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Leader (1850-1860), 10th November 1855, Edition 1 of 2, Page 1082, Untitled Article

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      Untitled Article

      AUSTRIAN FINANCES . ( From a Correspondent . ) The public in Austria awaited -with great anxiety the disclosure of the projects of M . de Brack . It was supposed that they might go far towards reestablishing the rained and discredited finances of the empire . After long delay , and much hesitation , the scheme of the minister was published ; it proved at once a failure , and thus vanished all the illusory hopes that have " so long been entertained .

      M . de Bruck ' s plan was to render the Government and the Bank independent of each otherto found a great establishment of Credit Mobil ier , ( which would rival the Bank , and thus destroy its monopoly ) , and to afford every private association of capitalists facilities for organizing establishments of a similar character . By these devices , M . de Bruck intended to multiply the money-resources of his G-overnment , to pay the balance of the debt due from the State to the Ba&fe ? and to compel the Bank to withdraw the

      excess of notes , and at the same time to discount those already in circulation . One great object of these operations was to restore the depressed credit of the Exchange , and to lessen the enormous difference which now exists between the nominal and real value of the paper currency . It cannot be denied that the project was subtle enough , and tolerably well arranged , but the chance of success was from the first very doubtful , and now unforeseen circumstances have brought M . de Bruck to a result the very reverse of that ho bad in view .

      Assured of the assistance of Isaac Pereira and Co ., he saw with pleasure , springing up between that firm and the nouso of Rothschild ' s a growing rivalryand jealousy , which promised to advance his projects , when lo I a shock was , felt in Paris , which overthrew all the Austrian minister's airbuilt castles , so that there remained no other means of escape from the monetary pressure but by applying to that very Bank , the privileges of which he had sought to destroy . It _ is probable that the Bank will only accede to his wishes on terms very advantageous to itself ; and , before entering into a now bargain , will insist on the proscription of all rivals and competitors . It is known that the Government owes the Bank the following sums : —>

      1 st . 61 , 000 , 000 florins ( value of Vienna ) of notes withdrawn from circulation , one half of which . bear no interest , whllo the remainder , bearing four per cent ., leave an average profit of two per cent . 2 nd . 43 , 000 , 000 florins at two per cent ., a debt contracted on the 23 rd February , 1852 . and for which the funds of the salt-pits are held ae security . 3 rd . 400 , 000 , 000 floriijs , balance of dobt for taking up the Treasury bills : this is secured on the revenue of the Custom-house . 4 th . Upwards of 1 , 000 , 000 florins , for which the Government itself is security . Thus we have an avowed debt of 104 , 000 , 000

      florins , -while many other transactions have taken p lace which have never been exposed to the prying jrnblie eye . Now , the Bank has in circulation little less than 400 , 000 , 000 of bank notes , while the cash in hand never exceeds 48 , 000 , 000 florins , to this may be added 80 , 000 * 000 florins of bills of discount , and 90 , 000 , 000 florins of money advanced to the Government , for which the State Papers are held as security . Should the Bank wish to realise the last two items , it would but be too happy to obtain ready money to the amount of one half the nominal value . The Bank would thus realise a fund of 130 , 000 , 000 florins , against an issue of 400 , 000 , 000 bank notes , so that the proportion between cash and paper is as one to three . . From this it will be seen that the Bank could , although with some difficulty , continues its ordinary payment of current liabilities ; but should a crisis occur , this immense quantity of notes would put its credit in imminent danger . Even if the eighty or ninety millions of bills at discount were invested in order to diminish the number of bank notes in circulation , the difference would only be the greater , for , although the notes would be reduced to 300 , 000 , 000 , the ready money would amount to no more than 50 , 000 , 000 florins , that is to say , a proportion of one to six . Thus , if the Bank were to discount its bills , its embarrassments would be materially increased . M . de Bruck has now proposed to give to the National Bank , as a security for the Government debt of 170 , 000 , 000 florins , a quantity of -waste land , with power to let , or even to sell it . He also proposes that the National Bank should be authorised to create a new mortgage bank with a capital of 20 , 000 , 000 florins , and power to add new shares to be paid by ready money . Now the waste lands of the Austrian Empire , which are valued at 400 , 000 , 000 florins , scarcely yield a revenue of more than three or four millions . The only use , therefore , the Bank could make of them would be to sell them , and this would be a tedious and difficHlt operation , as purchasers to the amount of 175 million florins are not easily found . The Bank proprietors , though fully aware of this , have accepted the proposed security , as an investment for the attraction of foreign capitalists who may be disposed to advance money . At all events , the Bank must make the best of its bargain , since the disproportion between the paper and the metalic currency has caused such an exorbitant rate of interest on the latter , that the Bank finds itself extremely hampered in all its operations . Itis true that all commercial transactions with foreigners , and even between the various provinces , are affected in no small degree , but public pro sperity is never taken into account by Austrian Ministers of Finance . But all these efforts are merel y to square the balance of old debts . It still remains to be seen how the Government intends to meet its accumulating difficulties . Austria wants money , not only to cover her increasing deficit , which has been augmented by her armed neutrality and the high price of provisions , but baa also to meet the now and extraordinary outlay necessary to repress the spirit of rebellion which may at . any moment break out in one or other of the Austrian provinces . JTrom all wo know of the Empire , wo must conclude that the above operations are the prelude to a new loan , which will probably bo negotiated by the National Bank in the various European money markets . The position , nevertheless , would remnin almost unaltered . The Bank , while receiving the common lands , would advance new sums of money ; the publio would suffer from being compelled to take paper payments , which would only bo discounted at an exorbitant rate of interest ; state creditors would ulways be paid with notes on which they would lose one-third of their capital whenever they wished to exchange Austrian for foreign -values , and tlic only result would bo , that instead of one monopoly there would be two , viz tho National Bank and the Mortgage Bank , both of which would bo at tho mercy of the Government . Foreign capitalists will , therefore , do well to remember that the bankruptcy of Austria , though it may be postponed for a short time , is novitnble .

      Untitled Article

      i 6 $ 2 - ¦ TIE LEADER . [ No . 294 , Saturday ,

      Untitled Article

      Healt ' h of XiONPON . —Ine mortality in London is still below its average rate , for 919 deaths were registered in the week that ended on Saturday , November 3 rd , or 193 less than the corrected average of previous years . At the annual rate of 17 iu 1000 , which rules in the healthy districts of England , the deaths would be 836 weekly in London , so that the deaths in the last week by unnatural causes were 83 or twelve daily . 227 persona died by zymotic diseases ; 14 by small-pox , 11 by measles , 7 O by scarlatina , 22 by hooping-cough , 13 by croup , and 49 by typhus and the various forms of fever . In one house , 24 , Ewer-street , St . Saviour , Southwark , 3 children died of small-pox within 5 days . Scarlatina still prevails with much intensity in St . Pancras . The deaths from diarrhoea ( 24 ) are much below the average number ; yet 3 cases of death from cholera are recorded . One of these cases occurred in the Millbank Penitentiary ; two in the Chelsea district . The mortality is much above the average in Chelsea , Kensington , and St . George , Hanover-square , which are still supplied with the impure Thames water ; while the districts that now have better water on the south side of the river , experience a lower rate of mortality than they did in the previous ten years . Thus in the last two weeks the deaths in Bermond sey have been 10 and 10 ; while the deaths in the corresponding weeks of the ten years 1845-54 ranged from 18 to 34 , and were 25 on an average . Bermondsey wag then supplied with the dirty water of the Thames at Battersen , and te now supplied with the water of the Thames from Hampton , six miles _ above the tidal range . 124 persons died of consumption , 68 at the ages 20-40 , 28 at the ages 40-60 . Apoplexy and paralysis were fatal to 33 persons , heart disease to 33 dropsy to 11 , bronchitis and pneumonia to 122 persons 4 7 deaths by violence were registered in the week . * Last week , the births of 671 boys and 675 girls , in all 1 , 346 children , were registered in London . In the ten corresponding weeks of the years 1845-54 , the average n umber was 1 , 440 . — From the Registrar-Generals Weekly Return . Rise in the Price of Sugar . —A meeting ot the grocers of Liverpool has been held at the York Hotel , Williamson-square , Mr . Tate in the chair . On the motion of Mr . Basford , it was resolved that on and after the 2 d of November the lowest price of moist sugar be 6 d . per lb .. and the lowest price of refined sugar 7 d . per lb ., irrespective of quality . America .. —The question of the disagreement between the United States and England continues to furnish subject for discussion . The Washington correspondent of the New York Herald , Writing on the 22 nd ult ., says : — " It is reported here to-day in diplomatic circles that the British Minister asserts that the late attempt to convict him of a violation of the neutrality laws of this country was the result of a conspiracy of foreigners to embroil the two Governments , and that at the proper time he will show such to be the case . Furthermore , Mr . Cratnpton intimates that , should his recall be consummated , no successor would be appointed in his place . " The American vessel Maury was laid under embargo by the United States authorities , on the complaint of the British Consul at New York , who stated that she was being fitted out as a Russian privateer , with the design of intercepting one of the Cunard steamers from Boston , and taking her with the specie on board as a prize , but she was afterwards released by directiou of the district attorney , who acted on affidavit of the owner and with the sanction of the British Consul , it having been proved that she was going to China , and that she was armed lor protection against pirates . The Slavery Question in Kansas . —The elections in Kansas have resulted as was predicted . The pro-slavery ballot on October 2 nd returned General Whitfield to represent the territory in Washington ; and the anli-slavery election of the 9 th has chosen Governor lteeder to represent the same constituency in the sumo place . Consequently , Congress will now be called upon to settle this question . The latter party have also elected delegates for the purpose of forming a State Constitution which will probably be completed , with a clause prohibiting slavery , before Governor Reeder leaves for Washington . This is a bombshell that promises to blow most of the other business ot tue session quite out . of sight—Times' New York Correspondent , i Cardinal Wiseman . —A letter in tho Oazetta «» Modena , a paper generally very well informed on Roman afluira , says that Cardinal Wiseman is positively to resign the metropolitan church of Westminster to nu present coadjutor , and become Prefect of the Vatican VhITloss of the Brio Brenda . — The mag istrates of Sundorlantl have held an investigation into tw eu cumstttiiccs of the loss of tho brig Brondn , wnu . " stranded during the gale of last week , and » nto , " charge against the master , Thomas Bell , namely , tn »» he wu 8 drunk , while the vessel was in distress . » eV 0 ^ witnesses were examined , all of whom spoke to u absolute intoxication of the master . The deposltio ««« of tho witnesses will be remitted to tho Board <"*"" £ ' In tho meantime , wo understand the mastef ' 3 certincmo hus been suspended .

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      Jai > a . n . —' It ia atutcd that the American Government consider tho Japuneao interpretation of tho troaty with the United StateB is correct , and that no efforts will bo made to intinaidato Japan into receiving American subjects .

      Untitled Article

      bas already gone half way . At one time , we should have expected thai he would have signed himself " John , Archbishop of Tuam , " and have flung the schedule in the face of the Income-tax Commissioner , glorying in the breach of the law , and in the fine for the offence . But no ; by abating his own title , John of Ttjam thinks that he can evade the tax ; and while set pains and penalties could not make the Archbishop blench , the hope of saving a little money makes the lion content to sneak . Now it is evident that if the currency-doctors had their . way , and the country was deluged with paper , the value of which nobody knew , the potency of this thing called money would never have been brought to its present perfection . The Spartans used mouey , of which a purseful was a cartload , for the very purpose of preventing bribery . No doubt the French Republicans found how difficult corruption was , when to bribe a man you had to slip into his hand a large bale of assignats . Really , it might have great moral results , if we were to repeal the Bank Act of 1844 .

  • Citation
    • Leader (1850-1860), Nov. 10, 1855, page 1082, in the Nineteenth-Century Serials Edition (2008; 2018) ncse-os.kdl.kcl.ac.uk/periodicals/l/issues/vm2-ncseproduct2114/page/14/