The star of the north. [volume] (Bloomsburg, Pa.) 1849-1866, 1857-10-28

tnaH NS uue. n phutC 10 hot iuS'C'y oPo-
ces of commercial pathology; il is an act of
intention, strength and skill, with authors,
moiives, victims, and all The rest that consli-
tutes action. Let us see, then, how panic
at New York operates upon American rail-
ways and their numerous British share.hold-
ers.
Let US suppose tho British 'capilalist,"-
generally man who has earned his money
slowly, and his experience still more slowly
alive to few Of the perils that environ
American speculation. Let him be fairly up
10 pretended State guarantee, or an infor-
NAL State guarantee with flaw in il; 10 the
danger of rival lines, aud of lines made SIM
ply 10 assist in the making Of lines, which
will ruin them when made; 10 the dangers
of management, of analgamatious, of leases
and sales, which may or may not leave the
general shareholder in an unpleasant condi.
ton. Let the Englishman either devole the
autumn of his days and the Pickering light
o! his declining income 10 gaining an insight
into these curiosities Of American enterprise,
or let him have the sense 10 consult bro.
ker, who can point out these dangerous
places on that smooth, seductive surface
Still there remains one peril which hitherto
has not been so fully illustrated, and which
many of our readers must be learning 10
their cost. Railways in the United States,
and few other undertakings, appear 10
have an unlimited power of borrowing IN
market Of which the ups and downs are
wholly beyond all English ideas. All the
great lines have been borrowing in the New
York market on their own acceptance, and
have done SO easily, as they have generally
been willing 10 pay the highest rates of inter.
esl. Our own companies have done pretty
much the same, to their cost, but the highest
rate Of interest here is not nearly SO high as
there, and we have not seen great company
going about from mouse to house begging for
an immediate loan to pay the interest due on
lis bonds, aud Lombard Stree, crowded with
spectators whose lives depended on the re-
suit. On the Ist day Of this month Wall ST.,
New York, was in state of delightful ex.
element. "The September coupons on the
Erie second and third mortgage bonds ma
iured, and The company were without means
10 meet them. unless the Banks would ad-
vance $6O0,O00. 1t was not ill midday that
the Banks agreed TO do it." Had they de-
cined il appears the little confidence left at
sEG" TOrI -----iI s-.--~--i--- ----I
it is evident that humanity and patriotism
were allowed 10 sway The decslon. But for
this appeal, and but for some tender ele-
mems in The philosophy Of Wall Street, what
would have become of lhe Erie shareholders,
when the second and third mortgages would
have 10 go without their interest? The re-
suit was, the "second and third mortgages"
got their September coupons. But now
about the shareholders Those Of our road
ers who may harden 10 have embarked
their all in this company will be interested
10 hear that it has been al it's wits ends to
pay hundred thousand pounds, and that il
had 10 borrow for The purpose on day when
"he best commercial paper could moi be
done below l2 and Is per cent. and by far
the largest business was at per cent. a
month";" But these panics are periodical,
and al no such great intervals. There is moi
a railway in The States that has not 10 go
through few of them. But whee railway
can borrow as much as it pleases On its own
acceplances, and when the rate OF interest
for loans is al The usurious rate stated above,
/ it results that the inevitable operation Of a
United States railway Is 10 draw the money
out of the pockets of the stockholders into
tina, of The Wall street money lenders. No
railway, certainly not any American railway,
can ever yield profit 10 cover such interest
and. as the interes, mus. be paid, The profit
must disappear.
In fact, the best comment on this sorl of
transaction is the value of the shares in The
market. What is shafe worth when It be-
comes merely all authority 10 haf.a-dozen
gentlemen TO contract any debts they please,
at any rate OF interest they may find neces-
sary? Railway stock which was supposed
TO have fallen quite low enough, had gone
down ten or twenty per cent. lower al the
last date, and was still going down. The
truth is, American railways have been burn.
ing on both ends, both on their income and
on their outsoings. The crops have not
been quite so good; travelling, therefore, not
quite SO brisk; while railways have had to
borrow money against host of needy com.
petItors. There is crowd of spectators in
sugar, cotton, and in corn; there are States
with debts rather above their present means,
and wanting more money still; and there are
banking companies with means that would
not bring them much credit in this country,
but which have won American confidence.
Al the beginning of the month there was a
crash Of them, end as one reads the list ane
seems 10 be reading page Of some CONNER
cial romance, and not maller.ot-lact re-
port. What would Englisbnen, simple as
they are, have expected from the "New
York Life and Trust Companyw What pru-
dence, or even honesty, was likely 10 be
found in projectors capable Of such jumble
of words. Yet this Company had thriVen
at Cincinnati, till in an evil hour it winged
its flight 10 New York, and became ma
chine for drawing the money OF the western