The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1873-05-14
TELECRAMs TO THE NEW YORK HERALD.

The Bourses Of the principal cities Of Germany
money panic in Vienna.
The German North government, with view to
the relief OF the different centres Of Change, Will
introduce measure into the Diet applying Prussa's
share OF the war contribution to the purchase OF
bills and public securities to advances for the ac
commodation OF merchants, and to the redemption
OF the debt for railway works.
THE PRUssIAN RAILWAYS AND SPECULATIVE POLICY
OF THE STATE.
The German government proposal to borrow
00O 900 thaers for system OF railways in Prus
STA was the occasion Of animated discussion in
the chamber OF Representatives during the latest
days OF the month of March. The liberal party gen.
orally was disposed to support the concentration
OF the railways in the hands of the State. The
ultramontanists on the other hand, who, 1t is
alleged, oppose everything that adds to the iniu-
uence OF the central government, were hostile
to this view. The impression against the govern
ment produced by the debate was very strong, and
the course-so unusual in Prussia-of refusing to
grant the in question by q solemn, decisive
vote, was seriously canvassed by the majority.
The Austrian Bank Act Suspended.
VIENNA, May 49, 1873.
The operation of the Bank act has been sus
pended, its national privilege charering 1t to the
year 1876 being obliterated.
The Austrian Bank Act and It's Pre-
mOnitOry NEUTRALITY-SUSPICIOUS. Ac-
count OF "Wildcat" Speculation.
special correspondence in Hungary, dating in
Pesth at very recent moment presented some
words OF admoniti0n premontory of the Austrian
Bank act crisis and the Vienna Bourse financial
collapse, setting forth some few OF the
which were more Immediately pressing towards
such results.
The writer said The presence here OF the Aus
TRAN Minister President and the Minister of FL
nance has been taken advantage OF TO hold con-
ferences on the bank question. This question had
been lett pending in 1867, when the arrangement
between Austria and Hungary was made. There
tons, and this question itself was so intricate,
that it was thought advisable to adjourn its
solution rs the privilege of the National Bank.
which lasts till the end OF 1875, seemed to admit OF
such adjournment without creating much incon-
venience. Hungary did not indeed, recognize this
privilege binding, and as the arrangement with
Austria did not mention the bank as one of the in
situations common to both sides OF the Empire,
II
CURED IT, to establish a national bank Of
her own, and the status quo was &C
copied in good faith on both sides. For q
couple Of years things went on smoothly enough on
both Sides The Austrian National Bank, anxious to
maintain its privilege over the whole Empire, did
everything to make things pleasant. Confidence
being restored in the stability Of political instItu
tions, as regulated by the compromise with AUSTRIA
gave fresh impulse to industrial ana commercial
| activity IN Hungary. The Impulse was vigorously
| promoted by good harvest for two years, and an
export OF grain and other raw produce such as had
Financial
establishments were springng up in every direc-
ton, all Of which naturally expected to md sup
The Vienna establishment endeavored in every
way to meet the demands thus made upon Its re-
sources The d0tation for its branches in Hungary,
which had been Fl, 500, 000 was successfully more
than doubled while the low discount made
easily accessible to every one All this lasted till
about the middle OF 1862 when gradually change
arose The impulse given to industrial ana nan
however healthy and legitimate in the beginning,
had gradually degenerated into speculation OF the
widest kind. Every one was getting up companies,
or, at least, trying to obtain his share in the
fabulous gains which were realized by the pro-
lnoters the shares Of companies which had not
yet begun their operations were driven up to twice
and more OF their nominal value, while the whole
disposable capital in the Empire would have been
scarcely sufficient to supply half OF them. Foreign
capital, which it had been confidently rcckoned
upon would flow In freely, did not come in so
of capital in the country, and the result OF all THIS
was violent reaction, which, in The Autumn OF
1863, eliminated IN monetary Crisis. TO make
things worse, the harvest had been very in
different, not to say bad; so that the relief which
might have been expected on this side fell away
likewise. As this state OF things was confined to
Hungary, but extended to Austria likewise, the
bank thought 1t necessary to raise its discount
to apply the most stringent measures to protect Its
reserve OF notes. A great disaster the conse-
quence. Shares OF every kind fell to fourth and
less Of their former value. Most Of the indus
trial establishments being short OF working capital
and relying easy discount were, II not ruined,
at least crippled for years. and in the bitterness OF
I'M fAo nj tVtn hn rof
OF the many causes which had produced this
deporable result only looked out for scapegoat,
which was found Ia the National Bank 1t was all
the fault OF this institution, winch. by Its anti
quated, heavy mechanism and the exclusive con-
sderatiOn Offts own interests In preference to the
interests OF the public, had brought about the
calamity.
Il would be mmateria to inquire how far these
changes were justified, but the impression has
remained from that time tnat this institution Is
not up to the requirements OF the present time and
needs thorough reorganization.