New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-11-26
The PANIC AT VIENNA.
UNHEALTHY STATE OF TIE EUROPEAN MONEY
MARKET

UNHEALTHY STATE OF TIE EUROPEAN MONEY
MARKET.
TO the Editor Of The Tribune.
Sir: Although the financial panic at Vienna on
Saturday last of transtoy nature and originated
from the mIslnterpreaon Of certain remarks addressed
Nv the Emperor of Austria to the Parliamentary Dele
cations the fact that trifing a cause should
have created serious panic the BOurse furnishes
a striking proof Of the apprehensive condition OF the
European money market. That its present STATE Is
unhealthy In the extreme IL is impossible 10 deny
the temporary collapse on saturday last anorus
evidence that it no longer be depended upon as
a correct barometer of the political atmosphere us
altered conditions are not primarily due 20 political
reasons, but to causes Of economic character
and for some time to come its movements are hReiy
TO constitute not as hitherto the effect, but the cause
OF political incidens.
The fact is that the financial markets OF Europe
are face 10 face with very grave embarrassments, ana
they are threatened during the coming winter WIN
colapses OF far serious and lasting character
,has that which took place at Vienna last week. Tile
financial situation Of at least four nations has been
gradually going from bad TO worse, until now thefe
seems TO be no means OF escaping from crash
Portugal whose charge for her debt amounts 10
more than half OF her total revenue. finds her circuit
exhausted both at home and abroad, and no FUNDS III
her treasury TO pay the January coupons The
financial condition Of the Spanish Government is
almost equally grave, and alarming has the de-
probation Of the notes Of the Bank OF spain become
that even the most patriotic OF Spanish investors
have ceased buying. In Italy the financial crisis
shows no signs of abating. The banks are dis
credited trade is almost at sandstill, the local
authorities are over their heads in debt, and the Gov
eminent Is spending close upon third more thah IL
receives III the shape OF revenue. The nhahclai
condition OF Russia may be gagged By the present ex
iraordnary decline of the roube and by the fasco at
Paris of the recent loan of 500.OOo,OOO francs.
Were these four countries to conine their financial
embarrassm ents within their own boundaries, the
harm would be less serious. But unfortunately
their bonds are mostly held in London Paris. Amser-
dam, and in Germany. 1t is estimated that France
alone holds over S7O0000O 900 of Russian securities.
while those Of Portugal spain and Italy are dis
tributed be eeen England, Germany and France.
Now the markets OF each of these three countries
have been subjected In recent times TO severe trals
That of London has sustained blows in connection
with Argentine and other South American securities,
eliminating in the Barring suspension. France has
undergone the collapse OF the Panama Canal ana
of the Compton, dEscompte, while the rotten condl-
ton of the financial market at Berlin is manifested
by the failure of many Of the foremost and most
respectcd banking houses during the last few weeks.
All this has contributed 10 cause large lookup OF
capital on the part OF the bankers, and to create
feeling OF apprehension and hesitation on the part OF
specuiators and investors. To make matters worse,
lie harvests throughout Europe have been bad. and
not only has every branch OF raoe suneaeu IN Gone
tatlon OF grain from abroad have been heaV{ Inc
financial markets Of Europe can scarcely therefore
be described In sound c0ndiuOn or Us wen pre-
psred 10 sustain the onslaught of the numerous
breakers which are already In sight anead ana u1er
the circumstance II Is not surprising t h EUROPE,
is should turn with envious eyes toward her trans.
atlantic sister, who, under The present wise and
sagacious Administration, Is enjoying me greatest
and most abundant prosperity. ONLOOkEk'
New-York, Nov. 20, 1871.