, 1860-03-20
9ttas & Grthttttt.


MISSOURI EOtUss
Before tho meeting o. the present calleo
Bcssion Of Inc Missouri Legislature, VIC not'neu
The uublic that our information from that state
,vas Of. sucl, character as to leave no oouo1
Of tho passage Of tho RailFond b''l' anu 'oe
consequent increase Of the State debt " some
three ar four millions Of dollars Tue result
,,oe ,,,oved The correctness Of our information,
mi, thc holders Of Missouri stocks who were
wise enough to act upoa the advice VIC then
.yoyc them, to change their securities without
DELAY. have reason to thank US for it. Tho bill
as i, tina1!y passed both houses, appropr'ates
s1.4S0, 600 to the Pacific Railroad, S15o,ooo
tn the Southwest brancl, Of the same, and
$500, 600 to tho Iron Mountain Railroad,
making an addition to the State debt Of three
millions one hundred and thirty thousand
dollars.
Dy previous Legislation tic State of Missouri
lind loaned its credit to various Railroad COM
pau;es to tic czteu. O. $2i, $50; 600, OF Which
Sel,451 600 had been issued i'll bonds oi 11'e
State IN to November %, 1859. The earlier
loans we're made on tho following conditions:
When the directors report tlsat S5e,ooo are
subscribed bona ,Iie bs indivi.:uals, tho State
issues its bonds for similar amount; anu so
for each similar subscription of S5o,ooo anl'l
tho l3a,t is exhausted. The later loans were
mads upon a different basis, viz: for every
81 900 1eportcl subscribed as above, the State
issues its lo,.ds for double the amount, payable
in thirty years, with sa1 per cent interest.
The S:a,e is secured by 9 first mortgage on the
Yoals. their franchises, lands, buildings, equip
me:,:s. -. 1-pcn the hypothesis that the whs1c
t,sa ,.,.J IL :i.e :t,a= las been or will shortly
he Issued, the total debt Of tho State IS S"s,'
eso Ou0-s,cc debt other than for Rallroad
2oans bling $780,, 900. By the conditions OF
the 1oaa, tho ro:is wcro 10 pay tue interest
On tho i,onds as i: lcll due. During the year
1853 two Of the roads tailed to pay this inter-
est both III JANUARY aud July; aad on tho LIST
Of January last nll the roads, we believe, de-
faulted. The State. however, made temporary
loans, aud met tho interest.
Tae history Of Western roads during tue las'
three wears is such as TO warrant the couclu.
sIoa, that the Missouri roads will not be able
10 comply with the conditions on which tht
loans were obtained The State will bo com
PEELED to meet the interest sens-annuaily Q,
this largo Indebtedness. She cannot borrow
money for the purpose. because her debt ha'
aluost reached the limit prescribed in ler Con
stitu,ioa. She must, therefore, do one Of tw'
thipgs-either sell the roads for what the,
will fetch, or increase tue taxes. The peopl
will not submit to the latter; ard the fornc
could only be accomplished at so great a sacE;
fee as to make very little impression upon ii
aggregate indebtedness. In either event thet
is trouble ahead. and Missouri Stocks mu:
fiji! far bclow their present market value. ]
view OF these facts, We again urge the holder
Of these stocks in Ills State aud Wisconsin
change their securities without unnecessar
delay. Sooner or later Missouri is aestlne
to pass through the experiences Of 1lllno
consequent upon her internal improyeme1
debt, contracted in 1896. Our advice is
sell, even should it Ire 1t Il heavy sacrifice ur:
cost