The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1874-09-03
THREE STAGES. OF RAILROAD
DEVELOPMENT.


UE IELOl MHAf 4.
Railway Monitor.l
Mr.. Thomas Tooke, in his History of
Prices, points out the fact that, although
the memorable British crisis of lS47 was
due to railroad expansion, still the evil
was more than cOunterbalanced by the
good, and railroads soon created for the
country more wealth than was destroyed
by the panic. With abundant reason we
may apply the same principle to the
present situation of railroad enterprise in
this country. The panicof last year, like
that referred to by Mr.. Tooke, was due
to two causes. First, we allowed our
selves for six or eight years TO spend too
much Of our capital in railways, and the
conversion of SO much floating wealth
into fixed capital disturbed the money
Market Secondly, some over-venture-
some people, too anxious to get rich, bor-
rOwed money on call and sunk it in en-
terprises which hereafter may be valua-
BILE, but in the panic were not worth
tithe of what they cost. In these facts
there is, however, no discouragement.
England soon recovered from the trou-
bles of 1S47, and in like manner we are
with unexpected rapidity emerging from
the embarrussments and depression Incl
dent to our panic. The question now is
MS to our probable movements in the inn
mediate future. In foreOasting these il
may be well for us to remember that
railroad progress may be very rapid for
two or three years to come without our
having much increased mileage to show
for it. In looking back into the past and
forward into the future, the thoughtful
man may easily see three distinct stages
in our railroad growth. First of alive
observe that the early construction Of our
railroad system was slow and discour-
aging During the first twenty years,
from 1929 to lS40, we constructed but
1866 miles, or less than we built recently
in single year. Even this slow and
tedious progress was too much for the
financial strength of the country. These
roads were Cheaplyl built and poorly
equipped, but they absorbed the floating
funds which were wanted for the busi-
ness of the country. Converting these
mObilized funds into fixed capital, our
railroad projectors were ruined, and
brought upon Ms those frequent panics
which marked that rudimentary stage of
our railroad history. In Europe the
prospect was darkened by political
spasms which shook every throne on the
Continent. The gold discoveries of 1913
started new era, chased away the gloom,
and sOwed broadcast throughout the civ
ilized world the seeds of prosperity which
even yet have only in part begun to
germinate. The twenty years which sue
Ceeded this immense influx of the pre-
cious metals quadrupled the productive
power Of Europe and developed indus
trial and social forces which are wholly
without precedent in history. Theorists
amuse themselves by ascribing this grand
transformation to economic reforms, or
to religious, political, or social causes
which happen to coincide in point of
time, and might have had, perhaps, some
slight part in the wonderful transforma-
ton. But, as has been said, the wide
spread forces, the resistless tide Of ma
terial progress, was due to no minute
eddy or local torrent. Like the great
Gulf Stream, 1t spread wide its arms and
restoredwarmth and life tot the paralyzed
industries of two broad continents. Rus
sia and Germany, France and Austria,
Belgium, Switzerland and Italy partook
equally with ourselves Of this invigorat-
ing stream of gold which poured itself 80
copiously into the currents OF industry
from the West and from the East, from
the wildB Of Australia and from our own |
Sierra Nevada II is not for us us TO ex-
plain the precise method by which the |
addition Of hundred million dollars |
year to the worlds stock Of gold should |
produce an impulse so much greater than |
could be started by a like sum Of any |
product which the wit Of man has ever |
utilized Perhaps the phenomenon can |
not be thoroughly analysed until II has |
received more mature development. |
However this may be, it is certain that |
10 the gold discoveries and TO the conse- |
quent abundance of money we owe the |
material progress, the gigantic industrial |
which have characterized |
the two decades from 1850 to 1870. The |
first of these decades qiadrupled our |
railroad mileage. In 1S49 we had 1855 |
miles Of road, and in 1859 we had Is, 1883 |
miles. And here closes what we have |
called the second stage Of our railroad |
growth. The third stage has carried the |
railroad network from 28,7S9 miles in
1859 to II ,565 miles in 1878. We have |
now almost as much railroad mileage as
exists in the whole Of Europe. But the
wholesome stimulus Of the gold discoy-
cries has been supplemented by the
morbid and perilous excitement Of paper
money imitation. Under this evil slim
uluB we have done too much railroad
building, and have not done itwell. FL
much Of our work is not good
work, and must be made good before we
can go on. To make safe the weak parts |
Of our railroad fabric, to strengthen the
unsound parts and make all strong and
firm, hundreds of millions of dollars will |
be required TO be invested. This sum
we shall need TO spend in making good
the existing network without building
any new roads, except here and there q
short link or branch To complete the sys-
TEN. In view Of these facts, what we
have to do ia to suspend for while all
at new work, and to concentrate
our whole resources on the task Of max
ing good what we have already done.
BY this course we shall secure, with |
other advantages, that Of attracting capi-
tai to our railroad system, andimproving |
at home and abroad the credit Of our
railroad securities. "Di1'