The Financial State of Europe.

South Canterbury Times, Issue 4070, 28 April 1886, Page 3

The Financial State of Europe.

The paralysis of trade and commerce so universal is seriously effecting the finances of both England and the Continental Powers, the latter in an especial degree. The heavy harden of enormous armies and war material is pressing severely on their industrial resources,and augmenting their difficulties. The situation is well described in the “Melbourne Age" as follows:—“There is not a country in Europe, England being no exception, in which the financial outlook is not gloomy. a The revenue is everywhere and the demands upon it increasing. There is everywhere a deficit, tbqugh artful devipes are resorted to in order to conceal the fact or to minimise its extent. Everywhere the Ministers of Finance re> port that it is impossible to augment the revenue by the increase or readjust, ment of taxation. When necessity drives, however, impossibilities become practicable. All the public calamities are blamed on the commercial depression, as if it were an infliction, like the visitation of the cholera, beyond the reach of legislation or diplomacy. This will be a year of financial palliatives. Nothing that can be postponed will be grappled with Russia, after raising a loan to square accounts, has to confess to a further deficiency of twenty-five million nobles. France has qn enormous floating debt, which is continually increasing, aqd yet shrinks from the task of adding it to the consolidated debt, This is a dangerous position, for if payment of the dealing debt were demanded, as it may be, the country would be insolvent, Every device for the fixing of the debt without the formality of replacing the liability by a loan will be resorted to,bat the consequences will not thereby be averted. The deficits in Germany and Eogland,not being chronic, can be passed on to another year, but the course is a downward one. Spain has been employed in the task of ascertaining how she stands, and the revelations are such as to make her uncomfortable, although there will be less confusion in future. Ths remedy proEosed is to sell lands and everything clanging to the Slate that is saleable. In Italy and Portugal, the debt in proportion to the revenue is greater than in any other country. The depression in Holland is so bad that the colonial banks bad to be propped up by private benevolence. Germany is seeking relief by the establishment of monopolies in spirits and other articles of consumption. Austria and Turkey appear to be able to make capital ont of their very impecuniosity, but it is an expensive and hazardous game. This will be the second year of a deficit iu England, and the next Budget is looked forward t'p, atj

likely to be a curiosity, England, however, is better off than any other European country, because sheds paying off her debt by terrible annuities, and this goes far to balance the deficit. There is just one advantage which may result from this state of affairs—the want of money is conducive to the maintenance of peace.