The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1875-08-26
Exploded Fallacies.

Exploded Fallacies
We direct particular attention to the follow
ing suggestive article from the Baltimore Sun
of the 18th. 1t must be admitted by all impair
tia minds, which are capable of tracing effect
to cause and that have become acquainted with
the actual condition of the finances of the conn-
try, that it is not scarcity OF money that has
produced the prostration that now pervades
general business When it is remembered
that there are now, in the banks of New York
city alone, surplus capital amounting to $47,-
900, 900, and in the aggregated banking instr
buttons of TIE United States, SIO0, 000, cry
en- there by the war that has been made upon
cabital, and the public enterprises OF the
country. in which most of this capital was in
vcsted-that nearly one-half OF the railioaa
corporations of the Northwest have become
greatly embarrassed, and in many instances
their assets thrown into the hands OF re-
ceivers, on account of the insane ana sulcldal
antagonism that has been manifested towards
them by large class of persons, led Oh by de-
signing demagogues- difficulties OF trans
portation, and the absence Of life and thrift
in business generally, can easily be accounted
for. The land owners throughout the entire
West and Northwest, who have been maze IN
dependent by the railroads. are foolishly using
the power thus acquired to PROSTATE The very
agencies which have contributed to their
wealth, and persistently araying themselves
i'm formidable organizations for, first, the par
alyss. and. then, The destruction, of the cor
,;ol,o ia it0nPOVn-
ments so essential to the progress and pos
perity, not only OF that section, but the entire
country. This organized enmity to these pub
lie enterprises has driven from them capital,
which otherwise would be appropriated to
their operation, and compelled it to seek safety
i'm the va It's Of the banks Of the commercial
cities, where it will not be subject to the f1uc-
tuatons and risks that must follow constant
agitation, and the uncertainty OF local leglsa-
ton, directed by the influence OF ignorant Ia
naticism temporarily invested with legislative
authority.
CAPITAL is too sensitive to be made the foot
ball of denagogues. 1t evades agitation. IL
retires from the arena where the Judgment Is
warped and controlled by the inflamed PAS
sons of classes, and seeks security IN strong
boxes and lron-clad vaults. Nor will it make
its appearance to give stimulus to industry ana
life and prosperity to trade, until the common
sense of the country frowns out OF place ana
power the intellectual manikins who noat INTO
authority upon the pestiferous current OF IN
famed popular passions.
Whenever capital is properly respected-lts
legitimate influence and relations III trade rec
ognized. and the purpose is manifested to zeal
with it fairly, it will again lend its power to the
revival of the business Of the country, ana
contribute its share-indispensable to the
health of public enterprses-to the general
prosperity Of the people. Confidence must
first be restored-class combinations and legls-
lation must be ignored and repudated before
this can be accomplished. When this IS done,
we may confidently anticipate the gloom
that overspreads the business OF the country
to give way to the influence OF legitimate cat-
SEES, and the efforts of industry to reap their
proper rewards.
We append the article from the Sun, Which
has suggested these reflections:
ssThere are two fallacies which the expert
ence OF the past year oliSSht " nav oo.o A
TO explode, but which somehow seem to IDLE
hard.'' One is that which attributes the scall-
tv profits of the farmer solely or chiefly to the
want of cheap transportation, and which Is usu-
ally coupled with the further tallacy that the
profits Which the farmer misses the railroads.
make, and that for the purpose OF correcting
this state of things it is the business OF govern
meut either to WELD and operate railroads at
the public expense (alld loss) or to Regulate 1or
the purpose the tolls and profits OF existing
railroads. so as 10 insure the farmer the cheap
TRANSFORMATION he desires. 1t so happens that
during the past year we have had a railroad
war of the first magnitude between the great
trunk lines extending east and west, when
offered while it lasted transportation 10 the
farmer almost OH his own terms. Yet, IN
spite of railroad war and reduced frelgghls ana
| almost nominal rates, trade did not revive, nor
has wealth poured into the Golfers OF the aSfi-
cultlrists Something else, it seems, is needed
| besides cheap transportation to insure an act
| i've demand and a profitable sale Tor the agr-
| cultural products OF the country. Moreover,
| the number of railroads, particularly out West,
| that have defaulted during the year, that lave
failed to pay interest upon their bonds or dlvl-
| deuds upon their stock. or yielded diminished
/ profits. and in some instances passed INTO the
hands of receivers, has been unusually large,
| thus showing that excessive profits are not Tue
inyariable good fortune Of the railroad capltal-
ist and that he does not always roll IN
Wealth. as sometimes represented. Inc e1-
/ feet of these experiences has been tnat o. late
we have heard less OF fllacy NO. l. cheap
| TRANSPORTATION conventions have not peen as
plentiful as of yore, and we shali pIopaely
have fewer schemes for s'natlolial highways.
| han IN Et1 nj