New Orleans Republican. [volume] (New Orleans, La) 1867-1878, 1874-09-04
Our Securities in GerInanYo

OEP consul at Frankfort on t le- Main
! writing to the Depar. nene OF State. saws
| the rapid increase in the number of banks
! in Germany during the year 1873 has FRO
duced the dissster then feared. Many OF
them have been compelled to hGuldare, and
Gistrust has been brought upon all The
result and consequences have been ru;nous
| to men of small means WAC have bought
the stock or who have been induced to
! speculate by means Of the increased tacili-
ties OF borrowing money. The fall of
railroad securities il this market has
exceeded the prophecies OF the most skep-
t!calo Railroad bonds from the United
Staeess promising abundant security and
large profits and interest to the holder,
have been sold to Frankfort bankers at low
rates. who. BY means OF captivating state
mems and encOlraS -0g Words and in!tue
eneed bT hopes of great profe to- them
aelves, have succeeded in selling chem at
advanced rates to tha investors AID specu-
latorso who have scattered them throughout
tae length and breadth of Epropeo Bonds
have been issued fer the sole object Of mees
log the interest becoming due When the
amount OF bonds limited by law is wholly
issued che railroad either at once ceases to
pay interest or the amount necessary for
al instrument OF interest is borrowed aud
soon large floating deb. is crea..do The
ooudloluer IS taen asked to cont. butte TO
pay CT the floating debt Possession OF TIE
road IS never offered to the mortgage oonda
holders. but thev are left to contend against
the parties whom they have assisted, when
they could lind ne aid ~ tle U1i.ei States.
j. 2s a great mistake TO suppose that the
capitalists aud wealthy bankers % Europe
are che sole holders or Sac holders o.: rae
greatest position Of Cni.si States sove: i.
snent o: raliroai bonds. They e.. he'd, TO a
grea: e1!en:. by pai,ies whoss sole de.
peodence - the income :aereiron. They
are to be found, il tae smaller amounts, in
the hands OF the trader and mec:, aniG and
al: glasses. At she ptesen. time 1873. so
many railroads have tailed 20 pay their ~.
terest TIA: :hs road thas pays Is the excep.
ton. Now :!ie Ge. mar d;s:rusts al. l: is
useless to say or to demenstat that this
road ran not tai to pay rs Interest. They
are all alike condemned. The fsiiIre of
the States .. GeOrgia and Alabama 60 meet
Their LIABILITIES as principals or as guacs
snrnrs aas SeeS almost ia.a: to Stats
Credit The German can not see how a State
o. "a. wealth ns :aose Sta' :s. and with
powers OF faxatson. caa .ai! 30 pay !t: -
osi...as. ! hs Germans now 5agin 10 believe
tla: they haze been deceived and defraud.
ed: Tue? said sla: pa:'iss Interest i 20
se!i and introduce their bonds snso the
markets o: Europe exhibit aow no care or
regard sos shsM. 5u: On ehs ottec hand
s1roT obstacles - the wa. Of eaeir enf:rc.
in2 their liens. They also ind tina. eovere
essG states deny a1i disregard silejr sua.o
aatae5: thac tc3ui the distance they SEEM
Indifferent 81 them. ami almost aeem d;ao
pc1sd 70 tocges their liabilities or To wholly
avoiG taeir payment. The embarrassment
Of r .zoais TIA: are now .n19snai seems
sbe wo:aaa. remedy :a!csa wsth much loss
- soms parties. L: Is different win com.
p-eced roads. wlicI. il order 10 make :henl
profitable. oniy require sse business tna1
time wi, hi.ag 10 theMo
Tae aouo: az wais as the cre!ie Of Our
e9unts. las been reIIiei by the reckless.
ness ws.h which. uuier the laws S.as
asd coz. iratJ,as nave aeen allowed to issue
Da1ds. /: = & .w . BE- wholly sacr ised by
:.ie failures OF '.ar..ea to meet their pay
oentss :.se .aaD: ~ of the holder to compel
payment and the supineness ami it'd; +tero
euce T!-h which the cGul..y regards t:s:s
stare o: matters.
FTae c.p::,' o. Ei.ope has bsen sus.isd
tows"d the UH::, i So on .caun: Of the
ofi:pso'a an: hone of :;sher interest.
NOW tie Interest offered bv Eur0pesr en-.
''.p-i.: is equal to the usua! rates of inter.
est y Tie United Sta.5s. Hereafter tnis
capital viii sad aounla'lt use in !cs ow =
c]unl!C. As a pioo. Ot 'H!s i: NAV be
So ! .nas II 1872 shares ali bonds oi ri.
:r!enc "oye!.tments and new enf .rpriaas
we:e G:4.i:i II the market ol Fsank!o-: TO
';!e amor1: q: fl.0)l.90!. !.00).
I: IS - be hoped that under prcpe? uau.
asemen: ;ieiaul ng S~;: and rorp para. org
VIII ye. 81 ai.ie - Go justice no. only 20
the!- Grs :ico.s a. home. au: also to ,hele
eaaaAyi irving creditors abroad. - E'ash.
inc'aa Correspondence .Nel- E.rI. Hesaig.