The New Orleans bulletin. [volume] (New Orleans [La.]) 1874-1876, 1875-04-03
BANKRUPT NATIONS.

II there is any such thing IS "debto1
class" about which we have heard so mucf
| Of late wears, it must consist mainly of baak
rupt governments and bankrupt railroads. A
member Of the British Parliament declared
short time since that the amount due 0y oans
rupt governments is not less than 81, 2oU ''Oo
600 1t is also calculated that there are 5000,
900, 900 Of railroad bonds in this country
which have suspended the payment OF interest
either for the time being or altogether. Tue
| bankrupt railroads OF other countries lnc!nd
! iny the South American Sta'es probably owe
| $500, nO0 600 more. So in round numbers. as
| the Nuiion eft ma.es, the bankrupt govern
men.s and railroads together owe as much Us
| the eutire amount of our national debt.
| The greater part of this enormous debt whl"h
vii! not be paid is teld in England and Hoi-
| land: more OF it in the former thrl in the
latter country. The practice OF Republication
| has become so general of late that the capital
,sts Of England have org inized Corpora
ton OF Foreign B,ndhoiders, with an Exec'l-
tive Council and subcommittee intru ;ted
| with investigations. SO far as the bankrupt
railroads and repudated State debts OF the
past are concerned. the most that this coua-
ell can accomplish is exposure, but their ser
vices in the future may be of great value and
save British capitalists millions Of pounds.
Among the doubtful government credits, a
late report puts Spain 10 somewhat more
hopeful condition, and Portugal as acting
fairly. But Italy is matter of constant
solicitude" to the Council because it has taxed
foreign holders OF its rentes, and they do not
hesitate to call the tinanciers OF Greece sun
mitigsted knaves." OF Turkey and TuniS
they speak hopefully. Liberia seems to be
hopelessiy in default. Most of the South
American States are in bad way. San Do
mingo is utterly constituencies. Mexico was
brought up standing by notification that no
more loans of hers would be admitted to
European markets.
Guatemala is exceptionally honest; Hon
dur4s hopeless; Nicaragua wants to compro-
mise; Costa Rica is coquetting; the United
states Of Colombia are trying u ray their
debts; Ecuador is in disgrace; Bolivia under
a cloud; Paraguay aud Peru improving q
little and Uruguay struggling noby. While
the credit of the United States is spoken OF
in the highest terms, the Southern States are
strongly ,,-p.cted. 1t says that the Legisl.-
lures have manifested but little disposition to
settle with their public creditors, and do little
beyond appointing commissioners to nego-
tiate apparently with the view 70 IL
definite lostponement, and at me
same time "much disappointment is
expressed, because the agsrseved credl-
tors refuse to cooperate in schemes for
selling lands. opening mines and snel1ng-
works, and forming ra.lro ads" but the Coun-
Gil says that their experience in the cases OF
Mexico aud Venezuela has shown that "the
extension of public works does not produce
any corresponding desire to discharge the
pnblic credit" The danger IS that the credi.
Ct these States will grow worse before 1t be-
comes better.
The Nation gives some good advice relative
to the American bonds which have been
placed on fer -ign markets and have proved to
be worthless. II says:
s'But We ought to say to the London bond
holders that no great improvement III the
pecuniary morals OF small or poor States can
be looked for so long as lenders in the great
money markets are as credulous and as eager
for high rates Of Interest as some OF the loans
contracted every year in London show English
men to DO. A very large number certainly OF
the loans raised there by Americans could not
be raised in this country, were capital never
so plentiful, aud some of the accompanying
Inducements offered are such as to sugg,s.
one would thick, to every rational man, that
if the undertaking were sound it would never
have been allowed to leave New York or Bos-
ton. 1t the stories of the projectors were
Trustworthy, and the fortunes they offered
were reasonably certain, people mere would
sell everything else il order TO supply them
with funds. 4 great deal OF orr private
morality in business is maintained by the diff
Guilty Of getting money.
..If the banks were to lend lavishly to all
corners, the result. as long as the funds lasted.
would be demoralizing to the last degree;
and as long as governments can get monsy In
London aud Amsterdam for the asking, so
lonp will bOndholders have to fill the earth
with their annual vail. The political
character Of a community. on which its credit
has to rest, must, in the democratic times, be
looked for in the ability OF the government
to maintain order, in the recognition in leg's-
lation of the commercial hocor, and, though
last, not least, in the disposition of the masses
to commit the administration OF their ah..ir.
to leading men.
The Coun.i of the Incorporation OF For.
eign B,ndhoders" may, if their affairs are
properly IN .nsged, do a good deal toward,
suppressing reputation, deceptions and
frauds. Chicago Tribune, 80.