The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1874-01-31

We do not read anonymous letters and communi-
cations. The name and address of the writer in
all Indispensable necessarily for publication
but as guaranty OF good faith.
We cannot undertake to return reserve COM
munications that not used.
Policy Of the Savings Banks Of Maine.
The savings banks of Maine hold over ST.
100000 par value of stocks and bonds issued
by other States, and by cities, towns, counties
and railroads in other States, said States be-
ing also exterior to New England. If to this
be added the amount, fifty per cent greater,
more or less, invested by private individuals
I'M similar securities, the surprising aggregate is
reached of at least ST., 100000 This excee ds
by seventy-eight per cent, the capital invest
ed in cotton manufactures in Maine, as rep
resented in the census of 1870. 1t exceeds
fourfold the capital employed in wooden man.
ufacture, skiold the capital of leather and
boot and shoe manufacture, more than sew
enfold the capital used in the building and
repairing of ships even in the past year of I'M
usual activity. 1t is two and half times
greater than the capital employed in the saw.
ing and planning of lumber. 1t is, in fine,
equal to fifty-six per cent of the value added
to raw materials by the entire manufacturing
Industry of the State, of every description, in
the census year of 1S69-70,
Yet what Maine stands in need of beyond
any other thing is precisely this live, mobile
capital which to so large an amount stands
withdrawn from her own activities and en-
gagged in stimulating those of other States
and communities. The movement of capital
controls that Of population, and accordingly
except in few manufacturing towns and
along the lines of railroads, where money has
been planted and special facilities for business
have been opened up. the discouraging spec
tacle is afforded of industries decaying and of
population stationary or actually retrograding.
or States our numbers would have, it is safe
to say, already decreased from one to two
hundred thousand.
As is well known very large proportion Of
the capital referred to has gone west. High
rates of interest have been the inducement,
sSh pei OcHt willy AOt unucudls ucSe TdCcS
have proved exceedingly tempting to the in
weston as against sound New England securi-
ties, that rarely offer above seven per cent.
Brokers, moreover, have realized on the sale
of many western bonds from two to five and in
some cases much higher per cent, and ac-
cordingiy have been strongly tempted to push
these in preference to eastern bonds, on which
their commissions would usually be one half
Of one per cent, or thereabout. On what ba-
sis many of these western securities have rest
ed has been too little inquired, an indeed at
this distance has been not unfrequently very
difficult to ascertain. The purchaser has con-
suited the broker, and the broker has consult
ed the corporation concerned, and there inves-
tigation has generally ended. In the mean
time the sums drawn from the east have been
laid out by millions in western enterprises, es-
pecialy in railroad extensions, far in advance
OF the times or of any possible demand for
years. Hundreds of miles of railroad have
been pushed through solitudes with scarcely
an inhabitant. Many of them have had no
stock basis and have been built wholly on
bonds, secured perhaps by land grants, which
however cannot be made available for wears.
Nothing else, of course, was to be expected
than that many of these companies would be
found at no late day in default for non-pay-
meat of interest on their bonded debt. Few
persons, however, were prepared for such
widespread and overwhelming bankruptcy
as within few months has shaken to pieces
the financial credit OF so many ofthese enter
prises. Up to Jan. 10. inst, eigbty-fve wcst-
ern and southern railways have ''passed" their
interest coupons, one or more, representing
in the aggregate a principal of $341, SOC, 900,
the interest on which varies from six per cent.
gold to ten per cent. currency, much of it be-
Ing as high as eight per cent. gold.
A large portion of this sum is scattered
about amongst the investors and moneyed IN
situations of New England. the securities now
standing worth not over fifty cents on the dol
lar of their face.
What has proved true of Western railroad
bonds to so large an extent-and additional
crashes are imminent in the same fields
threatening with respect to not few of the
town, city, county and other bonds issued In
the same section. Already reputation of
these has set in. Injunctions are being
served upon towns and counties to preven&
the payment of interest, on the pretext. or
the valid ground, of some illegality or uncon-
sttutionaiity in their issue--and with success.
These securities have been put upon the
market on the same scale of prodigality as
the railroad bonds, for extravagantly costly
schoolhouses. magnificent county buildings.
for macademized roads, turnpikes, ard other
OUTLAWS far beyond the present means or needs
Of the respective communities. Their sale
east has been forced by the same powerful
agencies that have worked off the railroad
bonds. There is doubtless no better paper
than that Of some western cities and towns.
and there is certainly none worse than that If
many others. The difficulty is at this dis
lance for the buyer to discriminate the good
securities from the bad. He cannot learn all
the circumstances of their issue. He does
not know the character of those who stand a.
the prime vouchers for their quality.
But in addition to all this, western invest
ments are now threatened with new and
special hazard, the limit of which none can
at this time foresee. In some of the States
the people have begun to make direct war
upon the capital that has been the chief
means Of their prosperity, notably that in
vested in railroads. The organization of a
large proportion of the voters into Oranges,
has been effected on the avowed issue Of hos.
tility to railroads, of compelling railroads to
"come TO terms and do JUSTICE as their war
fare is euphoniously described. All this in
the face of the fact that every year, notwith-
standing the talk about watered stock, mil
lions of dollars worth of western produce is
brought to market by rail for less than the
bare cost OF transportation. the rates in SOM
cases having sunk to three mills per ton per
mile What safety can there be for capital
amongst such communities as these? Those