New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1854-03-22
AUSTRIAN BANKRUPTCY.

Notwithstanding the imminence Of wax and their
pressing reeds, the French and the Austrian GO7ern
ments have not yet succeeded in Strengthening tie
nuras telG, namely, tie mOney-pOwer Notwitbs.and-
ing the LucUian magnicence displayed in the dinners
Given by tie French Minister OF Finance to the Re-
the C,(da MoJilier and the principal
bankers of Paris those capitalists prove stubborn and
cling TO that discreet sort of patfio ism which, by
exacrg the greatest possible interest from the State
is won't TO indemnify its private ioterests with the
public ones Thus the terms of the proposed French
loan Of two hundred million francs remains still
settled.
Az TO Austria there can exist no doubt that one OF
principal motives which induce her to profess friendly
feelings toward the Western Powers is the hope Of
thus reyivng Tho confidence Of mOneyed men and getting
out Of her financial difficulties. Indeed, the official
gazette at VieDna bad hardly uttered few words
about Austrian neutrality and good understanding with
France when it surprised the public with the announce
meDt Of an Intended sale Of q considerable portion Of
the six million acres Of Grown Lands, and wtha fna1-
cial rescrpt dated Feb go 1884, to the effect that the
whole OF tie State paper money, 150,01O)OO norias'
low in circulation and of compulsory currency was to
be transferred Othe National Bank, and successfully
converted into bank notes. at the expiration OF which
charge oil the PAPER issued by the treasury VIII be with
drawn from circulation and no more State paper-noney
Of a forced currency be Issued. In making this change
the Imperial Government is guarantee to the Bank for
tie transferred to it, and pledges itself to
indemnity it for the expenses connected with that con-
version to pay nextncton of the debt thus created
yearly instalment Of at least l0,00OO00 FORMS to
mortgage tie customs revenue security FOR the reg
ular payment of these nstament and to pay the bank
10 specie in proportion those duties received At
the same tine the Government is bound to DO its best
to enable the Bank to fulfil its obligations aud resume
specie payments Meanwhile, in order to give the
holders of bank notes the means of changing their notes
at pleasure into debt bearing interest, payable in
specie the Bank undertakes TO issue bonds bearing
interest to be in all respects on the same footing as
State bonds or Obligations. The Government viii also
call in what are known Redemption notes and Autici-
patton notes aud put them entirely out of circulation
The conversion of State paper OF forced course into
inconvertible bank notes will not reduce the amount
noF ameorate the quality, but only simplify the de
nominations of the paper money Issued AS the State is
in the possession of the which il grants the
BsUk for the redemption of the paper money, fwould
itself have made use OF them ii not fully aware that
the want OF confidence in itself such as not 10 al
low credit TO be restored saye by the help of Bank,
which is Lot the property OF the State Thus the de-
pendence of the Emperor on the Jews Of the Vienna
BaLk grows at the same pace as the military chsrac-
ter of his Government In January 1859 be mortgaged
TO them the Eat-works Of Gmunden Aussee and Stall
Lem In February lS5I, they obtain lien on the Gus
toms revenue Of the whole monarchy. Step by step
the Bank becomes the real and the Government merely
the journal owner Of the Empire. The more Austria
las resisted the demands of participation in political
power the part of the middle classes the more she
is forced to undergo the unmitgated despossm Of one
fraction OF those cssses-tbe money lenders.
The decree, of which we have above giTen the
substance, DISCUSSES an attempt at rev loan under
the form Of aid rendered to the holders OF bank-noes
in changing them into a debt bearing interest; the
latter 10 be paid in specie. In ls52 the Government
also pledged itself 10 meet in specie various minor
payments and Obligations but as it received the taxes
only in State paper money or in bank notes the A3
nnistraon was forced to contract loan of thirty
five million FORMS at London and Frankfort The
leans of course augmen. the old deficits and the aug
mented deficits lead TO lew issues of paper money,
the superatundsuce and consequent depreciation Of
which they were intended 10 prevent. The broad
distinction drawn Oh the par of the Government be-
tween payments in specie and payments In bank notes
is as good means of reseuing the notes from their
dsefedit as tie augmentation Of TIE circulating me-
dun Of the bank by $50 uilions i. of enabling
ii TO tgf it. geGens aud resume cash pay meots
The Government viii pay tie binh in specie in pro-
rorcn rs the customs duties paid in tie sane but
il IL well known that not only the Austrian peasants
tut even tie citizens IN TIE rgor towns are Us fond
of boarding as tie Chinese ard the Indians that in
1850 sums were boarded even in copper, AMI that in
ls5l tLey are paying al taxes paper, although it is
OILY accepted with discount Of full seventeen per
cent
These con7ersant with tie past history Of the Aus
trian E1eh,quer will fail in discovering any novelty
either in respect to the promises held cut in the new
decree or the financial devices resorted Tie first
Issue Of Austrian Paper money took place under the
Empress Maria Theress, toward the end OF the seven