The miners' express. (Dubuque, Iowa) 1849-1854, 1853-09-28
IT, DUBUQUE IOWA. 49,

1853.
| From the Railroad Joinai
ARE WE BUILDING TOO MANY RAIL
ROADS?
In the las; number Of the Journal, we discuss
cd at some length, the prospective calls of on
railroad companies, and the means of our peo-
pie to meet them. Since then we have ex.
amined this subject somew hat more critically
;. and We find that the projects now before the
public, embracing such of our roads in opera
ton as will require more III ,ney TO complete
their improvements, will, dut ing The present and
coming year, call for iOans fully equal to $.,0a- :
: 100000! This sum is in addition to stock sub
scriptions, though it is intended 10 embrace the
stock subscribed by corporations of various
kinds, which are usually paid for by the sale of
the credits Of such corporations.
Having stated the probable am ,unt of loans
that will be attempted TO be negotiated, the pub
lie must judge to what extent this can be done.
1t will also be well to consider what consequences
will result provided considerable nunber OF
our companies should fail in their attempts to
supply their necessities by borrowing.
We are satisfied that money cannot be had
as fast as called for to carry out all our projects.
With all we are receiving from abroad, our peo.
pie cannot lend $lO0,OOO,0OO year t. our rail-
roads. These are our convicio 1t must be
borne in mind that while our railroads ma.
king such progress, innumerable enterprises of a
different character are brought forward, and
which present equal attractions. and are as
clamorous tor money as are our railroads. Were
the opportunities for investment fewer, or were
capital in this country more concentrated as is
in England, for instance, we might perhaps
carry forward simultaneously all our schemes.
But such not being the case, we must make a
compromise between all the projects presented,
and take such as offer the greatest attractions
| We are satisfied from reasons drawn from ex-
perience in railroad construction, that money is
going to be itght for these projects for some
time TO come. Wherever an uncommon effort
is made, corresponding repose, rest, is de-
manded This is natural law. We have
made an uncommon, tremendous effort, to
build our roads. Every argument and every
appliance has been made use of, to enlist the
sympathies and support Of our people, and to
get their money. Now under all the induce
ments held out, is il reasonable to suppose, that
their money has been expended faster than it
has been replaced by their earnings? In other
words, our people have been inSesting their sur
plus capital, consequently they have it not in
hand for ne0 projects. These future subscribe
tons to the stock and bonds Of new works
must, to considerable extent be made from
accumulations OF ncU earnings, requiring
greater or less time. In the mean time, from
the extent Of our operations, money is going to
be in active demand, and will command hirh
rates. The whole country may derive an useful
lession from the experience of the people of
Massachusetts, in this very matter. The railroad
mania that prevailed in that State few years
since, caused to be invested in its railroads, a
very considerable portion of the monicd capital
of s.uv~ NJ evnIxv Rne 1,H
village in the State, exhausted. All the money
boarded by petty capitalists, by farmers, bv me
chanics, and by professional men, was drawn
from its hiding places by the tempting offers of
railroad companies. While the work Of consi
struction was going on, and the money was be-
'~G. spent, particular Inconvenience was felt
oy the ;umense expenditures. It stimulated
every branch of business, and created an appar-
ent prosperity, which was attributed to the in
Huence of railroads. Soon howeyer, q change
came over this apparently prosperous state ofl
affairs. 1t was found that in the heat Of the
moment, too great a proportion cf the capital ofl
the State had been invested in .ailroads, and
essy and sa lsn ,ne 70 garry
operations of the community Nisaey beeasns.s
in active demand and remained so a nudibeF OFT
years. The ordinary interests Of the Com
munity suffered ia = corresponding degree. The
market value of property deprecated, and a |
general depression affected, unfavorably, the
value Of those investments which caused it,
The only REMEDY for these evils was TO supply
the hiatus created in the capital Of the State by
ne,o earnings, process requiring time, anc
during which, numerous sacrifices were sub
mitted to, and general languor prevailed in
every industrial interest throughout the State. |
In oher words, the people went beyond their
means, and suffered the natural consequences.
Now we admit that the cases cited are not |
parallel in many respects consequently some |
qualification is necessary in reasoning from one !
to the other. Railroads cost more in Massa-
chusetts than in any other State. Numerous
and very expensive computing roads were built. |
The comparatively small saving effected by |
these roads, in transportation and travel, requir-
cd long time for them to return their original
outlay. It ID well known, too, that the New
England roads which depend upon agriculture
for their local business have generally proved
Improbable. The reverse is the case with the |
roads Of the State lying to the south and west. |
agriculture in New England furnishes scarcely |
anything for export; every little community,
consuming all that it raised
The Western roads on the other hand find |
full and profitable employment in carrying to
the consumer, the vast surplus Of the regions
they tras erse and in very short time, reimburse
their first cost. But this fact does not render
means in their construction, or TO incur to some
extent the consequences that follow their over
constructions in New England.
We may not construct those that are NOT
needed and may not be useful, but we may
place an undue proportion Of our means in
them. In such cases 0rer effort must be
followed by a season Of rest in which to recruit
our exhausted strength That our people will
feel the need of this rest, and will take it, we
feel certain. We are equally satisfied that the
calls of our companies In operation will exert
much stronger tendency in postponing the claims
Of new works than at any former period.
1t appears to us that ordinary experience leads
TO such a conclusion Every kind of business
has its periods of progress and re,rocesson, as
regular are the ebb, and flow Of the tide
Our railroads have n long time been moving for
ward upon the food of the tide. We must sooner
or later to see an ebb.
With these views, we do not design to init
mate the idea that our people are not going to
continue the rapid construction Of new works
nor that our roads in operation are not going to
be profitable. When we shall have 10000
miles of railroad, the necessity for the construc.
tion of nc,o works will be strongly felt as at
the present time. We have in fact only COM
menced their construction. We have, too, as
much confidence any reasonable man can
have, in their success. We belieye, too, that
numerous lines, not yet undertaken, would pay,
provided the means for their construction could
be obtained. Were an issue raised upon these
points, we should take the affirmative. 1t is
the probable luck Of capital to meet the demand
that we wish TO insist upon, and to urge upon
companies the necessity Of proceeding with
great caution, and not incur liabilities which
they cannot see their way clear to meet
Webelieve that companies who have had their
work in progress for a considerable length of
| time, TO be in generally sound condition. We
do not anticipate any state Of things that shall
render it difficult for any one in good condition
| at the start, to carry out their plans. The idea
of any general embarrassment is without good
| foundation. Our whole system will continue to
move forward with regularly increased strength
We may in fact be making the most rapid,
when we are making the least apparent, pro-
gress Neither do we regard the present strin-
gency in the money market as an evil. We
| need such, checks to eXcesses to which we