The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1878-09-28

Paper Money in Austria.
The financial history of Austria for the
lastAsO years, crowded full as il is full ofE
terfb,h Government crises, of panicsl re-
sultipf ih the ruin Of thousands OF her
solid Aness meH, q seasons of the deep
ii fes amonethe massesofher people,,
of widespread paralysis to every industry
in the all the of an
unlimited issue of paper moneys carries
withdrawing to the statesmen, tfnan-
.ciets and the citizens of this nation, as
solemn rs It is peremptory. To-day Aus
tria'swhole political and moneyed system
is rotten withdisease fromthis cause alone,
notwithstanding the herculean efforts she
has occasionally made for recovery. Cur
pectedcontemporary,th eTole eomsnsr
ci1l, has been ut pains to look into and
reproduce in d very Interesting form the
history of paper money in Austria. We
have seen nothing that conveys a more
forcible moral as to the evils OF quackery
in finance, or that should prosesa more
wholesome warning to all intelligent
Americans not to ignore the lessons of
wen attested experience.
The poison was irat introduced into her
blood IN 1862 by the seizure by the Gov
ernment OF the Vienna National Bank,
which had beenissuing amoderateamount
of notes that o reinterestan dcommanded
IaSpremium, andthe sending out ota food
ot nonsinterest notes for snms from 5 to-
d 0gulden, Although this was represent
tedto be o temporary necessitysi it was CON
tinued as the need forsupphes arose until,
IN 1906, the note Issue had arisen to3the
enormous amount of449,OO0,O06. Besides
this, were immense quantities OF counter
feits, which were SO difficult of detection,
and the laws againstthe crimeswerei so ses
we're, that people became afraid totakea any
NOTES, and this, of course, enhanced the
premiums Copper coins had also been is
sued s 0 base as to beupon a par with the
paper. TheconptrySwas in a terrible cons
ditiom The expectation of coin having
been forbidden, all industries were crush
ed, and smuggling was the, only business
that was profitable. Then came what a
called the ssredemption notes. which were
to represent coin, and&were given sin ex
change for paper at 1.-The rate of one to
three. This put the finishing stroke to
the peoples confidence in the Govern
msnt, The bank notes fell to50otor 100.
thento 500, and lastly to 1,095!
InFebruary, 1911, a crisis came. a pat
emit was sent out to the Government Off
GERS, with orders to break the seals at
O'Clock in. the morning of March 10th, and.
an hour later to poststhe document where
titcould be- read by the people. Some idea
lofthe condition of things anfbe.gathered
from the fact, that while the stars were vet
shining; excited crowds gathered in the
streets Of the cities, and in the darkness
that precedes the dawn. anxiously await
led the coming moment that should tell
Ithe.story of their future veal oriwoes And
this was the substance of what they read:
The Thousand million gulden's worth of
bank notes were to bereduced to one.ffth
oftheir nominal value, andiexchanged for
observation-disclosures, which have since re-
mainedithe Austrian. legal tender curren-
cy.s Everything was toEbe. paid in this,
taxes, salaries and pensions The smallest
noteaswere for l25 guldens, SO that poor
people who held these for any thing less,
could get nothing in exchange, and found.
themselves suddenly made beggars.
The Emperor had solemnly promised
in the patent, to issue only enough of
these notes to redeem the outstanding
papef,Ifwhich would take s2l2,oOo,oO0
guldsn. But they soon. ran beyond this,
andsnewnecessities arising, there seemed
to be:nothing to do but to have recourse
to morespapsr. To get around the Govern
ment promise; 50 as not to arouse the.
frenzy, the hatred and indignation of, the
people already sufficiently strong, the
notes were Issued under d new hame-
anticipation notes, which we're explain
ed to be exchequer bills for anticipating
the revenues In 1916, the amount. of this
ns: 5SsS siNssGFI - 1nnn non