The daily union. [volume] (Washington [D.C.]) 1845-1857, 1851-02-27
II Commercial Correspondent


NEw YoKK, February %, ls5l--l. p. m.
The railroad speculation which few years since
such extraordinary height in England and which perva
ded all classes. absorbing dollar OF capital until
the surplus funds Of the nation all loo ked
has fairly commenced here In almost every State OF
the union-more particularly Georgia. Virginia. Missouri,
Illinois, Indiana Michigan, Ohio, and nsyvanian
those States works in progress which DO
finished for Sl0o. 900 Illinois alone will require
$4,000 900 for prises, and she will get It, The
bonds OF the other western railroads pressing upon
this lots Of millions Of dollars, in quick
sion. fast those which precede Them disposed Of
An amount of new railroad bonds, equal at least to
500, OO0 including issue OF X3 900 OF the
Erie railroad, is prepared in lots, waiting their turn
to be presented the market The press everywhere Is
sounding tho praises OF these new enterprises and the
abundance pness of capital with the known
cess which has hitherto attended maj ,d'y of these works,
added the immense collateral benefits they confer
all parties, conspe TO fan the growing excitement and
It has become pretty certain that after pause oil some
twelve years renewed speculation will be directed rail
road companies For the Of twelve the
ha, been very productive and economical, causing
considerable accumulation of capital until in the last
three years its value has been sensby diminished
This great accumulation is to DO applied 10 the
s!ructlon of rairoads-those iron which lock to-
gether States in closer and ndssolube union opening
resources and making them accessible to market Follow
ing the inevitable law Of such excite eng agoments
greater than the surplus capital of tho ,untry
can readily meet will be entered into, and Revision
and distress succeed Tor time The expenditure viii,
however, diue great activity local business The de-
and for labor, for ron and tor all materials OF consuo
ton, and paid for with funds drawn from the Atlantic
States add greatly the welfare OF southern aud
western localities In former whsn some 900
sent from to west Tor Invest in banks
cotton lands mostly there remained nothing to show Tor
the money when credit broke down and bankruptcy
ceeded The money had been loaned TO specuato, dis
spated and squandefed, without the production any
equivalent A similar amount will probably be
pended upon railroads in the different States before
sion shall have succeeded. There vii. remain, how.
useless patches oil agaded works spread
an immense surface OF country the before,
when State credit was the OF construction but
road, under the judicous action OF its board of direct
ors, will remain useful and valuable work The only
question which will arise Is whether the business which
that road will created will be sufficient pay
terest its cost. The too rapid null plcaon OF these
works will prevent such income by
and the in England, oil adequate revenue
will depeca,e stocks and DO ads, aud involve holders
immense losses
In such state of affairs, it beco to look
forward TO such inevitable results and, by timely ega
lion, prevent, much possible, the which
naturally take place For th, they have the example OF
England before their The rapid multi pication
Of railroads the increase of business, and receipts
fell too low permit dividends The government them by
large reductions in taxes, stimulated internal nes
the roads Tested the beneficial influence by increasing
and improving values in their securities in spite
the famine la the United States the the foreign
trade has direct and great effect upon the welfare the
internal public works. construct table OF the
| of certain leading works for the last years,