The daily union. [volume] (Washington [D.C.]) 1845-1857, 1849-10-18
To the Editors.
BosfoN, October Is, 1919.

has II is believed, in OF his late numbers taken toe
limited and somewhat erroneous view OF the railroad inter
in New York. he remarks that 'this does not however
dispose capitalists to encourage the New England rail.
road borrowers who are getting rather numerous is
undoubtedly the that those companies have rather
overone the thing in the Boston market and have alb
sorbed much OF the current accumuatons as to keep
money scarce for commercial and productive purposes
This has begun to enlist those interests against them,
while the facts connected with the projection and construc-
ton OF many, il not most OF the roads, such as to
shake public confidence to serious extent All the
roads necessary 10 the present prosperity of New England
have been built and the general welfare now demands
that appropriations for those purposes should cease" &C.
Capitalists, as such, encourage" nobody Their in.
vesments are always made with eye TO security and
profit; and the security weakened practically the
same thing where confidence is mpairedthe prospect of
profit must be increased TO encourage them TO invest
They do, however invest in these railroad securities both
in New York and Boston, not only in the railroad sc.
curities Of New England but of New York, Pennsyl-
vania. Ohio Indiana, Michigan, &C. All the vast sums
which have been expended railroads have already
been raised in form other, for longer shorter
periods and on different conditions and rates OF interest,"
depending upon the competition in the money market,
and the different degrees Of confidence inspired in the
but short June since thai railroad stocks %eSs deemed
the most safe and profitable kinds Of securities The
capitals OF railroads, being mainly in fixed properly,
cannot, like those of banks, be readily puroin-
ed; their business being usually for cash in hand,
generally paid in advance, there is little risk of loss by
bad debts These with other considerations drew in
veslments from bank stocks to railroad stocks, depress
ing the market price of the former and creating in the
banks feeling OF rivalry II not OF hostility to the rail-
roads. The manufacturing interest," too always large
borrowers, into collision with the railroads when
the latter became borrowing competitors The present
sourcesthe rivalry OF the banking and manufacturing
interests competitors with them in the money market
The banks taking advantage Of this competition among
borrowers have greatly raised their dividends, and
times by that would but poorly bear the scrutiny
OF the usury laws and have thus encouraged" capital
lists. who look at the result and not the path by which il
lsr hal ,nvo rtfh thorn
Your New York correspondent speaks OF railroads. i'm.
pliedly, nproductve Investments; yet there are
few, II any, railroads IN New England that do not
fair dividend on the amount actually expended in their
construction. Where the roads have been begun with
inadequate capital, and the required to complete
them have been raised on stock al SO per cent discount
and on bonds at half that sacrifice dividends the
na lace of such stock are not 10 be expected, and of
course the interest OF the original subscribers is sacri
fced But all this composition in the money market, all
this conflict OF interests between the original and subse
quent shareholders bondhoders, are only surface agi
ations-mere bubbles the top OF the waterand do moi
Affect the large masses whose vast interests in these i'm
provements lay much deeper Railroads the great
saving machines Of the age their discovery
proydentay made for the especial benefit Of extend
ed Union and estimating their utility, we are not TO look
merely 10 the money dividends earned their stock but
the collateral benefits arising from their construction
also To be included The enhanced value given to real
tate along the lines and the examinations OF the New
England railroads. is equal, at moderate estimate, al
thrice their whole cost The OF landed property within
miles OF this city, where the short trains run for the
commodaton OF local travel will average since the roads
were projected, thousand per cent and in particu
lar places il will equal ten tunes this amount But LET
look still deeper Has any branch OF industry anguished
in consequences OF the laborers being taken from it and
employed IN the construction OF these useful labor
and time saving machnesl The markets oversock.
ed with agricultural products OF all kinds manufactures
glu the great commercial cities; the mechanic arts, CON-
merce, navigation, the fisheries the learned professions
are all fully supplied with hands and In giving employ
ment TO the aborers railroads, class rescued
from comparative deness, taken from less profitable
Cd H..
have produced such withdrawing. such magic results
as the construction IN this country OF railroads So far
from ceasing TO build more, the business may be consid
cred, even in New England, yet but in its incipen
state, and hardly commenced in large sections OF the
Union possessing vast and varied resources
It's about twenty years since the first railroads were
commenced IN this country, and but about twenty i've
years since the opening Of the FIRST railroad in the world
run with locomotive power-the Stockton and Darlington
railroad in England. There are now in operation
nearly completed In this country thousand
miles Of railroads. Estimating their average cost ncu
ding all their expenditures construction and equipment,
at thirty thousand dollars per mle II will be that in
the last twenty years than two hundred millions OF
dollars have been expended on these works No other
outlay OF equal amount any other branch OF business,
equal amount OF labor any other field of industry,
country, in saving time and labor and in adding the
substantial wealth OF the nation, as this railroads
Twenty. years ago the population Of the Union was
about Twelve mllons il may be estimated At about
twenty-five millions; and twenty years hence il will
probably reach forty millions, fortyhve, IL the north
ern British provinces in the mean time accree to the
Union 1t is moderate calculation, then, to suppose
that the people OF the Union will expend on railroads
during the next twenty years twice AZ much az in the
last, OF four hundred millions OF dollars and many per-
sons OF Judgment think il likely that twice this
Wherever these improvements have been made in this
country. their beneficial effect has been wonderful Bar
wastes have become cultivated fields obscure
have become hourshing cities, and dormant resources,