The Washington union., 1857-09-30
the New York Mirror.
RAILROAD INDEBTEDNESS S-RECUPERATIvE POW
Err OF THE COUNTRY.

RAILROAD NEUTRALITY-SUSPICIOUS. POW
Err OF THE COUNTRY.
Such is the universal anxiety relation to the present
financial difficulties that the public scarcely trouble them
selves about anything else Let follow them to the
top of their bent. The proxmate difficulty, the one
which has beset FIRST and out of which the pressing
necessities for money have arisen appears to be rail
road Indebtedness We find in the State of New York
less than fty-one companies with aggregate cap
tai in round numbers of sixty-eight million four hun
dred and sxty-six thousand dollars The amount Of
bonds issued by these companies about sixty mil
lions and fraction upwards more and the floating debt
is upwards of three million eight hundred and eighty
thousand dollars Altogether these companies owe
their stockholders and other creditors than hun
dred and forty million three hundred and sixtsx thou
sand dollars!
Massachusetts, has -four railway companies great
and small Ohio has forty-one, Indiana fortyone, lll
nos eight. We have reliable accounts of the
capital paid in upon the Illinois railways, the
amount of their bonded floating debt and the Others
not very pressing the market But we have suf
cent data to form an estimate of the general Indebtedness
of the companies existing in the United States,
the material for to-days remarks obtained from official
returns and they stand thus Capital stock paid up
$685. 946 bonds issued S303 1877 973 floating debt
$40 1876 95S estimate of cost when completed 090
3Sl, ia.
This is rather an astounding picture for contemplation
and when consider that most of the bonds and float
ing debt have been put upon this market for negotiation
both at home and abroad is it any wonder there is
pressure for money in New York. that the securities
should jostle each other almost out of existence?
Now the specie in the banks throughout the Union
only amounted in 1856 to sixty millions. The amount
in circulation about hundred and ninety mil
lions The amount of bank notes in circulation
hundred and ninety five millions, than three for
of specie So that all the specie in circulation in the
banks and the bank notes added together will not pay
onehaf of the cost of the construction of the railways
pay what has been advanced by their stockhold
ers and bondholder All these difficulties have come
upon at once and though long expected,
prise at last The managers of railways, believing
that long they could issue bonds they could find
cash. have fairly the money market into the ground
and themselves with it, We consider that the deprecia
ton of this property is equivalent to one-haf or in
other words that five hundred millions of property have
been destroyed by this crisis and many thousands peo
pie ruined who its unfortunate holders Is it any
wonder there is panic pressure when everybody
seeks to realize?
This, however is the dark side of the picture Let
console ourselves with its BETTER though perhaps remote
aspect The money expended far in the construction
of ralwayssay five hundred millionshas, for the
most part, been expended at home, among aborers,
chanics farmers and manufacturers. They have laid it
out in houses lands improvements and large additions
to their domestic comforts that the merchants, in
their turn have gained largely We see it in the
rapid growth and prosperity of Cities towns and
villages and the increased value of agricultural property
We have then, powers of recuperation in greater
strength than ever. Figures will show this concusivey
At the Treasury Department of the United States the
value of the real and personal estate of the people Of the
United States estimated at eleven thousand three hun
dred and seventeen millions of dollars and upwards If
whole railway property was botcd out of existence
it would not be ten per cent of admitted national
wealth and if there is loss of half only it be
but five per cent.
The population of the country is about twentyseven
millions. If the railways were total loss it would be
but twentyeven dollars each every person equal
ly able pay The poor might not be able to do but
the Ator Whitney and other large estates in the coun-
try might easily make up the deficiency.
But further if this loss should take place. according to
our supposition it would through many years, and
not amount to half per cent per annum
the real and personal estate of the country according to
the period considered extension of our liabilities.
But do not consider railway system blown up.
On the contrary it is still the life of the country What
desirable is that the rotten companies should 60 down
at once or fall into other hands, and that the manage
ment should hereafter be intrused to none but thor
oughly competent and scientific men. We are in the
midst of financial Cyclone it is sweeping around the
country those in its wild vortex very likely to go
down those that escape by steering right and dropping
out of its circle may lose of their upper works and
rigging but will yet be able to paddle safely into port
what may
me and the hour the toughest day.
THE RICHMOND CITY BANKs.We take the following
from the Richmond Enquirer of yesterday morning
Some excitement exists in this city with regard to
The of snece hy the Philadelphin