Des Moines courier. ([Ottumwa] Iowa) 1848-1854, 1853-07-14
From the American r. r. Journal.
Are we ExpemslinE too mach
Money iA kSailrO;sSls.


which is often answered in the affirm,
tive by The ,imid and conservative, aud
by those who know nothing of the sub.
Ject OF the construction of railroads, nol
their uses. To person residing in Ne "
York. for instance. the west. which il a,
present the great shesire Of railroad con
construction. IS q mere point in space. -
Tie sees statements OF the grea, nun.
Der OF miles of railroad in progress in
that section. but he cannot be made TO
realize Its vast arena. nnr the great dis
lance by which NEE, of the lines, both
in operation and in progress. are sepera.
ted from each other. The amount re.
quired to be drawn from the active capi.
tai of the country. TO construct our roads
in progress, 10 much over estimated,
while at the same time the influence they
exert IN the creation of wealth is almost
entirely overlooked.
We have in this country got through
with our most expensive roads. Taking
ouI ,he Baltimore Il Ohio aud the Penn.
syivanla railroads. aud the cos, of our
railroads in progress will no, exceed
$4,000 per mile. OF this sum, the
amount blrrowej will average, saw. 81, ;.
90 per mile. leaving SI3.OCU per mile to
De provided BY those Immediately inter.
es'ed in their Construction. The amour,
to be borrowed becomes a direc, charge
upon the capital of the country. Not so
with what is furnished by the stockh hold
ers. In the west, particularly, the stock.
holders in the road contrive 10 work into
their construction very large amoun,
OF The products of their farms. which
never being turned in,o money. il, loss
would effect business very slightly.
There 10 no wessern farmer living with.
IN ten miles Of a rzilsoad. and owning
200 acres of land, who could not wei
afford TO give outright $500 or 5. 1000 To
railroad. and YET be all the better of,
provided by doing 90 he could secure its
The demand upon the
active capital Of the country m c4rry on
our projects is very slight. when the ex.
tent OF the line 10 taken into considera-
ton.
The small sum required to. construc,
southern or western railroads is replaced
IN a year or two. by the anoun, saved
over The old mode of Iransportation.--
As soon as this is done, the road has ceas-
ed To be burden upon the monetary in
'eresis of the country. though the debts
contracted for its construction may still
remain. The amount required for our
railroads in progress is NO, aIarminyly
large, nor probably equal to our annu..
accumulation of capital. As already STA
led, most of our roads replace their cos.
IN very shor, time. SO ,ha, their earn
nss to an equal exten, brcome 50 much
addition 10 the annual income of she
country.
The railroad investments we are max
ing a, the present time have no tendency
To bring asout financial crisis, feared
by SO many; ON the contrary. they con-
ssisate "ur greatest ,afegaa rds agains. ex.
cessive initiation of prices. and a conse-
quen, commercial revolution. No .ecu.
rity can be safer ,han that ted by
lein upon a railroad for loan. say seven
thousand dollars to the mile. In no
manner can an equal amoun, of money
oe SO safely placed, or where it W III yield
an equal return. Seven thousand dol
lars per mile will not more III n cover
The rails and equipment. So that the
lender possesses an available security 10
the amount OF his loan. The eastern
roads on he contrary, have been com
Peilec 10 borrow large sums Of money
ios the purpose Of preparing The track
for The rails. The c0st Of the iron and
for the Erie aud Hudson Riv.
er Roads did not exceed $40 900. L,
has cost tho former over $4,000, aud
the latter over 100000 per mile To pre-.
pare their tracks for the iron. On the
score Of costs. therefore. the western
roads have an immense advantage over
those tha, have been constructed in the
eastern States. Aud although the latter
may for the present have larger amount
of business, il 10 by no means in pro-
portion TO the respective cos, Of the two.
On The contrary we have every reason
to believe that the average receipts Of the
western roads viii! in few years equal
those of The east. As investments. there
fore, the former must be vastly more pro.
duenve. although il is probable ,hs, the
rates OF transportation will be much low.
or on wes'ern than On eastern rnads.
Another thin. in favor Of western roads,
Il the isct that tncir lines are inose widely
separated; they are nnt. and viii not for
years be rivals for th. same business. Mas
sachusetis has now abous one mile OF rail
road To every SIX miles of territory. The
same Istio applied TO Ohio. wo lid give
that State over 6JJO miles vi railroad. or
more than onehalt OF the whole NUMBER Of
miles la The United States. There are in
proorcss amt III opera,loa in Ohio about
LJou mics.
The cost Of these roads will not much. if
any rxcecd SlU. .0JU,UOO. The 1850 miles
oi ,ailroad IN Massachusetts, have cost about
ooo'uoO.uuO. There can be no doubt that
,ic aesrcsate receipts of ,h. forin.r will
VAST, exceed those Of the latter, allow,n.
Inc chsrses 10 be the sam. upon the roads
ot both States. The nlvestm .n,s in the
ONO rosds would pfoJaolv yield double the
iheonle VI those ot Massachusetts,.
;. u SHOULD a,so b. bonle la ln,.,l, that ths
liabilities oi our new projects have iEum ten
W shifty veurs 10 run Ucture arsiviuy al ma