Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1875-11-20

~ ent OF the interest. The money TO build
Il is road has TO be brought from abroad. Eu-
N pean capitalists have the money 10 loan,
but have all The bonds of non-interest paying
roads they desire: They now htId many
American railroad securities, about which
magnificent statistics were butlded, and
which showed larger possible earnings than
those have presented 70 you. In iuture In
vestments they have determined not 10 risk
their money in enterprises that have not the
approval and confidence OF the people who
are to be benefited, no matter what
a dazzling array OF figures may be presented
to lure the Individual judgment, or hold out
large prospective gains. II the enterprise Is
worth prosecuting, they say, "shoW us somt-
thing beside prospective earnings; show us
that your own people have confluence IN 1t,
and want the improvement forwarded This
is one reason why a government guarantee IS
wanted. The projectors OF this movement
want to present capitalists with an indorse-
ment, which, in effect, says: ave, the Amerl-
can people, believe the wants OF the country
demand the construction of these lines OF rail-
way, and that they are of a character and of
sufficient utility to insure certain rate per
cent. upon given rate of cost per mile." We
want the United states to do what Great
Britain did in British India; what the French
government did in France, and what the Bel
gian government did Tor Belgium. British
India is 1890 miles long, and 1900
miles broad. 1t is a country OF huge forests,
plains. 1t was the only cotton growing terri
tory belonging to Great Britain where cotton
could be grown with profit; but the cost of
transportation TO the SeabOard was so gre at
that the India cotton could hardly enter
into competition with American cotton.
England, at the breaking out OF the
late war, found herself dependant on
foreign power for a staple, the manufacture
of which furnished thousands OF her people
with enjoyment. Railroads had to be built
In India TO cheaper the cost OF transportation
and encourage the culture of cotton. Private
enterprise, with ali its array of persuasive fig
ureS, could not induce capitalists TO furnish
the money 10 build the reads. AS the open
ing of the country and its settlement was one
which affected the Engli'h people, and pro.
duced staple which afforded large employ;
ment to her laborers, it was determined
to build 1900 miles of railroad, the
cost of which, according TO the esti-
mates furnished, was S44O,GOO,OOJ The Eng
five per cent. interest on all money that
should be invested in the building of the
British India railroad. This guarantee gave
the required confidence, and the construction
of the roads went forward at once. Under the
law one-half of the surplus income was de-
voted to paying the advances for interest
made by the government, and the other half
was divided among the stockholders. In the
year 1865 the English government paid inter
est amounting to 81 7,2jO,OOO per annum; in 1865
it was reduced to 81 100000 and in 1867 TO 50 00O
600. The difference between the English plan
and the one proposed by the friends of the
southern Pacific is, that instead OF paying
one-half of the surplus earnings to the gov
ernment and the other half TO the stockhold.
ers, they are willing to give the government
earnings of the road until itsIs fully ipdemnl-
fed In 1852 the French government, in order
to stimulSte the building of railways,
gave a guarantee of five per cent.
upon capital so invested. All the
money that could be used was offered, and
from 1887 to 1851, France, from S5 miles OF rail-
way had run up to 4475 miles, The govern
ment guarantee never was called for, six of
the lines paying ten per cent dividends. No
ticing the prosperity which followed the com:
petiOn OF The rC ads, the French government
guar6 nteed four per cent. on bonds, TO be used
IN the further construction of railroads, to the
amount of S620,0oO 900. In nine yeals succeed
ING lS57 Fran q huilf AhlH miles of railway
ana during that period her exports and i'm
ports increased from Sl73O76OOO to S293, IA coo.
All Europe knows what guaranteed bond is.
The fact that a bond is guaranteed by gov
nmentiS passport TO Jne money martS of
the world the fact that il is guaranteed salts
hes the purchaser OF one OF two things,
either of which gets the money, first,
that it is a matter of such national
importance that the government Is will
ing on its own responsibility, to guarantee
the payment; or, second, that the government
Is satisfied the enterprise is of such q charac-
ter that ii runs no risk in indorsing it. The
great financial world is last changing It's Ideas
in relation to the no1-payment of debts. AT
the recent banquet OF the London munich
pality, the ministers of two South American
states were excluded because of the financial
affairs of their governments. Oiher South
American States and powers are in the same
condition. But few days since saw 1t
stated that the aggregate debt OF the default
ing States amounted in round numbers to
1850 200, 900. This is a very large sum of
money, and the money to build South
obtained from the very localities where these
bonds are held. In order to get the money
security must be presented whicn will coma
mand confidence. 1t has been intimated that
the day is not far distant when the nations of
financial integrity Will refuse TO receive or
recognize the diplomatic officers and agents
of those states whose financial credit is al
lowed to fall into disgrace. If such a combt-
nation is entered into, we want the 1ndorse-
ment of a nation that stands second to none
in the universe. Ifit be true, as the advocates
o greenbacks say, that confidence Is all that
is wanted to make paper dollar as good as
one of gold, we want such an Endorsement as
will give us the benefit OF the confidence of
the capitalists OF the old world.
THE SAVING TO THE GOVERNMENT.
The amount OF guarantee asked, for all the
lines, will not exceed five millions OF dollars
per annum, and we claim that The road when
constructed, will annually save the govern
Tuent more than the entire amount of the
ouarantee even if the United states had to
pay the entire amount. In short, we claim
that the government could and would save
more Than five million dollars per annum II
this load was completed: 1t was shown to-
and so reported by, me military committee q
the house of representatives, that ihe annual
saving of the government on The use OF the
Kansas Pacific, in 1867, was SS46383. General
cherman testified before senate committee
that If the Kansas Pacific was completed TO
Albuquerque, Cne-half of the troops could be
dispensed with, and that three and half
millions of dollars would be annually
saved the government. Take your map
and study the indian geography OF TINS coun-
try, and answer me II three mi lion five hun
dred thousand dollars could be saved annual
ly by completing the Kansas Pacific to Albu-
queTque, what amount would be saved the
government by the construction of the south
ern Pacific? a senate committee in making
up report on the saving OF the construction
of the Texas Pacific, say Economically con-
sidered, 1t is too clear TO admit of question
that for the military, postal and indian ser
vice of vast territory the line of road seek
ing the aid of the government is an absolute
necessity. The report of committees OF con-
gress and the records of the government show
conclusively that the constru ction OF the eX-
istipg line of railroad to the Pacific has, since
its completion, saved to the government an
nually two thousand dollars per mile, and
(thaU a saving Of an equal, II not greater
amount, will be effected by the construction
of this road" Continuing, the commit ee
say: "The saving by the CONSTRUCTION
Pacific roads has been 70 great, that were the
government to pay the entire principal ana
| interest of the bonds loaned 10 AID In thell
largely in its favor. " The construction
| of this road (Texas Pacihc) will enable tue
government to withdraw three-fourths OF tne
troops now stationed in the country traversed
1 by 1t, and render the whole force now EN-
| pioy ed there far more efficient and the savlr
| so effected added TO the diminished cost OI
| transportation of military stores, indian sup
| plies, and the mail, will aggregate, every year
| more than the annual amount OF the interest,"
| on all the bonds proposed to be issued. The
| same committee inform US that twenty-five
| Years ago the United States paid SlO,OOOOuO tol
| Arizona, and that since then the subsistence
i
| protect the settlers in New Mexico and AItZo
| Il has cost the government over SlOO,VOOOv.
| The committee further state that to protect the
lives and property of the white inhabitanfs OF
| the country traversed by this line Of road, re-
quires one-fourth OF the available strength o.
| the army. and that the extraordinary ex
| penses thus incurred cannot fall short OF ter
| million dollars per annum. From the 1acts
| thus given you can make your own estimates
| of The actual saving which will result TO the
| government, and the benefits which 1t will re
| ceve as it will be impossible, in the time tc
| which am limited, TO go into further detail
| Ifthe government continues to cO!onlZe 1tS
| Indians on our borders, liberal allowance
must be made in the computation. The de
| yeIopment of new territory, the addttiona
we fth, the additional revenue given the gov
ernment, the employment of the labolini
| masses and the resuscitation OF the mining
and manufacturing Interests Of the countr!
which would follow the building o
| have but time to mentioa, anC
not discuss. That railroads benefit the coun
| try cannot be denied. In 1850 the freigh
| moved by rail equaled All pounds per head
| eGualed 2777 pounds per head and was value,
| at S2l0 per capita. The investment of sl,4U0
| 100000 In raj roads between 1850 and 1868 wa
| the means OF annually creating a commerc
hve times greater than the amount invested
| The statistics of this country show that ever
| dollar invested in railroads has Gre
| ated five dollars yearly. That the con
| struction of these roads Is a mai
| ter of vital importance, from an ecOnOmi
| standpoint alone, think have sufficient
shown. If it is, then the government ougt
, not TO hesitate in helping the comp Anies g
, the money at the lowest ruling rates. Asid
from the proposition stated, there are Other
| why the government SHOULD guarantee th
pay yment OF the Interest on tho bonds TO b
used in the construction OF the roads. III
= | middle nOrt STATES. by the ii