The Austrian and Hungarian Ministers have at length brought to
a conclusion the negotiations, so often resumed and broken off, for the renewal of the Dual system established in 1867. On all points but one an agreement has been come to. The Bank question, however, which from the first has been the obstacle to a settlement, still proves insoluble. The Hungarians will not admit their liability for any portion of the debt of £8,000,000 due by the State to the Bank of Vienna, and contracted in the old days of absolutism. Moreover, they insist upon a State Bank of their own, which shall aid in the funding of their debt, and at all times shall be ready to make advances to their Government. But Austria refuses to allow Hungary further facilities on the road to bank- ruptcy. Moreover, the Austrians are anxious to prepare the way for a resumption of specie payments, and the establishment of a State Bank at Peath, with the right to issue inconvertible paper, would be a step in the opposite direction. On the whole, the Austrians are in the right, but the Hungarians will probably win.
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