The New York herald., 1874-06-16
Foreign investors in Amsfi-
can Securities.
BUILDING TOO FAST.
Decline in British EXpOrts-The Foreign
Nlarket-Prices Steady.
REPUTATION I'M THE SOUTH
Stocks L0Wer-M0ney Easy-G0ld
Weaker.
WALL STREET,

WALL STREET, /
MONDAY, June I5-6 +. M.
some OF the English journals are exercised upon
the subject OF American railway securities, and
appear anxious 10 point out why they should be
Ignored by the British investor. Various COM
munications have been written on both sides OF
the question, whereupon after calling attention
TO the letters. OF the most distinguished OF he
London newspapers narrows the dlscussi on down
to single point by citing as an illustration the
fate fone OF our great railways s:-"Here," II says,
lis line starting from the commercial capital OF
the United States apd running through the rich
est districts of the whole country. 1t is managed
by directors, all OF acknowledged respectabilitY,
some OF them partners in the most eminent bank.
Ing and mercantile firms OF New York, and the
principal portion of its capital stock il in the hands
Of Foreigners who have trusted to
AMERICAN HONOR.
No element, therefore, IS wanting to constitute
It q perfect gauge whereby to try the claims OF
an American investment TO the confidence OF
European capitalists. II unrivalled route under
management selected from the most capable
men known to the commercial community on this
side, can be OF avail in insuring success, the safety
OF this stock should be beyond doubt. II these ad
vantages go tor nothing, what higher recommen-
dations can 1t be in the power Of United States'
nnanciers to offer? The TACT that the property Is
held bv foreigners should, under the promptings
OF international faith, be an additional security,
and, happily, In other countries examples have
been found where this circumstance has operated
special protection. Why should all such con-
siderations be OF no value In the United States9
When Americans shall have furnished the
categorical explanations mere suggested as re-
quisite, It will be time for them to In
vtre subscriptions for other undertakings,
and TO complain OF any disrrust BY which
they may be met" 1t Is unfortunate for
AMERICAN SECURITIES ABROAD
that some Of them have been subjected to defaults
and that these which are bad, have been accepted
as type OF the good. The cautious English In
vestor, however, may protect himself by following
the example of his American cousin, who, with all
his enterprise in building railroads and watering
their stock ls usually snrewd enough to make
somebody else foot the bill. The present misfor-
tune OF the country, fit be called sucn. Is tnat
We have built 700 fast. Iron fingers have
reached where they could grasp neither popula-
ton nor trade. The latter, 1t s true, are expected
to follow In course OF time, but not now. Bonds
based on land grants and county contributions,
that are worthless without immiRration these,
with the help OF friendly connecting roads and
heavy mortgages, have enabled the projectors aud
constructors OF new lines to measurably finish
their undertakings. Yet what then ? Such
farmers as may have settled on the line nnd them
selves without q market, or the Market perhaps,
1nds itself
WITHOUT FARMERS;
and SO the road wants money. runs in debt, is
forced to contract new obligations loses credit at
home and hunts for help abroad through the adroit
nanipuatlons and prospectuses OF its paid agents.
II Is in this way that the business of railroad build
Ing has been overdone, monopolies have been
fNpo
lection, and at last the bubble has burst. 1t is
hard to believe however, that under judicious
management every dollar invested in these new
railroads will not eventually "pay." The country
10 developing rapidly. immigration Is yearly CIV
ing life to dead stock. We are growing up TO the
ability to bear more easily this great transporta
tion burden, and perhaps another generation of
incomers will find that what we OF the present
seem to have unwisely done will prove for them
national blessing. While the European Investor,
therefore. may take gloomy outlook now, he has
only to wait and watch, and transmit to his heirs
the contents of his strong boxes that are repre-
sented by non-dividend paying American secur.
tiles.
REPUTATION IN THE SOUTH.
Under the plea OF funding their Indebtedness
there can be little doubt that some OF the South.
ern States are openly contemplating reputation.
Louisiana is proposing under the authority OF an
lct or the Legislature, to repudae forty per cent
Or the amount of her acknowledged debt by issu.
ing in exchange for outstanding bonds new forty.
rear bonds to the amount OF sixty per cent of
the face value OF the existing issues, while
South Carolina was but recently represented
by q committee In New York, who. behalf
Of the state, proposed that the government shall
ignore S6,oO0,ooo of bonds, because tney were not
Issued, as provided by law to take up other bonds;
and that the remaining $40 COO 900 oil the debt shall
be converted into new consolidated bonds at fifty
cents on the dollar. AS the State Is becoming
sadly disorganizcd and impoverished under corrupt
political rule, 1t is not improbable that these
strange proposals may be accepted by many bond
holders, for the creditors OF the State seem to
think that the less the government undertakes to
pay the better may be their chances OF getting
something. Alabama appears to be making no
special effort to enforce the collection OF taxes to
pay the January interest upon ner debt On the
other nand there is considered to be little doubt
:hat Virginia will be able to pay her January in
seres on or before the 1st Of july and that II her
new Tax bill can be enforced, the provision for her
nture interest payments will be ample. There
were no transactions to-day in southern bonds.
DECLINE IN BRITISH EXPORTS.
Subioined is statemen: OF the total value Of the
exports OF British and Irish produce and manufac-
lures from the United Kingdom to each OF Its colo
nies ana dependencies ana to each foreign cOun-
try in the three months ended April 30 1874 as
compared with the corresponding period OF lS73
The total to the colonies and dependencies
amounts to l4s60 c2s, against fl3 s57 in ls7s
showing an increase of l3 per cent; to foreign
countries the total is f42,94l,s56 against
f49 224, SOC, showing a decrease of l23i per cent
The grand total of export trade thus exhibits a
decrease from so2, 366 to f5 so2oS4, or IA per
cent ana the entire statement confirms the view
that all the depression recently experienced In
trade and finance has been from sympathy with
the Continental panic when commenced in Austria
last spring, and the American panic, which COM
menced IN september. The increase in shipments to
British Possessions Is principally 10 India, Aus
ralia, Hong Kong and the Straits settlements,