The daily union. [volume] (Washington [D.C.]) 1845-1857, 1854-11-29
RAILROADING AND THE IRON BUSINESS.


RAILROADING AND THE IRON BUSINESS.
The failure in of northern cities of two
firms very extensively engaged in the iron business took
the commercial community by surprise which greatly
heightened from the subsequent disclosure that the time
of their stoppage they realizing profit of 100000
month from the manufacture of iron alone While many
branches Of industry have suffered and still suffering
from that feeling Of ds;rust and apprehension which
tight and tightening money market almost certain to
engender universally conceded that the iron business
in healthy and prosperous condition
The demand still continues enormous beyond precedent
prices rule high to make foreign competition matter
of secondary considerations and although within years
millions have been invested in the enlargement of old
works in the construction of Ones the consumption
than keeps pace with the increased facilities of
ufaeture Under such combination of circumstances
when the manufacturer is unable fully to the de-
mands of his customers and when the prices obtained pro-
duce very large profits it is matter of curious inquiry
to ascertain how embarrassment and stoppnge could SUBJ
sequenhy follow. This seeming anomaly, think, is
susceptible of eaSy explanation.
1t would if the mpusye energetic, and enter
prsing spirit Of people must find vent n way
and hence those periodical speculative mania
Sometimes the disease assumes botanical hue and
whole nation become culivators Of the morris muticaa
Sometimes becomes aspiring its type and the ambi
ton is universal to found towns and cities and seed time
and harvest neglected in order that the granyeldng
fields may be cut up into imaginary squares lots Streets
and public parks The last form Of the disease has deve
oped itself in universal unthnking uncacuating desire
to build railroads In many instances roads have
been projected and partly constructed without refer
to the wants of the country through which they
traverse without satisfactory credit and without sufficient
present prospective While the States of New
York Pennsylvania and Maryland have in debt very
little short Of ssyenty6ve millions beyond the capital
stock for their present productive railroads. scheme
of ralroading has been projected aud partly executed
confined to one State ocality-whch has drained
the Atlantic cities of their surplus capital and which has
flooded their markets with bonds and stocks of exceed
ngly doubtful character We do not say that the
securities of all railroads should be placed the same
questionable footing; for very many of them offer not
merely tempting, but perfectly Safe inducements for invest
ment But there are also very many of them built with
out money aGd at extravagant nominal cost because
based upon the WORTHLESS bonds issues Of irresponsible
private parties corporate bodies. We mention
more than town in the United States which has
issued bonds aid in the construction of railroads to
greater than the real estate of the said would
sell for With these bonds and others Of a similar nrn-
sic value created and issued by special authorization of
State legislatures have many of railroads been
constructed They &c into the hands of and
iron-masters who find resdy market for Them at
slight discount when times are good, Conscience unm
paired and money plenty The money obtained for these
evidences OF debt passes into the hands of oil classes
ana 10 difused vast surface Of terrific
ry but it should also be borne IN mind that is
the three cities of the Union where the capital
of the country centres and where it is required to adjust
balances and the demands of trade and CONNER
Without correct data at hand still have hesitation
asserting halef that within the last eight years
the demand the eastern cities for railroad purposes has
averaged from fire hundred thousand million Of dollars
pesk and, Notwithstanding the present pressure in The
money market of money have still to be
raised many roads in the of construction
links aud utterly raueess until the contcmpla-
ed connexon is made
The parties who have agreed to furnish iron 70 rail-
Dad companies have contracts covering period of one
years In instances they to receive the
'onds of these companies IN payment When the agree
first entered into the currency of the country
vas somewhat inflated and the prices of labor Of real e
ate aud of stocks ruled high Since that time and with
comparatively recent period, serious change has tn
EN- place While the wages of labor and the prices for
he necessaries of life show fai@g off, nearly all descrp
ions of real and personal property have beal affected in
aue by the great scarcity of moneyor rather the gre
ack of confidence The bonds of completed partially
completed railroads which short time since brought
their face in the market only be negotiated at
nnous rates of discount and in many instances cannot
e negotiated at any price In the of the firms men
toned at the commercsment of this article will be found
confidently believe investigation that the of
heir suspension was entirely owing to the great depre :
aon in the value of the securities which they received ans
cid as the equivalent of cash. c