The New York herald., 1869-05-26


b o lower denomination than 10 aorus and to bear in
Thai The State take over from the bank the notes
That the State at can in The paper fractional cur
s. the legal tender attribute be Withdrawn from the
win
sass 20 ss at six :S BE-
So much Of this loan be taken up
should Be- raised BY Of forced osn Sssrns By way
Of .ss s Of BY tn. bank
for which, however no definite time Was xsd tho notes
until that time tho small notes be made convertible
q That after resumption by the bank 1t should issue
isgsiIzsd.
Such was the programme OF the bulionist and
bank monopolist commission, and to that portion
OF 1t which proposed to substitute metallic small
change for paper bits representing the tenth parts
OF o fOrin also to that which recommended tne
State to pay of IS debt to the privileged Austrian
banking corporation, the ant-bullionist would not
merely not object, but would heartily commend
Moreover as lover OF liberty Of contracts he could
have no valid objection to metal contracts, gold ana
silver being under his syst system, degraded ana pfG.
ties. But his approval OF the Recommendations OF
this report must stop here,
ism took this report OF April, 1850, as his leading
string, ana would doubtless have been glad to carry
out It's recOmlQeQuatlOQ3 CONCERNING Tt5uulptAOus
the restoration Of the bank charter In Its integrity
and the determination OF the small notes. But
great social facts are not always under the conlro
or fanatical theorists, and these facts kicked hard
against the bullionist policy. On the LIST January,
1851 the State issued In place Of the cassd-anoes:
ungen on both sides OF the Leitha, new edition OF
notes Of lOo 500 and 1000 norns bearing three per
cent interest ana OF co. 10, s, and norin without
interest. In this respect and IN conferring upon
them the attribute Of legal tender the government
were not so bulliOnist as the commission. But the
cloven foot Of bulionism appeared In the delusive
and never performed promise OF CONVERSION nt0 Sif'
yer contained in the formulary OF these new notes,
called reichsschdtz soitetaae or Imperial Exchequer
bills. Here is the formulary:-
FLoRINs.
Imperial Exchequer Bill.
The Imperial Treasury and all asca officers win aooeps no
good for form. instead Of coin The sxchsansr Si VIII
Ordinances win appoint the mode and time Of this
VIENNA Jan. /, 1851.
Our comment on the concluding clauses Of this
formulary Is that the government never ionnd Itself
therefore that the prom 'sed especial ordnances''
never saw the light. The trouble with Prussia at
Austria during the Crimean war QS53-5), disabled
the government from amasslng large metallic
fund, enabling the bank to do SO, by sqnarng &C.
counts with 1t with view to the restoration OF
specie payments.
on February 2s 1854, an important step was taken
towards the restoration OF the banks monopoly OF
issue and the resumption Of specie payments. The
State transferred to the privileged Austrian bank all
the treasury notes exchequer bills in circulation,
amounting at that time to about 15O,OoOOo0 forms
q by no means excessive, aye, very moderate
amount. These State notes were to be retired and
replaced by bank notes, IL was at the same time
ordained that after the 1st Of November, 1855, nc
State paper could be used In payments or be
bank exchanged ali the State notes 1t ever did
exchange Q46, 100000 fiorns IN amount within Q
twelvemonth from the date OF the ordinance, ana
February, 1855, must be assigned as the date when
the issues Of State paper money called forth by the
events OF 1S4S and 1s40 ceased to exist As part OF
this plan the State agreed pay the bank at least
iOrnS a In silver, with q view TO eu-
able the bank to anass metal fund preparatory to
the resumption of specie payments. At the tune m
when the State notes were ceded 10 the Dank the
premium on silver stood at twenty-nine.
Still the bullionsts eyesore, an inconvertlble
paper currency, remained. The State had surren
dered its prerogative the State notes were doomed;
but the bank notes were still inconvertble It was
Baron Won Brnck, Who by bold coup de.ermined S,9
to force resumption OF specie payments THIS bold
coup was to contract new so-called "nationar'
loan, as security for the repayment OF which the
State was to pledge with power OF saie Its domains
and of which the proceeds were to be paid
to the bank, with view to reduce tne
debt owing TO 1t o ey G the state " wch aha rd, linen
amount OF S0.000,000 or norins. This, OF course,
with the ultimate aim Of enabling the BANK TO re,
sumo. This loan was offered in October, 1865, and
Baron Won BRICK then announced that by the month
OF August 1855, the bank would be LII position 10
resume specie payments.
note circulation win show that the governmental
and bank authorities although they did not allow
the State and bank notes to expand with the great
expansion which Austrian trade, manufactures anc
public works assumed IN ls50-s, yet did not pursue
any cruel policy OF absolute contraction such as tht
extreme bullionists always the advocates OF. In
February $780, as we have seen, the total pank an,
state note currency, exclusive OF tne ractonai cur
35l, ,000 000 1orins In 1S5123, the bank note circu
lalion fell In consequence or repayments OF tne Stat
debt to the banks; but the vacuum was ulIed Du
not more than nlled, by corresponding expansion
of the state note currency. On December 81 1854
banks monthly statements, the bank notes amounted
to 3s3,491 900 norins; on December u, 1850, to
oTns %Tns On becembsr 81 1897
3s3,4sO,7ss norins, and on December 81, 1858, 70
$40, ,4sO, 7s9 norins.
Brack has indicated August, 1858, as the period
when specie payments Should be resumed. BY an
International treaty Austria In the most solemn
manner, bound herself to resume specie payments
at latest by the close Of that year. by the monetary
treaty with the Zollveren OF January, 1851 Austria
bound herself In a mutual contract with the states
OF the Zovereln not only not to issue any more
inconvertble paper money but to Withdraw IL all
before the lst Of January, 1859.
An inspection OF Appendix No. 2, under the ap-
propriae years, will show tnat since the nth month
OF 1885, at which period the premium ON silver stood
at twenty weight, the difference between the value OF
nconvertbe paper and metal kept steadily diminish
ing so that by the LIST OF April, 1856, the premium
that time forth until its disappearance never fol-
q day rose higher than nine. The table foi
lSss shows that the last last Gano9 quotation o OF so
tember 20, 1858, which day 1t stood at the merely
nominal rate OF only one-haf per cent Add to this
refusal OF the bank to extend Its issues according as
the demand for currency required, aud we have the
conditions from which great disturbance OF values,
I. e., a fall IN the prices OF all commodities except
the precious metals, might, without more, be de-
duced by any one at all conyersant with monetary
science. Such fall In prices aid take place In ls5S
and In the autumn OF tnat year the bank made q
partial return to specie payments by declaring its
readiness TO convert on demand Its notes OF the de-
nomination of ten fiorins ana upwards. The return
was partial In that the large number OF one and nve
norln notes still not convertible. The bank was
unable to resume In regard TO the small notes be-
cause there silver coin In circulation or even
minted to take their places.
Now according 10 the bullonist theory, 1853 ought
to have been fourishing year for Austrian indus.
try WHILE according TO the anbullionlst theory, II
ought to have been the very reverse OF that Now
what were the factsf Let Mr.. Stroche In MS pam.
phlet on 'sThe Currency In AUSTRIA quoted IN the
first section Of this article depose to the same and
the deposition Is all the more valuable as IL comes
from bullionist Mr.. Stroche wrote his little work
In 1s6l and therein said upon this point
BY all those who have interest In Austrian manufac
lures which besl manufacturing Interest In
the year 1855 still keeny remembered 10 make neces
l.sAtI