The daily exchange. [volume] (Baltimore, Md.) 1858-1861, 1858-10-29

! AUSTRIA AND THE CoNTINENT.-The finances of
Austria thus described in the letter of the Wen
ma correspondent of the Times under date October
| 1lth:
the Bank is considered misfortune by the specula-
tors on Change, who foresee that they shall soon
be obliged to pay exceedingly high prices for any
| pecun1ary accommodation they may require. The
Oesterreichische Zeitung, which is supposed to be
the organ of the Finance Department. has repeated
stated that the Bank is not likely either to raise
its rate of discount to diminish its bill portfolio
but the finance world is of opinion that the writer
for the paper in question is msnformed, and conse
quently it refuses to be comforted. Many weeks
ago it was observed in my correspondence that the
return to cash payments could not be effected with
out serious Inconvenience to all the parties
ed, and the sequel will probably show that my
Judgment was not at fault. The plans of the
Bank directors not known to me- but the sub
joined figures will show that they have no
choice but to diminish the paper circulation and
with 1T the accommodation which has hitherto been
granted to the public. The Imperial patent re-
latve to the resumption of cash payments saws that
the reserve of bullion which is to serve as security
for the convertbity of the notes shall be in the
proportion of one to three; but there was great
exception to this general rule, inasmuch as it was
ordained that notes of five, two and one horins of
the value of 100 600 900 forms should for time re-
main in circulation without being covered gedecE
by any metallic reserve" The first financial au
horities in Austria of opinion that 400 900 900
torins in bank notes is not than is requisite
for such an extensive empire; that is $50 900 900
ilorns in actual circulation and 20,000,000 forms
in the different public treasures. The metallic re-
serve of the Bank, including foreign bills is about
10000, 600 forns that in the proportion of one
to three, there is at present security for 800 900 900
horins. AS the Minister of Finances was of opinion
that 20 900 30000,000 FORMS in hard cash,
might possibly be drawn out of the Golfers of the
Bank during the first three four months he con-
sdered it advisable to leave the above mentioned
100, 000, 900 forins ''uncovered" but to this the
German phiant hapnuSa l., NJ in,
dance with the engagements entered into by Aus
| TIL" whom sho aiS"ed tpv Carrenoyr Convention of
the 18th January, 1891; Should nd TIE mfnt
| be withdrawn from the Bank there would only be
legal authority for 800 100000 norins, and conse-
quently the Bank would be necessitated to withdraw
bank notes to very large amount from the
circulation. These facts must be quite as well
known to the finance world as they are to me-
and therefore it is not to be wondered at that the
tranquizing articles of the Oesterreichische lei
tun9 have failed to produce any impression The
strange conduct of the Bank in giving but l02
HORNS Austrian currency for 100 forms conyen-
tonal currency bonds tends to increase the preva-
lent mdtdise, but Baron Bruck, who is expected to
arrive here to-day, will hardly fail to put stop to
proceeding which is as injudcious as it is petty
The excuse made by the Bank directors and their
friends is, that the notes in Austrian currency are
but "merchandise" (1vadren) until the lst of No.
vember, and such may be sold for the highest
price that can be obtained for them. The validity
OF the excuse is not to be denied but the measure
of the Bank has led to rumor that the State is in
cined to act as it did in 1911 and 1916 That the re-
port is devoid of all foundation need hardly be
said Great complaints are made by the South
German States that only "a new kreutzers are given
by the Austrian Bank for old zwanzigers but in
my opinion the Minister of Finances is perfectly
justified in refusing to accept coins the majority of
which have been either bored, clipped. or ''sweat-
ed,' at their nominal value. When the members
OF the currency Conference were here they were
given to understand that as soon as the convention
came in force the zwanzigers would be treated as
merchandise by the Austrian Bank. Itmay be OBJ
served that almost all the zwanzigers and coins of 10
kreutzers which have circulatedin Southern Germa-
nyduring the last 20 years coined bv and at the
expense of Austria. Zwanzigers to a large amount
continually arrive here from Southern Germany,
from the Danubian Prncipaties, and from North
ern Italy. The new currency is not to the taste
of the inhabitants of the Lombardo Venetian king