The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1859-06-08
The Financial Effect of the War
in Europe.

Insolyent Governments Looking for Loans
How France, Aussria and SsrtlInia Re
specIivc,y Raise the Funds-suspensicn of
Specie Payments In Austria and Sardiala,
and the Pswning Of the Crown Jewels OF
the House Of Hapsburg- Immense Oepsc.
ciatiOn OF Government Securities ia Eng-
land and ON the COntinent-Fannscial and
Commercial FaiIures-Revolution In Mat
tiers or Finsnce-Rise and Fall OF Great
Bankers, De-, &c.
The NEST consideration connected with the ex
istipg in Europe what territorial change may
be affected by IT, not what thrones may be overthrown
what dy nases rooted out but what practical effect vii
it have the progress and prosperity Of the people
whose governments are or may become, involved in t9
how will bear upon their trade their resources. their
hnancesrwi it, will not, shut N the workshops Of
Europe ruin the cities and impoverish the peasau.ryS
That is really the most important subject Of inquiry and
one which far above the pomp and circumstance Of go
rous war;, should force itself upon the attention Of all
intelligent minds
Our own opinion is that the cnancal revolutions tina.
will grow out Of tn Italian will be momcotous
than any political revolutions changes that may pro-
duce The people o. the present generation are happily
but little familiar with the financial effects OF great wars
All the departments OF business have been carried on
for the last forty years may be designated the
out Europe-wher France and Austria, and Russia and
Italy, and 1t may be, England and all Germany-sre
gagged the struggle aud have to every
sustain themseves-then the peace basis Of BUSINESS
transactions is at end; and thenoeforh everything is
done a war currency. To a familiar illustration
that be easily understood here might say that
Europe before the wa- and Europe during the war; win
occupy, in regard to its finances just the relative
position as occupied by railroad company whose stock
is at par, and that company when its stock
depreciates 10 Eve per Europe just
to that The ous governments, like many nsol.
vent railroad companies, in the market beg.
gng for means TO carry their operations; but
most Of them find that capitalists turn q deaf
their representations button up their pockets aud
refuse to advance any funds such rckety con-
Germs.
The alarm OF the European capitalists in regard to the
existing state of affairs originated With that hostile aud
offensive speech made by Louis Napoleon to Baron Hubuer
the New Years levee. That speech appeared fore
shadow significantly the OF that have
been since developed that sagacous mind could fail
perceive the importance Of It, Its effect general and
prompt. Capitalists and statesmen distinctly in It the
shadow OF the cloud Capitalists and spectators
business men immediately proceeded to rerench and to
observe more than ordinary caution in their transactions
while on the other hand the governments proceeded
openly TO for war; and to increase immensely their
budget Of expenses.
Perhaps the first real manifestation of insecurity aud
alarm in financial circles attending the effort Of
Austria to raise small loan Of thirty millions Of
dollars The Rothschilds who were cha ged with the
loan found IT easy matter induce popular faith Ia
the security offered. The political atmosphere was too
murky just then to warrant belief the continuance
NJ foi ootho Co L.
the effect Of Louis Napoeons speech the Corps egs
lat the opening Of the session. The speech was all
that could be desired in the interests of peace but the
impression prevailed that insncere and tina. the
Emperor Of the French, while he talked peace meant
war And So instead Of confidence being restored by
the speech, the belief strengthened Capitalists
declined to go into the Austrian speculation the loan
failed the Rothschilds suffered loss OF prestige;
and, as the last desperate resource OF Austria
the metallic reserve in the Bank of Vienna was
| seized, specie payments were suspended governme cut
securities officially fasiaed forced loan OF S37 500 600
imposed the Lo,sbardo Venetian kingdom - a
dependency which will probably pass from under the
House Of Hapsburg in the of the present
the follo~pg financial DEGREES issued -
l. The income tax or the third to be retained by
the pay Office Immediately upon the interest the public
fur de beng paid
loan of 200 900 O0Oa is ordered but az Il is for the
present impossible to contract IT, the National Bank will
advance twothrds Of the nominal value Of the loan
The third decree releases the National Bank for the
present from the obligation of meeting its notes by specie
payments
The fourth decree orders that duties and certain ex
else dues must for the future be paid silver or in pay
able coupons Of the national loan.
But was when the existence Of the secret treaty
tween France and Russia became the alarm in
financial circles became most intense What the effect Of
that news and OF the almost Simultaneous intelligence that
the Austrans bad the Tcino and invaded Sard
mia, throughout Europe generally may eetimated
in measure by It's effect in England the English consols
fell in day per cent representing depreciation of
hundred and forty million Of dollars although England
was then in way mixed up the dispute and has since
officially declared its neutrality. The French rentes Fell
per cent Between the I'd and 2Sh of April Russian AZ
per cent stock fell from 100 81 Sandman stock ,m
81 to 65 Turkish per cent loan from e3 to 81; while
Austrian per cent stock was quoted as low
as 40. Within one week fifty stock
brokers the London Exchange failed to NEE. their
liabilities The depreciation OF government securities in
Epgandwss estimated at $3.50 0eO. Of all other
securities at a like sum- similar effect was produced
on the Paris Bcurse while in Berlin Vienna and Other
continental centres complete derangemen, OF financial
matters he result
few facts will illustrate the exten. OF these failures
One deauer the London Stock Exchange agreed 70 p.y
20 per cent OF hs abies, and that centage amount
en- to $4,000 His creditors, therefore, suffered the
extent of three times that sum.
Lloyd, Belby Co., of London house that was largely
engaged in the Australian trade failed With liabilities
amounting TO over s7oo 600 The immediate csa.e O,
this stoppase was ascrbed to the curament OF assistance
during the war crisis by the banks which had been In
the habit Of discountng for the firm. s25o,ooe was
required for the ensuing two months not moro than
half that sum could he obtained sufficient for one month
only; and 1t WAS Immediately determined to suspend
-Four years ago the capital Of Mr. Lloyd estimated at
sSSoooo TO $4,000 and his prvats expenditure since
then has not exceeded 81 800 per annu In answer to
question: it mentioned that there are some liabilities
for Stock Exchange specuaons as they are not re
cognzed as legal they do no. appear in the account In
examining the books losses appear to have been expe
rienced by speculation.
White Co, of London, bankers and East India army
agents, went down about the time with large abIi