Democratic Sentinel, Volume 2, Number 44, Rensselaer, Jasper County, 13 December 1878 — Bankrupt Nations. [ARTICLE]

Bankrupt Nations.

The discredit in which of late years foreign loans have been held in England had the effect of making investors place their capital in bank, gas, water, insurance and railway stocks. Foreign investments were thrown overboard and home securities were purchased. The consequence was that competition ran up the prices of all such English home securities. A reaction was sure to come, and seems to be setting in to-day in England with some severity. The disaster of the City of Glasgow Bank, with its unlimited-liability clause, has caused a heavy decline in all bank shares. As it is possible that the British public may again return to foreign investments, the English Stock Exchange Commission has published some of the facts in regard to these outside loans which are quite interesting. Should there be a return of peace on the continent, Bussia, Austria and Turkey, it is quite certain, will be extensive borrowers. The total amount of money raised in London for foreign states during the last half-century has • been something like £614,000,000. Of this £167,000,000, or 26 per cent., is in entire default. The bankrupt states are Turkey, Peru, Mexico, Venezuela, Honduras, Costa Rica, Paraguay, the Confederate States, Uruguay, Greece, Bolivia, Ecuador, San Domingo, Guatemala, Poyais and Liberia. The loans in partial default amount to £175,000,000, or 30 per cent. Spain owes £100,000,000. That country has so lost credit that the chances of her paying her loan are on about a par with Turkey. The Egyptian loan is in better repute just now, and it is believed that the Khedive will keep his engagements. The loans, then, in entire or partial default amount to £332,000,000, or 54 per cent, of the total raised. —New York Times.