, 1874-08-14

Tho German DixtruHt OF Theme

= Tho German DiXtrtsHt OF T1scnss
WssiIISdToN, Aug. 11.-Our Consul ut Frauk-
fort-on- thc-Slaiu, writing to Che Department of
State, sayB:
"rlro rapid increase in tho number OF banks
in Germany during tile year 18G2 haH produced
tho daasscr that was then feared. Many Of
thom have been compelled to liquilatc, and
tsistrl1st has been brought upon all. The result
and consequences have boon ruinouB to uen of
small n1oana who laye bought tho sioux. Of WHO
hive been in(luced to upecunte by means Of tho
Increased facili:ics Of bonowing money.
"The faI1 of railroad securities In ths mnr1et
has oxrcedeJ tho pronhecics Of tho most skepie-
nj, 1saiiload bonau from tho United Statos,
promising abundant security md large profit
ilutt interest TO tho holdor, have been sold to
Frankfort bankers Mt low rates. who, by 5neans
words, nnu ina,1cnced hopns Of groat profits to
thelnaolyes, lave succeeded in HolinE them at
advanced rates to tho investors and Hpeculators,
WHO havo scattered thcm throughout tho lcugth
Bonds hAyc been issued for the sole object
Of meeting the interest becoming duo. When
the amount Of bonds limito1 by law is wholly
isaued tho railroad oitlior at onco ceases to pay
intero8t. or tue amount necessary Tor IN tuBtall-
mont OF interest borrowed. and soon large
floating debt is orcated. The bondholucr ia thou
asked to contribute to pay off tho floating dubs.
pussoasion Of tho road IL never offered to tho
toni against the PARTIES whom they have assisted
when thoy could tnd 10 aid III the United States.
ut iv great mistnke to suppose that the cap
ita}istH mud wonlthy batl}orB OF Europe aro tho
sole holders. or the llotde.s OF tho greatest por
ton Of United Statca Goyornment or railroad
honda. Thoy are held to great e1tent, by tho
nnrtsea wt,oae solo dependence Ia tho inaoma
| tlaeretrom, Thay aro to ba fouud III tha H,nal-
ost amounts it the lands Of tho trader aud mo
chanie, aud Of all olassss; At tug preaout time
{13T3 so many railroads have teiled to pay thoir
Interest that the road that pays ia tho excap-
ton.
"Eow tue German distrusts all. II is useleas
to shy or to demonstrate tint this road capnot
ton,uot,. Tho failure Of tho States Of Georgia
and AaRbau,R TO meet their liabilities ns prlnGl~
| pn1s Or as Euarantora has been almost fatai to
btate credit. Tho Gefmau cannot SEQ how .
State of tic wealth of those Suites, md With
powers Of taxation, can fai to pay its liabilities
"Tho Germans now begin to brlieye that they
| havo boou deceived anil deflauaet. They lnL
that parties interested to sell and Introduce their
bonds into the markets ct Europe exhibit no% NO
caro- or logard Tor them, but, OH tho otlor hand.
throw obstacles in tho way OF tho;r enforcing teir
| }icns. They also find that sovereign States deny
| aud tllsregard their guarantees, that from the
| distnuco thoy Becm Indifferent to them, and al
most see1n disposed forget tAoir liabilities,
| to wholly avoid their payment. Tha onbar-
rassmont Of railroads that aro now unfinished
| aocnls to Le without remedy, nnleBB with much
loss TO aomo parties. It il different with COM
! plctcd roads, which, in order to maEo thcln
| profitable, only require the busiucss that tino
| will hiring to them. +,
'.rhe llouor as vol as the credit Of onr co,1n-
try has hccu peri1ea by tic reeisieaancss witil
| which. ulldor the laws, states an4 corporations
be wholly sacrificed by tAe failure Of parties to
meet tso,r pavHaenta, tho inability Of tho ho!der
10 compel pn;nlont, mud tho supinenesH and i'll
difference with which tho country regards this
Rtato Of Affairs. =.
"Tllo capital Of Europe l,aa been turnoa to-
| wnrdA ihD Uuitel Etusca in consequence Of the