The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1859-11-16

ahotu eoH'c guarantee against communal uauy0Ss
and we hope that the Common Council via
lose no time In passing such one as may
prove efectual.
TSaps or borrowers on Public Work.
Another scheme In tho European
Market.
The mania for borrowing money in Europe
engcndered during the fush times Of The
United States Bank, has not by any meAas
died out, and every once in while somebody
starts off on million hunting tour 10 ths
golden preserves Of Threadnccdlc street aud
the Change of London.
The usual process pursued in this business h
a very simple one. An ingenious trap Is pro-
pared, in tho shape Of some great public In
provcment AL the advantages Of tho work
are brilliantly displayed on paper; rich and
fertile country Is opened; cities and towns are
built up along the line, and the fabulous tide
Of human life and industry that Is expected 70
course along il, pours out immense prospective
dividends to the fortunate stockholders or the
still more fortunate mortgages With this
elittering array Of promises, some two or three
prominent men--they generally hunt In con-
plcs-are duly appointed to set the trap aud
bag the game A general impression has pro-
vailed that it Is necessary TO combine, ON
such a mission. two men of very different
capacitiesa politician Of high stand
ing and the higher tho better-to give face
to the affair, and sharp accountant to do tho
ciphering. When Senator cannot be secured,
az is sometimes the case, then President oc
the road will do provided he is attended by
keen lawyer to 500 that his own fingers are not
caught with the game. When this is baggsd,
home they come, and for while the whole set
Of directors, contractors, agents, &C., down to
the brakemen or the navvies. have good time
generally.
Some such scheme as this is now on foot a.
our readers will perceive by letter published
in our financial column. The concern is la
bclcd the "Sunbury and Erie Railroad" and
the object Is 10 bag John Bull for three and =
half millions Of dollars on mortgage bonds Az
for the work itself, it is simply repetition Of
our own Erie bubble, with greatly diminished
chances of success. Nproposes to perform ono
or both Of two objects: First, to open to speoa-
lation portion of the lands and mines Of
Pennsylvania which are now worthless for
want Of cheap road to market, and thus mako
somebody's fortune other than those who pay
for building the road. Second, to add 6fah
competitor for the trade between the Atlantic
coast and the Western States, to secure which
four great roads the New York Central, the New
York and Eric, the Pennsylvania Central, and
the Baltimore and Ohio--have been hacking at
each others throats for years past. The modest
sum of three and a half millions only is asked
for now; but this will do for the present, as
there will be plenty Of chances to ask for more
before the two or three hundred miles Of road
are constructed
Now, this system Of borrowing money 70
squander on public works that have barely a
shadow Of bona .tlde stockholders enough
to form q board Of directors with, perhaps,
only one share each, but all with big contracts
in their pockets--is wrong, and should be
stopped. 1t has given rise to spirit of gam
bling in public schemes, has burthencd nearly
every portion Of the country with debt, and
fastened upon us the accusation of bad faith
and Reputation. The resources Of our own
accumulated capital are abundantly sufficient
for all necessary public works; and it is only
schemes which cannot command confidence at
home that are sent abroad to bamboozle foreign
capitalists We should think that tho money
lenders of Europe had, by this time, sufficient
experience Of American schemes TO put them
on their guard. 1t is notorious that their in
vestments are made in the worst securities
known in this market-as, for instance, those
of the Erie Railroad which are largely held
abroad, and others Of kindred character. II
European capitalists really wish to iAvest in
American securities, their best plan is to on
trust the operation to some honest and worthy
agent in this city, where all these schemes ara
sifted TO the bottom, aud their tricks and traps
well understood.