The New York herald., 1869-05-26

Suc6 were the three defecss in point Of substance
The defect in point OF form was their title Instead
OF being termed as such notes are now IN Austria
State notes-0r as q similar kind OF money In Prus-
sia Sax0ny and the United States Is now Called
treasury notes ltdssen 0fuette), they err0ne-
ousy dubbed with the title Of bank notes (oanco
zetteU.
one OF the earliest edition Of State notes in the his
tory OF modern civilization has an undeniaDe histo-
rical importance, on which account ! subjoin here
the formulary OF one OF them, formuary which, by
the kindness OF the West Austrian Minister OF Fl
nance, your correspondent has been allowed to copy
from the Patent OF 1852 as preserved among the
archives Of the Finance Department.
This is "a aorins
which is receivable in ali tax receiving Of the Hun
81 half The taxes paid
a for aca sn ns sn
bonds at 1--WE per cent s may be exchanged.
The experiment succeeded beyond the expectation
OF the imperial royal government the increase OF
the circulation gave much needed impetus 70 t the
new notes to metal, and such glow Of confidence
and optimism took possession OF the community
that in less than eighteen months after the st issue
Of State notes the government was able, IN conse-
quence OF the amount OF money Offering itself TO IT,
to reduce the interest the State debt from six to
five per cent and shortly afterwards to still reduce It,
in the unobectionabe manner, to four per cent
1000 Of the i7sa edition Of state notes had had been
printed. The power Of converting them into metal
remained unused by the public. Az the above daLe, ate
tiOn of 100000 10rins, but not exactly on the
same terms as the first edition. The patent
first and third defects in substance Of the the
first patent and declared that the State notes should
the full amount OF taxation due by the citizen to the
State. The third substantial defect, namely the
right to fund the notes In five per cent stock, was
abolished, and rightly so, for, we repeat, taxation
money when not IN excess should be Kept IN clrcu-
with interest. The highest denomination Of State
note was raised from 100 to 1000 1orns: Areaay,
then from this date onward we find the state notes
endowed with all the attributes possessed by the
Prussian and Saxon treasury notes OF modern times
and like them not endowed with the prerogative oi
legal tender as between cltizen and citizen.
The form OF this note OF the 1771 edition Is simple
and all but perfect IN s way and with the se e9cep @
proved upon since. 1t runs thus:-
This Is FORMS
which is accepted in payment Of all taxes as the
Of in all the taxecevng Offices Of the Hungarian, Bo-
VIENNA, July l, 77l.
This form remained unchanged throughout the
a 81 sue s w sc OBSERVES
that it avoids the grave fault IN point OF form OF the
United States Treasury note, which contains on ITS
face an unmeanng promise to pay. 1t Is an ele-
mentary axiom OF monetary science that taxation
notes should be promises to receive not promises to
1885, JUNE lat this date the notes Of the 1852 and
I'LL editions were called in ana 90 600 new were
Issued in their stead on the III model ana condl-
ti0ns.
17ss.1n this year. the year preceding the outbreak
OF the French Revolution, which was to have SO pow
erfu effect upon the increase Of paper money In
Europe, 1o,s42,oOo horns more OF State notes were
issued.
1892, APRII.-In this month the French so-called
'patrfot government declared war against Francis
l., the last emperor of Germany. At this moment,
which must be considered epocha in the history OF
paper money the exact amount of State notes TAX
alton money anoat was 20, 729, 100 forns.
Assignats and Continued It upos the same but the
Austrian government, out Of opposition to Jacobn
cal financial policy did not in the first war against
| the French republic which ended with the treaty
OF Campo Formio Q7o7), notably increase the
| amount Of the taxation money a1oat. In
was was to % initiate England and MI Pitt and
| carry on the war With bullion currency. With
view to this end the austrian contracted
down their gold and silver plate and contribute IT
to the national fund raised for the war against
sacrilegious and God-defying nation. Accordingly,
at the end OF 1895, after three years and haf OF
war, the Treasury notes in circulation only amounted
| TO 35,495,7s5 norins. The Austrian government,
however, made the dIscovery-at least as early as
Pitt made it-that great war cannot be carried on
l59o, AUGUsT.-The Austrian government called in
all the old notes of the various editions aud
CHANGE therefor. i Two new points Of great signi
distinguished this emission from It's predeces
sors In the first place, the amount Of the issue,
which had always previous occasions been stated
in the royal patent or ministerial order relating
thereto omitted this declaration the present occa
notes not to be legal tender between citizen
and citizen was also omitted. o.,
",
lowed up on this day by an edict declaring the
treasury notes be legal tender between man and
man. Thus the Austrian government at length
clothed It's taxation money with that attribute which
was accorded to the United States taxation money
tns aes saa ns 1885, the
time the quality OF convertibility into coin was
Withdrawn from the notes, SO that irom thus time tme
have all the attributes OF taxation money. IL Is In
teresting to observe that this suspension OF cash
payments for the Austrian State followed hard upon
the suspension OF cash payments by the Bank OF
England in February 1907. From and after April,
1897, the treasury notes stand 40 slight discount as
compared with silver, the standard metal. But
at the end OF 1897, when the amount OF treasury
notes afloat amounted to ~ eco norns, silver
was only quoted al IO2 100 Tor 1o2-10o the legal
tender currency, and at the end OF l79S when the
amount anoat had increased to 81 go norns the
premium had fallen to 0l q 100 10l-100).
179e $500. 1901 AND 1s02.-Ihe currency history OF
these years proves how much strain and stress the
valuable Institution OF taxation money will bear
without breaking down under the test. The peace
OF Campo Formio OF short duration, and was
followed by the second war with the French repub-
lie. In the last year OF the century QS0o one and
two norin notes were issued by the government for
silver had risen to the stun toerabe figure OF ITO 100
and the amount OF treasury notes IN circulation to
202 O30 092n By the end OF 1902, while the amount
In circulation had increased to 337, 162 339f, the
premium on silver had only reached the still not
alarming premium OF 120-1o0. Had First Consul
Bonaparte only rested satisfied with the excellent
position in which France was left by the peace OF
Lunevile Qs0il, the history OF Austrian taxation
money would not have been disigured with the
melancholy and disastrous chapter Of events which
followed the war, levied by the First Consul against
south Germany and Austria. Indeed as Frederick
| the Great and the French republicans may be
| deemed, the to have indirectly brought into
being the institution Of Austrian treasury notes,
| and the second TO have developed them into per-
feet system OF taxation money, and to have multi
| piled to the full extent compatible with healthy
| system OF currency Ia small discount being not
| incompatible with q state OF health) SO by parity
OF reasoning, the first Bonaparte, with his insatiabe
lust for war, must be regarded as the conriver OF
the ruin Of Austrian taxation money, for by his ag
gressiye policy he forced the Austrian government
grossly TO abuse this valuable resource OF govern
| ment and delicate instrument OF exchange. APP
pend at this point table recapitulatng the stages
| OF the expansion OF state paper money In Austria
| down 10 the end Of 1902
| Percentage or
| Premium
yedT. Fordts on SVrer.
| I762...,.,,..,.,,........... 100000 o
| IT7I........................ 17,000,000 0
l7s5....,................... 20,000,O60 o
7p2........................ 26.T29,130