The daily union. [volume] (Washington [D.C.]) 1845-1857, 1855-01-18

SO great the development that $500 900
has been expended mostly the middle and States
less than 900 have been spent in New England In
the last year $500 600 has been spent and the
works progress demand least much more Ii follow
ed inevitably that end this expenditure. 1t
argued sometimes that where this expenditure takes place
within the country it does not affect the markets This
s however mistake The process that OF conversion
Of floating fixed capital where this place
reyuon inevitably results In the present case the large
expenditure Of the railroads carried in connection with
the banks that multiplied fast furnish the small notes
which the workers paid or and with which they bought
the surplus produce OF the farmers The railroad expend
tire in Ohio and Indiana SEQ oo and bank
notes increased Sl oo For these the pro-
duce Of the farmers snd the goods Of the shops obtained
TO aid in the construction OF the roads this demand had
not taken place less goods would have been carried
the State, and produce out in exchange for
which specie would have been received. The drafts
OF the railroads upon the East furnished the exchange
necessary to pay for goods, and there mne
date demand upon the banks for either bills specie
10 remit eastward in for goods consequently
remained in circulation Soon however the enormous
railway expenditure reached its maxmum-t had outrun
the supply Of capital The companies bid higher and higher
for until the usual showed evident signs Of
hxustion and the expenditure began decline followed by
loss of crops in many quarters The drafts Of the railroads
upon the East longer supplied the shopkeeper with bills
produce had been consumed exchange for bank and
the goods laid into stores in Of continued demand
to be paid for. This necessarily the whole
specie exchange To supply this the State stocks that
pledged security sent forward to Ne~ York.
meeting the railroad borrowers in fair competition for
and both there encountered the oonsgnors of foreign goods
who sold for The merchants with goods
falling prices struggled desperately with all those and with
the least The leading railroad failed the banks
extensively pushed into liquidation The consgnors
and importers lost largely but the merchants general
thing have stood their ground because country large
able pay produce maintaining good prices for active
exports Hence commercial debts have been Iquidated
amidst the srictet caution in relation engagements
Manufacturing enterprise of all has depressed and
hands largely discharged Bu the squs seems to have
passed, because credit which produced IT, has been
largely curtaiied in its progress Many Of leading
railroad enterprises approaching completion and get
ting into operation in aid in the increase CT
capital As instance of the 1900 expended
iateriy So 600 has been for the Illinois Central
has got all the funds wants. and cars Ga
lena and Chicago Cairo giving activity the rapid
Element which has been going through that line
of communication. Many other roads have also
operation, ceAsng demand capital multitude Of the
projects which proposed be borrowers viii be abandoned
and capital will its activity and good
deal before the railway mania revives Probably 500
has been sunk within year by the depreciation of such
securities, and that lesson will suffice fer the present.
Ii be observed that bank paper powerful element
in promoting the railway mania Had there been small
notes. the railways could have taken bank pay
out to hands they would have been compelled
in god-a fact which would have placed ihmt to which
they could far lower than it actually reached Had gold
been paid for produce in the several States would have
circulated into the and again found East when
without the convusion which return
Of the paper currency. The universal adoption the
pendenttreasury system would have gone long WAYS
wards preventing eaamitie and present disasters
among the idle poor The capital which great
has been applied to railroads, would have continued
steadily in the support Of manufacturing labor.
Money continues TO increase in abundance and the weekly
return Of the banks shows strong upward movement,
follows;