The weekly pioneer and Democrat. [volume] (Saint Paul, Minn. Territory) 1855-1865, 1858-04-01

THIRD ARTICLE.

ist ih"' nu Dtutt nuS ever luSt uOiMr
by reason Of leaning its credit to Railroad
Companies and.
ID That the pending loan bill requires ny
Mll securities as any like bill heretofore pass
I'd in any State of the Union.
Ii these statements were true, they would
furnish solid argument in favor OF the g..
100000 bill but, as | will undertake 70
show they ar not true.
Prior TO the framing of the new constitu.
ton of New York in 1876. that State had
lost by loans 10 railroad comparic les then in
solvent, in principal and interest. the sum Of
S6,44s,S05 81.
As in our case, when n. Y. loaned her
credit TO railroads, the advocates of the loan
maintained that il was no, debt The
result of this first experiment he'd 10 the in.
sertion OF that clause In the constitution Of
N. Y. which prohibits the loan OF the credit
81 tho ss'Satc To corporations.
Indiana, am now giving only my conf.
dent recollection of this fact ~ wei M of that
relating 20 Ohio), either loaned her credit
or took stock in the Madison railroad com.
pany, and think others and lest most of
the amount, and soon abandoned the policy
Ohio commenced her railroad system with
the aid OF State subscriptions which was
soon discovered to be u policy that would
ruin the State, and was therefore early con
demncd and abandoned. The amounts thus
lost by loans of credit and taking stock in
railroads, became state debts, the interest If
which required an annual tax upon the pea.
pie. But the single case OF the State Of
New York, without further citation. dis
proves the wholesale assertion lately publish
ed that mot a dollar Of tarot,on had bee,,
levied o, pad THEREFOR"
In each of the States named, and they
are now all distinguished for railroad I'M
PIGMENTS. the railroad system languished
until State aid was entirely Withdrawn.
Ohio.and Indiana are the only free States
Of the West that have attempted 10 assist
corporations 10 build railroads by aid from
the State Treasury
Michigan and Illinois are the only free
States Of the West that have undertaken 10
build railroads az State works The cxpcr-
incnt ia each Of these cases also, resulted
disastrously, and was abandoned. Thus the
experience Of all the free States of the West
has created the unanimous conviction that IL
IN u bad and ruinous policy for State TO
apply It's credit, bonds or money. in whole.
or in part, or in any manner, 10 the building
Of railroads. Such aid in these States has
been universally rcprobatod ~ n damaging,
nay, more, an . fatal obstruction upon the
track Of railroad progress. The philosophy
Of this fact is no mystery. liy converting
politicians, especially that class Of soldiers
of fortune in the new States, into GnGncicrs,
the exciting and attractive pursuit Of PUBLIC
rIUsDER IN almost sure 10 become their bar.
amount and absorbing vocation, leaving mel.
ther means or capacity Tor building railroads
anywhere else than on paper Shall We Of
Minnesota, give a new illustration Of this
instructive fact ? in the financial crisis Of
ls3G-7-s, a number Of States embarked in
the experiment Of developing State resources
and making money plenty by means Of Pub
he Debt. In every case, the issue Of the ex-
pertinent WIS deplorable, almos, Immediately
resulting in general bankruptcy, which in
two or three years lei to a project for the
Sumption Of State Debts by the General
Government.
The dcusion Of financial relief " induced
the Legislature Of Mississippi TO issue FIVE
millions Of bonds TO enable the Union Bank
10 make money plenty. Population and dis
as.er were the almost immediate consequence.
The people were soon cheated. disappointed
and incensed. A reputation party was
formed. which in the first onset drove the
bond payers" from power.
The different States lost by this expert
ment fifty two millions Of dollars. OF this
sum, Alabama lost over nine millions, H.
Iinols over three millions, &c. This costly
experience put quictW on all projects for
the issue Of State bonds az q capital for
banking. Any State that would now ven
ture upon such policy. would lose its credit,
aud solid capital; and It's financial energies
would Immediately collapse
But in the whole hiytory OF "Finane,ai
kei,1" PROJECTS by the States, have been
unable 10 find one example Of folly 10 oh.
sious, az Minnesota will expose 70 the world
BY the ratification Of the proposed $4,000 T,
300 loan bill, which contains no substantial /
.curities whatever.
The fabricators Of this scheme oi "fnan /,
nal reft,fC, tell the people that the securities
are "ample, and Just such securities ~ the I
state of Missouri accepted from b'r land
,rant companies, II not better.
The Missouri scv for the loan Of State
.redit TO the land grant companies. are too
Ioluminous for publication In this article
have examined them carefully, ending the
AK with The gratifying conviction that their
faInefs and enActOrs were honest and On
igbtened men, who, while they believed In
be policy u extending sacb aid 10 their rail
oad system, at the SANE time guarded The
'ublic interest. Every good ci,izen will regret
hat fully a. much cannot be affirmed Of our
,~n legislature.
will give brief synopsis Of the Missis
ippi railroad securities and safeguards
o~ in force, which DO intelligen ad-
ocate Of Our loan bill will he likely 10
eny over ha own proper signature.
guE!rfH % rBg Missouri ACTS yoR rnE
OAs ~ sTArE CREDIT TO RAILROAD cor.
rAUEs.