The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-07-10
AUSTRIA.

AUSTRIA.
Imperial Debts and Credits-The Cis.I.eithan
Budgct-TaxatiOn and Revenue In Hungary
Austrian Charges for the Revolutionary
Wars - Provincial Reputation - Foreign
Loans and Paper MOney-Shifts Of the FL
nance Minister-Property and Poll Taxes.
VIENNA, April 90, 1868.
The budget estimates for every day expenses have
been voted by the delegations and the customs duties
been assigned to cover them far they will reach
which is not far The balance of these estimates has
to be raised by the two legislatures-namey, the
Reichsrath and the Det-in the proportion Of seven
tenths and threetenths respectively besides which
the aforesaid bodies have both to provide for their
own purely domestic distinguished from the mpe-
rial expenses. They have also to raise funds to pay
the national creditor, but the two portions of the
empire are In very different position in this re-
spect; the eastern portion agrees to pay a fixed
yearly sum (26 600 900 FORMS IL my memory does not
err for interest and redemption Of principal, and
there It's liability ends. Such are the terms OF the
1867 settlement. The balance Of the obligations as
to interest and principal is thus left for the west
ern portion to assume, II they please.
On the hypothesis that Hungary has no valid pO-
litica objection to allege against all any Of the
imperial debt then it is clear that Hungary is as
sessed too low, and Finance Minister Brestel COM
plains mat she ought to pay 100000 forms per
annum In place OF ditto. But what is the de-
fence Of the Hungarans to this impeachment Of their
financial integrity They point to the fact that by far
the larger portion Of the imperial debt has been coh
tracted since 1s4s by the dynasty, Illegally far
Hungary is concerned, for there were no Hungarian
ministry and constitutional Diet In existence to
ton the measures, expenditures and loans OF the
imperial government and this expenditure was noto.
rously used to govern Hungary by means Of an army
Of occupation and to repress the Lombards and vene
tians, policy towards the last named which was
notorIously against the principles and interest Of
Hungarian constituuonalists. Hungary gave notice.
by her repeated protests and by her refusal to take
part in the constitution Of $780, that she disputed the
legality Of everything that had taken place since the
suppression Of the Hungarian constitution of 1s4Sa
suppression, by the way only effected by the enor-
NIFTY Of invoking the aid Of the Gear.
To the plea that however good this argument may
be a. against the dynasty 1t ought not to affect the
public creditor the Hungarans reply that those who
lent money to Austria during the reactionary period
had full notice from Hungary that the nation re-
garded all that was taking place a. illegal and not
binding upon them, and that the public creditor was
guilty. OF political and moral crime in lending his
or her money to prop up an unjust and cruel system
In Hungary and Italy-a system which was actually
unconstitutional In Hungary. II the public creditor
chose to disregard these continued protests the
part Of Hungary, that was his lookout. He thereby
made himself an accomplice In the crimes Of the
dynasty; be staked his money on the endurance OF
the absoltist or centralis principle; he has lately
lost in the political game, and therefore he must
expect to lose In the money part OF the transaction
which was inseparably bound up with the political
system which 1t was lent TO support
the charge Of partial Reputation Of the imperial
debt. They add, however that such reputation
spd s1
be burdened by debts contracted with q view to pay
the armies which until lately occupied and governed
have used their right partial reputation with great
scrupulosity and consideration, and while Finance
side the etha are scodng the Deaksts for not hav-
ing assumed their proper share OF the burdens OF the
imperial debt the extremists among the Hungarians
made with the imperial government concerning said
debt. and using this portion Of the settlement as
great Hungarian who ia principally responsible for its
Conditions M. Deak does not deny that Hungary
TO her. but he argues that friendly settlement with
Austria was 30 advantageous to Hungary that the
price paid 70, Il In the terms concerning the debt
utrapatriots are In themselves sufficient answer
TO the attacks from the side Of the absolutiss,
The jealousy towards Hungary In this respect which
Il felt In the western portion Of the empire by no
d
Finance Ministen n. Won Lonyay, on the part OF
Hungary, announces that he can make both ends
meet With the present number and rates OF taxes and
that he has Intention OF asking the Diet to sanction
new burdens upon the people Howdiierent the post
from the nrst and the extraordinary levies which
Minister Brestel intended proposing to the Reichs-
rath have long We'd with the Concordat as subject
OF public discussion and private conversation In this
portion OF the empire. A dedcit In Austria fs as
normal condition OF things the eastward now Of
the single exception OF the year 1917 such Is the
ommous fact 10 stay this dehcit-suddenly to alter
lean task OF the present constitutional ministry Let
W now see by an analysis OF Finance Minister Bres-
tes speech and the nye pills which ne laid on the
administration proposes to unfie the empires Cor
The peculiarity Of Dr. Brestes budget is that IL ia
made not for one year only, but for three years
naueiy for 1868, 1869 and 1870 BY the end OF 1870
Dr. BrssseI hopes that the ordinary taxation Of the
vded that peace is maintained and that no necessity
for placing the army and navy on war footing
finance Minister-somewhat remote future,
Dr. Brestel very modesty says that he gives guar
what may be done in the way OF relief for 1871 and
afterwards. Sufficient for him Is the problem how
To make both ends meet for the present and two next
years. The deficit for this part OF the empire for
the said three years Is estimated at 62,00O,OO0
5o,ooO,Ooo and is,ooo,ooo norins respectively; in
all l50, 1000 for the three years. How Is
this TO he made goodS The ordinary traditional
remedy In Austria hitherto has been TO go into
the european money narkets anu soilcit q loan.
The Auersperg administration decidedly rejects this
means aud for the following reasons, rs stated by
Minister Brestel:-"We have from year to year an
ever increasing national debt; side by side with this
we have continuous sinking OF our public credit,
that the loans which have been contracted OF late
were obliged he taken up at truly enormous rates
OF interest. when we reflect that the taxfree loan
actually costs more than eight and half per cent
interest: when we consider that the silver loan con-
tracted In Paris in 1885, taking into account the very
onerous conditions Of repayment, strictly speaking
costs ten per cent; when we consider that even the
and which was no public debt, but which the state
contracted ~ a private Individual and for which 1t
rave an ordinary debtors security, actually costs
seven and q half per cent interest, we may well
maintain that our credit has fallen to such point
that even in this respect measures must be resored
to to prevent its falling still lower"
Shall resort be had TO new issue OF state paper
money! The Cabinet has rejected this idea IN toto,
and will cover no portion OF the three years deficit
by this means Upon this point tAe Finance Min