New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-10-27

nevrtheess went 10 premium in paper ss the notes IN
creased This increase was az tue se narary
sty the Bank having been allowed 10 issue po se b
turn for it's advances TO the Governments IN L1D
country was flooded with counterfeit hevehhshSu'N,
pieces" They nevertheless we're at premium -,
paper In 1907 copper coins issued so Dase as 70
be bad on oys s@ the Rpe5 had
that there returning on the course on Ton
had entered. The wars with Napoleon demanded SUP
plies and there were no resources the pfohl,',hhe
system had crushed the indigenous industry OF 'ns
country, made smuggling the most profitable OF az
forms OF business and created few weak exolIe
dusries Prices had risen so high that the nolnns'
required for army supplies, &c, were ENORMOUS.
The note issue in 1896 was 470S00Oi In 1900 " was
200 100000; In 1906 1t was A9O0O0O There we're, pc
Sides counteffeits In immense quantities; the laws
against counterfetng being OF cOunereiis
severe aud the difficulty Of detecting inem 30
great that people feared 10 take notes at ALL ana THIS VI
course enhanced the premium.
The succeeding years saw new patents In regard 10
the finances issued every few months each project was
more desperate or more tyrannea than the last trust
funds required TO be invested In public securities
were taken by tine State, which became responsible To
the All silver plate was ordered to be brought
TO the public offices 10 be assayed at heavy charge IL
would be tedious 10 enumerae these desperate aud re-
Voting financial measures cash was Drought i9r"aId
with pleas OF necessity loud protesiaons OF desire LOT
the national welfare, confessions OF past faults ana
promises that each measure should be nnaL All oil
them, however, proved unavalling
In 1910 the next stage was reached stage which the
student OF paper meets so regularly IN It's MS
tory that he anticipates IL sooner or later IN one FORM OF
another, IN every new instance new class Oh note.
was issued, called "redemption-nOtes" TO represent
cOtu and exchange for paper at the rate OF one TOT
three. BY using these the government prevented IT'S
expenditures from running up such enormous hSies.
the popular attention all confidence IN the
promises OF the government was lost Inc misery was
Persons on salaries found themselves IN the pecunary
position Of day labOrers; the peasants aud country
people who TILED the soil had it, products Tor iood put
trade was brought standstil Says Springer, whose
history we follow and quote here below;
The pecunay eompbiy Of the Austrian civil officers and the
opinion shed b all classes By the Emperor st the civil scr
did the State honestly bat would at any time @ene .
carried aerWar habit what they had esrLe IN period Of
The wretchedy paid customs officers connved at and
shared IN the smuggling In 1910 the banknotes fell TO
This state OF things camo TO crisis In 1911. On FEB
20 Of that year patent issued whose appearance
and character the historian thus describes:
The secret document which decide The OF millions
had been sent out sealed TO the government aaihone 9e were
10 post up hour later Long before dabreak ows
~e%eS and be1syus as much excitement report
battle were eIpec. WIN Eager Ss y a ana ,ss .s VIZ,
the monarch universal feeling Some few could roce they bad
t s%sS Thee @ the Ssss had btea them night
The bank notes, OF which there were over bllilon
puden in circulation, reduced by the proclamation
TO onefh Of their nominal value ana were 10 De e1
changed for redemption notes, called the Vennese legal
tender these latter became aud remain, the Austrian
legal-tender currency. The Government promised 70
issue OF only enough to convert the outsand ny
ba nix notes viz. 2i2O00O0 gulden. Taxes were 10 be
paid in the new currency; Government pensions anu
salaries in the The deOased 50 and lokre1tIes
coins TO be rated at and kIe9zers, ana me
interest the national debt was to be reduced one ha
The smallest redemption notes were Ior - aud e
guden notes could not exchange them On tue Olher
hand. it was believed that certain persons VINO hasS
manner to avoid loss, had received secret hiofN"
ton or It's contents. ,.,.- 49,. ,o o..
6 and June at the bank notes were at lS9o to
the 100 silver The only recourse IN the midst oi nSw
solemn promise OF the Emperor In the patent from
effects the country was still smartlng ana on Wnlch Ine
yirulence OF popular nate and the sharpness OF popular
wit had been expended, stood in the way OF any sucn
issue. The difficulty was obylated by giving tEe new
notes a new name" anticipation notes. In me decree
for Issuing them il aDxi0usly explained that they
were only exchequer bills for anticipating the revenue
Al first l5OOOOO0 issued, but the issues were
secretly increased 600 OOO In 1885, the amount OF
paper money 63s0o00o and says the hstorlan
Austria Oaesl the strange speeaels 81 STATE tSrs1 10 the s
Others Of which DID no, Know to breathe
e ,he worst influence the moa Of the people fruty ami
diligence were lost virtues Vulgar 20, S wa ~, 10 e,
i the uure WhJ Joy to-day all the pleasures OF the senses
IN . t S oSey had NO value .sd II long rejecting
might lose ball and nCney both he very ,S; 90 PI.ps . ,u
stimulated fyouy and folly So the ground was pr pared lot ee'e
%ach the hoscs pleasure, pe received the highest good
0si In 1siS tho Austrian National Bank founded II
was intended 20 draw In the paper money both as SUD
scrpton 10 capital anu through Ine dEemey o. ne odhs
iovernment which deposited nifty millions In silver 70
begin the operation, robbed OF at Ie outSet
n bought the notes at more than the current fae SO
that there profit III buylng then on the bOurse
aud taking them to the Dank run ehs leu " !I
forced almost immediate suspension Loans were tDen
raised for redeemng the notes, ana the mass OF them
was reduced TO $lsl,OoOCOo 49, o., -,
with better success The bank went into operation ana
stilI remains but Government guarantees were gwen
which were burdensome 10 the treasury ana rOpOeu le
bank of independence Its operations we're NANNY
transactions with the Government IT'S means couu not
Inc employed in furtberng the industry OF the country
and to THIS day large part OF IT'S assets CONSIST o COY
ernment obligations, and until these are paid Its usei
ness is crippled The anticipation nOies were
reduced in number their value improved anu
their fluctuations were narrower: In is- tne sse
notes were reduced TO Sg9oOOcN, ahd III is4V
10 ten millions Tue period OF peace was ehpioyeg 10
this effort aud with sound industrial systoln ana 90
dedct an equal amount of energy might nave conquered
the evil As IL was, however, tue notes were redeeeu
by loans the deficit met by loaus, and after SO
Austria entered ruinOus policy OF armed peace lhe
raIations with Hungary bitterly hostile, ana the
noey OF repression proved exceedingly expensive new
onns were continually required the energy OF reform
Al out the nower To decide policy Was wanting
tho dread OF confession aud selllenla was
shifts was established. -.
In iS4s run the BANK at the outbreak OF tn 10
revnInti0n reduced the coin reserve from ss5O0W 70
sssO0OOO. Forced circulation was given TO tue ptnA
noes and the events OF that and the following e4s nu
the good result OF rousing the Nation from It's stupor
Won Czoernig Chief Of Bureau in tho Department
of Commerce aud Industry details luiiy 'ne ~ us
taken 10 regcnerate the Nation AHstrla was IN lne
nnstion in 1850 in which Colbert found France Efforts
we're made reform tho tax system aha irpof Tan.
changes Sere made ~ Sht but the history
consists of little more than record oi st,,
form OF paper 10 auG1ncT seemed
more necessary ever and the Crmean va" otosu
Austria once Tay and Of 1896 with Prussia, pro.
Snced new emissions of paper, and Prof Berglus OF
Iai5n nnotes tle Austrian finance minister as saying
in 1853 That II complications should Arise III huroVo
il would be necessary TO issue more paper. H., ,,xu
was abandoned and freer Industrial system was
adopted Tie panic Of the IasJ 5Hnlner Is me Iapse "a.
cdent in this miserable story. Tne Journal dss Econo
,nses for June last gave the following lccOuat ana eh
The suana ea. vsuB. am2 stock sKA.sg' crd.
effect Of