DISCUSSION PAPERS DISCUSSION 3 DISCUSSION PAPERS DP/53/2006 BULGARIAN NATIONAL BANK The Balkan Railways, International Capital and Banking from the End of the 19th Century until the Outbreak of the First World War Peter Hertner A paper presented at the EABH Annual Conference ‘Finance and Modernisation’, Wien, 20–21 May 2005 June 2006 DISCUSSION PAPERS Editorial Board: Chairman: Garabed Minassian Members: Statty Stattev Nikolay Nenovsky Mariela Nenova Secretary: Lyudmila Dimova © Peter Hertner, 2006 © Bulgarian National Bank, series, 2006 ISBN-10: 954-9791-95-5 ISBN-13: 978-954-9791-95-2 954-9791-80-7 Accepted April 2006. Printed in BNB Printing Center. Views expressed in materials are those of the authors and do not necessarily reflect BNB policy. Elements of the 1999 banknote with a nominal value of 50 levs are used in cover design. Send your comments and opinions to: Publications Division Bulgarian National Bank 1, Alexander Battenberg Square 1000 Sofia, Bulgaria Tel.: (+359 2) 9145 1351, 9145 1978, 981 1391 Fax: (+359 2) 980 2425 e-mail:
[email protected] Website: www.bnb.bg Publication recommended by the Bulgarian National Bank Editorial Board of Finance and Banking History Contents 1. Baron Hirsch and the Oriental Railways, 1869–1890 ...........5 2. A New Financial Holding: Bank für Orientalische Eisenbahnen, Zurich .................................................................. 21 3. The Austro-Hungarian Solution ................................................ 29 4. A Few Concluding Remarks ..................................................... 34 References ........................................................................................ 36 SUMMARY.* During the second half of the nineteenth century railways, ‘the very symbol of rapid progress’**, became increasingly one of the vital instru- ments for the integration of nation states, multinational empires, and colonies throughout the entire world.