the public that, it has
raised the rate of interest "on all discount and.
loan business" from four to five per cent. It ne€d
h be said that the news of the departure of the
united squadrons fur the Gulf of Naples has temiea
to increase the panic of the stock-jobbing world.
Reliable information has been given me that the
Credit Bank simply followed the counsel of the Fi-
nance Minister when it called on the subscribers to
pay up the remaining 70 per cent. within so short
a period, and his motives for giving such advice arft
pretty evident. For want of the necessary funds,
the Credit Bank has not yet been able to establish
braLch banks in Hungary, and some of the most in-
fluential nobles are now moving heaven and earth
to obtain from the Emperor the permission to estab-
lish an independent Credit Bank for that Crown.
Land. For political reasons the boon will not be
granted, but the Austrian Credit Bank will receive
orders to establish branch banks without delay.
Another reason why the Finance Minister is very
desirous that the Credit Bank should be in posses-
sion of its whole capital is, that the Francis Jo ieph,
Theiss, and East Galician Railroad Companies re-
quire its assistance. It is related that railroad and
other inclustriel concessions requiring a capital of
250,000,000 florins are about to be granted by the
Austrian Government, and if such should really
be the case, a tremendous smash, and that at no
distant period, may reasonably be expected. In
my opinion Baron Bruck has even now more irons
in the fire than is quite prudent.