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were to be restored every year to the en- of things was accompanied, in 1817 and joyment of full interest, and as many 1818, by an improved organization of the more to be bought in by the sinking fund. national bank. The shares, which at first This plan has hitherto been very success- stood at scarcely 500 guilders in convenful. By the gradual liquidation of the re- tion money, have now reached nearly 1000, demption and anticipation certificates, their and are in great demand, for they yield

an amount was diminished, June 30, 1825, to annual interest of sixty guilders. The 149,320,813 guilders (a guilder is about bank is, at present, wholly independent of forty cents); and, June 30, 1828, the the government. amount in circulation in Austria was only IV. Prussian Stocks. Prussia had no 784 million guilders. The metalliques public debt till 1787, but, on the contrary, have therefore come into the market in all had a considerable treasure in specie, and, the principal commercial cities of Europe. even under the reign of Frederic William In the year 1821, the whole amount of the II, till 1806, owed only thirty million dolnew debt contracted since 1815, or the five lars, which were to be paid off at fixed per centmetalliques, was estimated at periods. But the unhappy French war 207,960,290 guilders, and the proportion of 1806, and the more successful one of of the sinking fund to the debt at one fifty- 1812–15, augmented the public debt of seventh--the same ratio which the sinking Prussia; and, after it had been reduced to fund in England bears to the public debt. order, her stocks came into the market in The credit of these metalliques has risen the principal cities of Europe, like the very much. They stood, in 1817, at forty- English, French, Austrian, and other pubeight, but had risen, in the beginning of lic stocks. From the statement of Feb1823, to eighty-six, and even during the ruary 17, 1820, it appears that the capital war between Turkey and Russia, they of the debts bearing interest then amountwere at ninety-five. Besides these metal- ed to something more than 180 million liques, the before-mentioned Rothschild Prussian dollars (about 123 million Spanlotteries are well known in the money ish, and the yearly interest, or rente, to markets. The Austrian government, in 7,637,177 Prussian dollars. Several mil1820, negotiated, through a company lions have since been extinguished by the formed by Messrs. Parish and Rothschild, sinking fund. At present, the following a lottery loan of 20,800,000 guilders, and Prussian stocks are in the market :- 1. the soon after a second of 37,000,000 guilders, proper national stocks, which comprehend convention money. The shareholders in the greatest part of the public debt, and the first loan were to receive back their the proceeds of which, in 1820, were capitals, and, instead of interest, premi- 4,780,000 Prussian dollars (about 3,250,400 ums at the time of the repayment of the Spanish). They consist in obligations, capitals, which was to take place in the which bear four per cent. interest, and are course of the next twenty years. The to be completely discharged within five smallest sum which an advance of 100 years. The interest is paid January 1 and guilders can yield, is 120 guilders, and the July 1 of every year, both in Berlin and largest 120,000. In the most unfavorable in the provinces. Provision has likewise event, a man must wait twenty years for been made for their payment in specified his capital and premium. The second places in foreign countries. The certificates loan was opened July 28, 1820, at four proinise that the capital shall be paid back per cent.; and the government bound it- by the annual extinguishment of one milself, within twenty-one years, to pay off lion at par; but this regulation has been the capital, with interest and premiums, modified by a later one, ordaining that the by means of fourteen lottery drawings. stocks shall be diminished by being repurThe proprietors received certificates, dated chased, at the current price, till they stand January 15, 1821, each for 250 guilders. at par, and then the repayment shall comWhether a share in such a lottery can pro- mence.

The market value of these notes duce more than four per cent interest, de- varied, in 1820—23, between sixty-seven pends wholly on the time of drawing, and and seventy-five per cent., and, still later, the premium which chance may allotrose to nearly ninety; in 1828, it was at The price of the tickets of the first loan ninety-three. Of a portion of these oblivaries between 118 and 120, and of the gations, premium lotteries were formed, second between 98 and 102. On thirty millions being sold, accompanied an average, the premiums of the first with premium certificates, at their full and the interest and premiums of the sec- value in Prussian currency. The hope of ond loan are equivalent to an interest of five receiving a great premium on the drawing and four fifths per cent. This new order of these lotteries (tep drawings were to

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take place, one each six months) produced ployed funds. The violent measures of such a demand for this species of stocks, Napoleon's administration rendered it bethat they rose to 120—130 dollars and up- cessary for the bank to stop payınent, in wards. 2. The shares in the English loan consequence of the loss of all its resources which was negotiated with Rothschild, in The old system has been long resuned in London, in April, 1818. The nominal regard to all moneys deposited since 1800; amount is five million pounds sterling, at but the pressure of circumstances bas five per cent., and to be repaid within hitherto made it impossible for the bank twenty-eight years, a certain amount an- to fulfil its obligations in regard to the old nually, by repurchasing the notes, or re- capitals. The government has promised, deeming them at par, if they are worth it. however, that this debt shall be cancelThe certificates are expressed in English led. money, and the interest is payable in Lon- V. Russian Stocks. Previous to 1810, don. The unfavorable conditions, under Russia had no debt on which interest was which this loan was obtained, are to be at- paid, and of which the stocks were in the tributed to the emergencies of the period. market, except 83,000,000 guilders due i Though the interest is five per cent., only Holland ; and the paper was hardly found seventy-one per cent. of the nominal in the commercial world out of Amsteramount of the loan was received ; and the dam. For many years, this stock stood at government took the risk of the fluctua- par. In 1810, a loan of twenty millions tion of exchange in the payment of inter- was opened in assignats at six per cent, est and principal. In London itself, be- for which the government pledged ten fore the certificates were issued, they had million silver roubles, with six per cent

. ilrisen to eighty per cent. Besides these, terest, to be paid in five years to these there are the obligations of the Electoral who should not prefer perpetual annuities Mark, which are of an early date, and in assignats, or silver roubles. The design the Hypothekscheine, secured on was to diminish the immense quantity of gages of the public domains, which were assignats. It was intended to have many not created tils after 1806. Both yield four series of these loans following one anothper cent., and form together a capital of er, to destroy the paper roubles which nearly nine million Prussian dollars (above might be brought in by their means, and six million Spanish), which, like the inter- thus to raise the paper money gradually to est

, is paid according to the original en- par, or perhaps to put it wholly out of cirgagement. There are also the stocks of culation, and substitute silver money in its the provinces and principal cities. The place. Although these loans never semortgage stocks (Pfandbriefe) form a cap- complished the desired object, and seemed ital of perhaps fitty or eighty millions, the to be founded on mistaken principles, vet shares of which are bought and sold, and they helped to confirm the credit of the yield a secure income. These are created government, because every stipulation was ihus:-The landed proprietors, under the punctually fulfilled, and a regular financial authority of the government, have formed system was forming in regard to the pubassociations in several of the Prussian lic debts. The interest of the first loan in provinces, which borrow money on the silver was regularly paid; and the capital

, security of their estates collectively, and too, was repaid in the way stipulated, notmake loans to the individual proprietors, withstanding the distress to which the in consideration of mortgages of their kingdom was reduced by the war of 1812 separate estates. There are five of these The credit which the government thus aeprovincial associations in Prussia. To quired was, perhaps, worth the sacrifice the Prussian stocks belongs, also, the of some millions; for the state had handbank paper, which is transferable. The ly any other advantage from this loan. circulation of these notes, indeed, is some. These stocks, during their five years' conwhat difficult, for they are generally tinuance, were in great demand, and their made payable to the particular individual price speedily rose above their par value to whom they are issued, and cannot be in assignats ; but this was not strange

, for transferred without legal formalities. The paper roubles were not worth in the quarroyal bank receives money at two or ket one third of silver, and, by the terms three per cent a year, and repays the of the loan, a silver rouble was paid forer. money deposited, sinall sums on demand, ery two paper roubles advanced. Only a and larger ones at fourteen days, or four few of these obligations are now in ciruweeks' notice. Hence it is filled with de- lation, for, in 1815, they were nearly all posits, trust money, orphans' money; and cancelled. This system, however, was many capitalists invest in it their unem- continued under better conditions as to

garded the government, and to a much and the multitude of wealthy capitalists in greater extent. The diminution of the the country, the stocks have maintained a assignats was the pretext for every meas- high credit, and, during the thirty-two ure. But the deficit in the income, and years of tranquillity, from 1748 to 1780, the expense occasioned by the war of they were in such demand, that, notwith1812, were perhaps the principal causes standing their low rate of interest (two of the successive loans. There have been and a half per cent.), they brought from three or four since 1816. The two first, eight to ten per cent. above their

nominal made in 1817, at Petersburg, of seventy value. But owing to the wars with Eng. million roubles in assignats, were mostly land and France, the finances of the counreduced to silver money at a fixed valua- try were thrown into disorder; it is probtion; the third and fourth were in England, able, indeed, that these wars only hastened in 1820, and amounted to forty million a calamity which must, sooner or later, silver roubles. All the stocks of this kind have fallen upon the people ; for the debear five per cent. interest, and are regu- ficit in the income was increasing every

lated after the manner of the stocks in year after 1786, and the public debt, of • other countries, wherein the govern- course, was continually accumulating.

ment merely pledges itself to discharge The expenditures were multiplied by the the stipulated interest punctually. The oppression of France, and the deficit hiquidation of the capital by the sink- daily grew more enormous. Under the ing fund is effected by re-purchasing administration of Louis Bonaparte, in the certificates or otherwise, as the state 1807, 1808, and 1809, loans of förty, thirof the treasury renders most expedi- ty, and twenty million guilders, to cover ent. The arrangements for the public the deficit, were obtained on tolerable condebt are similar to those in France ditions, as Louis Bonaparte maintained and England. All the debts since 1817 the credit of the state by opposing with have been registered, with the creditors' firmness, on every occasion, the reducnames in alphabetical order. At the same tions of the public debt, which his brother tine, the creditors receive notes (inscrip- proposed. When Napoleon united HolLions), which contain what is written in land with France in 1810, it was found the book of registry, and the conditions that the national debt of this little kingand stipulations of the government, and dom amounted to the enormous sum of are so prepared that they may be endorsed 1200 million guilders (about 480 inillin blank in a foreign country, being veri- 'ion dollars). Napoleon commenced a fied by a Russian consul, and in this way system of reform in the financial detransferred to any one without difficulty'; partment, by seuing aside two thirds of and the directions, necessary in case of the debt, as had already been done in transfer, are contained in the inscription. France. The remaining third was to be An important traffic is now carried on, in registered in the great book of France, all the markets of Europe, in Russian as a part of the general national debt, stocks. The interest on the English loan and, like the rest, to pay an interest of is payable, not merely in Petersburg, but five per cent. This measure, however, in Hamburg and London, in the money was never carried into execution. After of those places, at a fixed valuation, and the establishment of the kingdom of the the income of the Dutch stock is payable Netherlands, subsequent to the fall of Nain Holland. The report of the minister poleon, the debt was newly organized, of finance, January 1st, 1822, made the and, by the law of May 14th, 1814, was whole debt of Russia to consist of the fol- regulated by the following principles :lowing sums :-). The Dutch, 48,600,000 1. The two thirds of the debt abolished guilders ; 2. the domestic, in silver rou- by Napoleon were again acknowledged, bles, 33 millions; 3. the domestic, in pa- although his measure was, in a degree, per roubles, 296 millions. The fund des- sanctioned, by the division of the new tinel for the liquidation of these debts is debt into a real or active, and a nominal one anillion in silver roubles and five mil- or dead one; the interest of the first (the lions in paper-about in the ratio of one third retained by Napoleon) was to be to filty. Nearly ten million silver roubles paid from January 1st, 1815; and the inare necessary for the payment of what is terest of the latter (the two thirds abolannually due on these stocks.

ished by Napoleon) was to commence VI. Dutch Stocks. Although the public gradually; so that every year from four to deht in Holland has been very great from five millions should be put on the same the earliest times, yet, in consequence of footing with the active debt, as to the paythe regular fulfilment of all obligations, ment of interest of the abolished debt. All subsequent obligations were required have hitherto found purchasers in the Euto be presented, and for an advance of ropean markets at low rates. six per cent. in specie, were changed VIII. Spanish Stocks. The history of into new obligations, of which all were the old debt of Spain is a chaos of confixed at two and a half per cent.; in such fusion. It has been always loaded with a way, however, that two thirds of the arrears and unpaid interest

. According new notes were assigned to the dead debt, to the statement of November 29th, 1821, which paid no interest, and only one third only a part of the Spanish debt bears inof the amount was transferred to the new terest. The part which does not bear indebt, bearing interest from 1815. Chari- terest consists of unpaid pensions, amutable institutions, holders of life annuities, ties, and many other unpaid and floating and some other classes, however, had debts, but principally of paper money. some particular privileges. But the debts These were estimated in the above mencontracted during the French administra- tioned year at 7205 million reals, or about tion were put under less favorable condi- 345,840,000 dollars. The public obligations. These obligations, frequently in- tions bearing interest, which consist partly creased by new loans, formed the Dutch of old debts, new loans, &c., amount to stocks found in the money market, of which 6,814,780,363 reals, or about 327,109,15 those that yielded an actual income, were million dollars, of which the yearly intersold before the Belgic revolution for forty- est is estimated at 235,966,630 reals

, er six to forty-seven per cent. Shares in the 11,326,390 dollars. A plan was adopted nominal debt are regarded like shares in during the constitutional government

, for a lottery, and stand at one quarter per paying off a portion of the debt by the cent., or even still lower (five eighths); sale of the estates of monasteries, the this is sufficient evidence, how little the property of the inquisition, and the pubpurchasers think of soon obtaining any lic lands; but the restoration of the alberincome from them. In 1819, seventeen lute monarchy in 1823, put a stop to its million guilders interest were to be paid. execution, and the loans made bythe cortes The sinking fund was fixed, in 1821, at were declared to be invalid. Great deficits 2,500,000 guilders annually. Besides have since taken place every year, and til these debis, which include those of Bel- this day new loans have been utterly isgium, the government of Holland assumed sufficient to cover them. The stocka the responsibility of paying a portion of which are most commonly found in the the Russian-Dutch debt (of eighty-three market at present are:-1. The Dutchmillion guilders), and 1,443,750 guilders Spanish obligations of 1807, created by were devoted every year to the discharge means of the house of Hope & Co., each of the interest and gradual liquidation of of which is for 1000 Dutch guilders with the capital. These obligations belong to interest, payable annually. The interes the unfunded debt, as does also the Aus- of this loan of thirty million guilders, and trian-Belgic debt of about six million of several of the other debts, has never guilders, and other obligations little known been paid since the French invasion of out of the country.

1808. 2. The stocks of the Laffitte loan of VII. Veapolitan Stocks. The Neapol- fifteen million dollars, which was le itan finances, on the whole, have been tiated in Paris. Each certificate is to subject to no little disorder; but, at the one hundred dollars.

A lottery rieket is close of the last reign, measures were connected with every one, by which the adopted for the punctual payment of the certificate gains a greater or less preinue stipulated interest and rentes, even though (from 18 dollars to 20,000) whenever is fresh loans should be required. The number is drawn. The obligations as occupation of the kingdom by Austrian to be paid within twenty years from the troops added to the national debt upwards agreeably to the regulations for the annua. of nine million ducats (about 7,200,000 extinction of a portion, with the premier dollars). The French system of man- ums belonging to them. 3. The cele aging the public debt has been taken, to a tificates of the loan of 1821, negotiate. considerable degree, as a pattern, the shares by the house of Ardouin, Hubbard & of the creditors being registered, and Co., fixed at different sums in dollar bought and sold in the same manner as and with interest payable semi-annual in France. The yearly amount of income in Paris and London. from the debt was estimated, January 1st, cates of the national loan of 1821, whic: 1821, at 3,882,000 Neapolitan ducats is connected with the last, or rather (about 2,928,000 dollars). This income fornis a part of it. Every certificate is for is five per cent. The Neapolitan stocks 150 dollars in specie, but the old obligo

4. The certit

tions of the governments, as well as shares a high degree of credit, although the in stocks No. 1 and 3, and premium cer- guarantee given by the states, of their astificates, are received by the government sociated kingdom, Sweden, to the stocks in return for these new stocks, according of the Frege loan, has pot secured to the to their market value. These new certifi- creditors a regular payment. For this cates were to bear five per cent. interest, reason, Swedish certificates are not found paid annually at Madrid, Paris, or Lon- in the money markets. don, at the option of the holder.

XI. Stocks of the German Confederation. IX. Danish Stocks. The obligations on Nearly all the states in this body have account of the domestic loans, made for the public debts; their notes, however, are sake of the liquidation and better regula- scarcely ever seen in the markets of iontion of the paper money, are scarcely don, Amsterdam, Paris, Frankfort, and found at all in foreign markets. But those Berlin; they remain chiefly in the states that sprung from the loans of 1818 and where they originated, and are monopo1819, in Hamburg, and from the English lized by the capitalists and institutions of loan of 1821, have a wider circulation. those states. The certificates of the kingThe first loan of 1813 gave rise to obliga- dom of Saxony enjoy the highest credit tions at five per cent. each, of the amount of all. Though the debts of this little terof 3000 marks, Hamburg banco (a mark ritory amount to sixteen and a half million banco is about 341 cents), which were convention dollars (a Saxon dollar is about sold at par, because they involved a pre- ninety-five and a half cents), the people mium, in which every certificate gained, believe the government to be so consciat least, 400 marks banco, in stocks bearing eptious and trustworthy, that they dread six per cent. interest, and under the most rather than desire the repayment of their favorable circumstances, 200,000. After capital, which is in the hands of the state. the drawing of the premiums, the five per From this cause the five per cents have cent. obligations of this description stood risen to 110–111 per cent., and the three at 78–83; the six per cent. at 91–96. per cents to nearly 100; and the state has The loans of 1818 and 1819, in Hamburg, thus been enabled to exchange the former were concluded under similar conditions. for four per cents. The new four per The English loan of 1821 amounted to cents now stand at 104–105, and would three million pounds sterling, and the ob- stand still higher, if a small portion were Tigations vary in amount from 100 to 1000 not paid off semi-annually; the three per pounds sterling. All these loans are enti- cents stand at 101, and the two per cents tled to interest semi-annually, till all the at 90. Next in credit to Saxony are the capital is paid, provision being made for kingdoms of Würtemberg and Hanover, cancelling a portion of this capital annu- and the cities of Hamburg and Frankfort, ally. No loan could well rest on a firmer whose four per cent. notes are all nearly basis than the Danish. In regard to the at par, or even above it. Not far below premium notes, it is left with the govern- these are the certificates of Bavaria, Bament to repay the capital at pleasure. All den, Mechlenburg and Hesse-Darmstadt; the rest are gradually paid in full, as their and it is a general rule that the credit of numbers are drawn, and all the stipula- the German states is greater, and their Lions have hitherto been punctually ful- certificates stand higher, in proportion to filled.

the smallness of the states. These cerX. Norwegian Stocks. They arise from tificates, however, are not proper subjects the loan of 2,700,000 marks, concluded in of comparison with those of the larger 1819, in Hamburg and Berlin, by the king governments. In the smaller states, alof Sweden and by the Norwegian states, inost all debts are contracted on condition and cousist of obligations, which vary of being repaid within a limited time, and from 3000 to 300 marks banco. The the measures adopted afford the creditors method adopted to repay the capital is, to good reason for believing that the promre-purchase the certificates as long as they ises will be fulfilled. are below par. Another Norwegian loan XII. United States Stocks. In 1775, when at six per cent, was negotiated in 1822, at hostilities commenced between the United Hamburg. It amounted to 2,400,000 colonies and Great Britain, the Amerimarks banco. It is to be entirely paid off cans had no treasury, nor any organized in twenty-nine years, in semi-annual in- system, to direct their resources. Constalments. The payments have hitherto gress authorized the issuing of a paper been regularly made; and this circum- currency, and loans were obtained from stance, together with the guarantee of the foreigners, and from persons within the states, seems to have given to these loans country. In 1783, the debts of the U.

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