Mr. Delaplaine to Mr. Blaine
Vienna , April 15, 1881. (Received May 5.)
Sir: For the purpose of covering the estimated deficiency in the budget of 1881, the Government of Austria has been authorized by a law, passed by both houses of the Reichsrath, and which has received the Emperor’s sanction, to procure the sum of 50,000,000 florins, Austrian currency, through the issue of obligations of indebtedness, to be free of taxation, and not subject to conversion or redemption at any defined period, also bearing an annual interest of five per cent., payable in paper money. To effect this an emission of the amount of about 54,400,000 florins, in round numbers, being at the rate of 92, has been made by the minister of finance, which has been taken by a syndicate represented by the Bodencredit institution.[Page 55]
Yesterday this loan was introduced upon the Vienna Stock Exchange at the rate of 95, whereupon an enthusiastic speculation arose, and it advanced to a fraction above par. A reaction then ensuing, it closed at 98½. An evidence is hereby exhibited of the great quantity of foreign capital at present seeking investment, even in the depreciated public securities of this empire, national, as well as those of Austria and Hungary separately, all of which have long been regarded by capitalists with disfavor.
I have, &c.,