The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-12-27

that at first gave rise to the idea Of and subsequently,
led to the foundation 81 this institution. During
the war in the East (ron 1883 to 1860 the finances
Of Austria were in very depiora6le condition. chief
ly owing to the necessity OF an immense expendi
ture for the maintenance OF an army consisting OF
nearly 500 900 men; and despite the national loan
of 500, 900, 900 forms, patroticaly conceived and
laudably carried into effect for the purpose of
paying off the government debt to the National
Bank to such minimum as to enable that institution
to resume its specie payments, and thus to abolish
the deprecated paper currency Of the country, it
found nevertheless at this period that nothing
short OF positive influx of foreign capital, in hard
cash, would enable the government to re-establish
the currency Of the empire upon safe and solid ba.
railroad from the Saron frontier (Bodenbaeh) dosn
to the southeastern frontier of Hungary to the Paris
Credit Mobiiier, and the consequent establishment Of
the Franco Austrian Rail,oay Company This fiscal
neyed world at the time and though it did bring
large capital in hard silver coin into the Golfers of the
government treasury, H. Pereinc had, nevertheless,
made an excellent bargain with the Austrian gov
eminent and earned fat JOB for himself and
colleagues. The Rothschilds, indignant at this I'M
looked for Of their parDenu rival, began to
bestir themselves and to muster their old adherents
in order ehectually to give battle to the audacions
upstart the very next occasion when another fat
morsel to be picked ut the threshold Of the min
stry Of finance in the Himmelpfortgasse Shortly
afterwards Baron Brock returned from Constantine
pie: and hopes OF speedy peace in Europe began
to dawn. This very circumstance constituted po-
tent share of that Hgood luck" for which his Excel
lency was once so proverhal, and with which he in.
augurated, as it were, his accession to the post Of
Minister Of Finance. At this period also the sue
cessful operations of the Paris Credit Mobier were
everywhere spoken of, and the extraordinary tatents
Of ats chief director arere tauded to the skies. M
sort of financial demgod, at least on the
Continent; and If The RoihscAilds had not
absolutely lost caste, they icere certainly obliged
TO admit that for the time being the pa,penu Pereire
bid far for ever 10 eclipse their old financial reno,rn
foralready at all the principal places of exchange in
Europe, first rate banking houses had enlisted under
the lucrative standard of Pereire and swore by the
"Credit Mobilier de Paris" Such were the charac-
terstics of the period when Baron Bruck took Office
as Minister of Finance. His excellency had been
merchant trader, and speculator in former days.
as well Minister of Commerce, and an ambas-
sador. All this must be borne in mind for Lereaf-
ter will be seen that no one except man Of such
diversified talents as his Excellency Is would have
ventured to persist in so speculative policy as he
has done to this day.
Considering the positive advantages that would
accrue to the finances of the country by further
influx Of the precious metals from abroad, Bapn
Bruck very logically conceived that the establish
ment Of an Austrian Credit Mobier If founded on
a capital of silver specie would be legitimate and
ready means of6ttaining the "consummation so de-
voutly to be wished" Negotiations to this end
were consequently opened with M. Perere who. was
then greatly in vogue. This enterprisng financicr
declared his willingness to undertake the job, but
pertinaciously objected to the large capital (sxty
millions OF fiorins) which the Minister proposed and
deemed il necessary to insist upon in order to attain
his object M. Pereire on the other hand, commended
that small capital would be a less burden, and
afford comparatively a larger profit to the hare
holders Of the proposed company: lie nasfgnced ne
capital Of the Paris Credit Mobiier, and The adm.
rabis results Of that institution. But the ad-
vantages of the shareholders of a similar in
stitution in Austria was a secondary consi-
deration with the Austrian Minister of Finance,
whilst with NJ. Pereire it was essentially primary
Tba oft a Auc ria Crndi
Mobiier had been already concocted, and the paying
up of the capitol in hard silver coin had been readily
conceded by NJ Pereire. Nevertheless the negot;a-
tons with that gentleman were interrupted by GER
tain intrigues set ON foot by the Rothschild party,
and were finally broken of for two reasons First,
M. Pereire would not consent to so large a capital
being fixed the fundamental basis Of the institu
ton as that demanded by M. de Bruck; and second
", NJ. Pereire was unable to obtain satisfactory
guarantees against undue influence being exercised
by the Austrian government upon the operations
of the proposed institution. Under these circum-
stances, and DESTROYS t. prove TO M. Pereire how
easily his services might be dispensed with, ne
gotiations were now formally opened with Baron
Rothschild and his party The indefatigable SER
81 DC IA nss
The standing and position Of this gentleman
in the commercial world at that time are too
well known TO require comments but they were pro-
baby not rightly appreciated. When he saw that
nothing to be got out Of Pereire, he wisely ten
dercd his good Offices" 10 the opponent party. II
the Job could not be secured in one way, there was
no reason why it should not be accomplished in
another NJ. de IIabers personal connections with
some of the leading members of the Austrian aris-
tocmcy in the way of private industrial enterprises,
peculiarly qualified him to instl into their minds the
love Of speculative enterprise. For the most part
these nobiemen though in possession of large landed
estates, had comparatively but little command of
ready cash. Thus situated they readily adopted the
practical suggestions Of NJ de Haber, TO the eject
that the getting up OF an Austrian Credit Mobilier
would in all probability. turn ont as lucrative an
operation as that Of the creation of the Credit
Mobcr at Paris, by which the original founders
had amassed immense fortunes, and enriched all
parties connected with them: thus doing also an in
nity Of good to others perhaps also TO the country
and 10 the community at large. OF course this lat
Ter consideration was decisive with the Austrian
nobility in question; and thus a new and very re-
markabe era sprung up in this country, the chamc.
teristics Of which were that the Austrian nobemen
Of an almost endless descent, accustomed from time
immemorial to consider all participation ia public
associations Of capital and intelligence except for
objects Of benevolcnce for the promotion Of sci
entifc agricultural pursuits az Incompatible with
his high station, now abiures this anediluvan prin.
cipe, and adopting the more enlightened views OF
his compeer IN the west OF Europe sits down nj the
same board with his plcban fellow creatures 10 pro-
mote the commerce and industry Of his country
This, howeversis unfortunately putting better face
upon the matter than the case 10 question warrants;
for instead Of promoting these great interests OF
cicty the noble members of the board OF directors
of the Austrian Credi, Mobilier have allowed them
ed themselyos. almost blndly, to be dragged into
a whirlpool of reckless stockiobbing spoculations
that have hitherto rcdounded rs little to the honor
OF their ilustrous names to the benefit of those
whose interests they have more specially undertaken
10 protect in that capacity. But all this will be- made
more apparent hereafter. Well, then 20 resume the
thread of my story IL must be stated that the negot
tons with the Rothschd party were concluded, and
at the same time-strange and inconsistent as i
may appeer--the' principle 81 basng the capital
Of the Austrian Credit Bank upon silver currency
was abandoned, bat the principle Of large, an.
wicdly capital to be paid up in the DEPRECATED
paper currency Of tho country, was adtnah 20.
The imperial concession for the establishment Of an
institution under tho fallacious title OF Credit
Bank for commerce and trade, was granted TO list
of illustrous nohlcmen. IN conjunction with Baron
Rothschild, Of this place, NJ. Laemel, the banker,
Of Prague. aud some other persons " minor note !.
a. founders ~ the institution. The large amount
81 shares allotted 10 most OF these noblcnen and
gentlemen with the exception of. Baron Rothschid