The New York herald., 1874-08-12

by Law is wholly issued the railroad either at once
ceases to pay interest or the amount necessary
or an instalment of interest II borrowed, and
soon large noating debt is created. The bond
holder is then asked to contribute TO pay
on the noaung debt. Possession OF the road
is never offered to the mortgage bondholders, but
they are left to contend against the parties whom
they have assisted, when they could find no aid In
the United States.
It IL great mistake to suppose that the capital
lists and wealthy bankers of Europe are the sole
holders or the holders Of the greatest portion Of
United states government or railroad bonds They
are held, to great extent, by parties whose sole
dependence is the income therefrom. They are to
be found In the smallest amounts, in the hands Of
the trader and mechanic and all classes. At the
present time Qs73) 80 many railroads have failed
to pay their interest that the road that pays is the
exception. Now the German dlstrusts ALI 1t Is
useless to say or to demonstrate that this road
cannot fail to pay its interest They are all alike
condemned. The failure Of the States OF Georgia
and Alabama to meet their liabilities principals
or as guarantors has been almost fatal to State
credit. The German cannot see how q State OF
the wealth of those States, and with powers Of
taxation, can fail to pay its liabilities. The Ger
mans now begin to believe that they have been
deceived and defrauded They said that parties in
terested to sell and introduce their bonds into the
markets OF Europe exhibit now no care or regard
Tor them, but on the other hand throw obstacles
In the way OF their enforcing their liens. They
also find that sovereign States deny and disregard
their guarantees; that from the distance they
seem Indifferent to them, and almost seem dis
posed to forget their liabilities to wholly avoid
their payment The embarrassment OF railroads
that are now unfinished seems to be without rem
edy unless with much loss to some parties. 1t s
to make them profitable, only require the business
that time will bring to them.
The honor as well as the credit OF our country
has been perilled Dy the recklessness with which,
under the laws, States and corpora have been
allowed to issue bonds. 1t Is now to be wholly
sacrinced by the failures OF parties to meet their
payments, The inability Of the holder to compel
payment and the supineness and indifference
with which the country regards this state OF mat
ters.
The capital Of Europe has been turned toward
the United States on account OF the prospects and
hope Of higher interest. Now the interest offered
by European enterprises ls equal to the usual
rates Of interest in the United states. Hereafter
this capital will ind abundant use in its own
country. As proof OF this 1t may be stated that
In 1872 shares and bonds of different governments
and new enterprises were offered in The market OF
Frankfort to the amount Of nearly g. 0oO 0oO 900.
1t is to be hoped that under proper management
defsulting estates and corporations will
yet be able to do justice not only
to their creditors at home but also
to their equally deserving creditors abroad.
Action Under . Joint Resolution of Con.
gress Ordering the Presentation OF
Medals to Certain Parties-Designs
Invited.
The Director Of the Mint, acting under instruc.
tfn, Fvou tho oF
the attention OF artists to JOINT resolution OF
Congress ordering medals to be prepared and
presented to Captain Jared A. Crandal, Albert
Crandan, Daniel F. Larkin, Frank Larkin, Byron
Green, John d. Harvey, CORTLAND Smith, Eugene
Nash, Edwin Nash and William Nash, OF the
town OF westerly, r l., who SO gallantly
volunteered to man o nfeh0at and q fish
boat and saved the lives OF thirty-two persons
from the wreck of the steamer Meris on the
waters Of Long Island Sound, on the s1st OF
August 1871; also to section OF the act of June
20, 1874, directing medals or honor to be desig-
mated "Life Saving Medals" Designs for the
medals are invited and viii be received up to the
30th Of September next. TWO hundred and nifty
dollars will be paid for the design which may
be selected and adopted for the Metis medal,
and the same will be pad for the design which
may be adopted for the life saving medal. Ii is
proposed that the Metis medal shall be two and q
half inches In diameter and the life saving medal
one and seven-eiehths of an inch in diameter.
Reported Ku Klux Outrages In Texas.
Reports have been sent to the Bureau of Justice
from Seguin, Texas containing accounts OF aggra-
waited Ku Klux crimes In that vicinity. Two par
ties were captured In the dead OF night by masked
nen and severely maltreated, one of them being
forced to submit to 100 lashes with black snake
whip, while an attempt was made to hang the
other; but the cries Of the intended victims
brought assistance, and the masked ru1lans gave
up their designs Two or three families have
been compelled to leave the vicinity.