New-York tribune., 1875-01-30
The TEXAS AND PACIFIC SCHEME.
WHY THE GOVERNMENT SHOULD LEND ITS
CREDIT.


CREDIT.
TIE ARGUMENT OF A MAN WHO DOES NOT OWN A
DOLLAR OF sTOCK-ApvANTAGEs OF THE PROJECT
AN ODD COMPARIsoN-THE sECURITY-THE
NORTHERN PACIFIC ENTITLED TO SIMILAR Pa
vORs.
TO the Ed,tor OF Ths Trfbuns.
SIR: hope that in the spirit of fairness which
has uniformly characterized Jour infue ntal journal you
will afford space n your columns TO those who differ
with you about the expedency Of the OF the
proposed measure in the hands OF the Railroad
Committees W the two Houses OF Congress for granting
to the Texas and Pacific Railway Company the Gov
in OF ts bonds and those OF two con-
meeting lines. Presuming that you will allow this
privilege will premise what desire 20 say by stating
that do not own dollar Of stock in any line directly
interested in what Is mistakenly called subsidy and
that what have say shall say wholly on public
grounds and In what conceive TO be the public interest
There is conceive a material difference in the OBJ
jects viii be accomplished ny the granting OF the
public credit the Texas and Pacific, and connecting
lines through Missouri and Louisiana, and those at
tained by lending the credit to the National banks
which THB TRIBUNE and other leading city journals
strongly favor. In the Of the railways great and
substantial public works will be created and market
value be gwen 900 Of public lands hund-
reds OF thousands OF emigrants Will be drawn to the
country 10 purchase and settle these now valueess put
fertile tracts enough in extent 20 create many states
wealth VIII Dc developed revenues OF
the National Government viii be thereby increased
more than the annual interest 10 be guaranteed and
finally the country will be consolidated, the public ex
peusrs transport and keeping the Indians in su0ee-
on VII be reduced the Southern question solved and
OF national prosperity inaugurated by so large
an expenditure Of capital, and the wheels OF industry
now clogged will be set in motion. These are only a
few of the striking advantages that Will result
from this measure.
+ba nd d il oard nv ad
cate the loan OF the public credit TO the National banks
70 trade on to change the noninteret bearing debt OF
the United States, amounting before the last hnanea
act wac passed 10 ts2 oOOO into an ineresDearng
debt In order TO lend same without interest TO
the banks adding about $50 100000 year to the
public burdens-and for what objecti Simply 10 help
these great national mOnopoes TO increase their gains
at tie public expense and without giving any public
advantage whatever In return II may be argued that
the banks offer better security IN the shape OF United
States bonds with margin OF 10 per cent OF tDer par
value than the security offered by the Texas and Pacific
Company. Let d this proposition ttle not
only WITH reference TO the principle involved but also
with regard 20 the security. In tue Govern
ment credit lent for the advantage OF class not
very numerous and already rch IN material wealth In
the other II sought IN the interest OF the whole nation
these works being essentially national in character. In
all 1ges the world great statesmen and rulers nave
freely ustdaby used the public means TO construct
highways through their countries a1d we fad from the
days when ancient Rome constructed the famous Via
Appia 70 the present time those nations that led IN
tie opening cheap and ready means Of internal transit
have led tne vanguard Of civilization, wealth and
power These few observations clearly indicate me az
ference between lending the national credit TO objects
OF private gam and works OF present and permanent
advantage 10 the country. But on the question OF So
cuuty n4ch may be said Tue Texas aud Paeinc oil
proposes W give back 10 the Government as security
over 3QOr,OO0 acres OF land. that Will DC worm AZ
east a. 50 an acre as soon as the line is compe eted
Z and
equal quantity OF equally available lanes, owned ny the
Government 20 be improved % lhe extent Two ana
balf dollars an acre on 10000 900 acres Will up
s75O0 OO az OF which 10 70 be paid into the Treasury OF
III United States 20 be applied IN payment " the guar
auteed Add to this s76 100000 the enhanced
Of the public lands and you have Tor TIE pubic
benefit craaOu wealth OF $50 900 OOJ the annual in
terest which per Will amount 10 s. 5cO0O
II IS estimated that the Government will S4,5J0.OCJ
year in transport and Indian expenditure wncn VIII
ralse tns to t00O0OOO year. But in addition TO
a.! this he Government VIII htFe hfst moi,sage On
whole OF the lines OF railway equlp ahd TeVe
nues II tle gToss eaIhtss qua man h@ trose nose o. S ecS
Union aud central Paclnc f-ll way = "HCn a'Iea"y
sll,OW mhe per annum TINS security blons Wi, De Oe
m0,I ample. Now $500 mile, on 1850 miles, Tor which
aid asked gives s 600 Or tue gross ann 1a receipts
and allowing % per cent lof @oIAhs expense
anu 30 for net profit. th"e VIII De ] ieit' IN IN
Sodo sSqS nG1PeF o1ef Inc interest Beside
ali these securities there IL 10 be left IN the hands
Of the United Treasury 5000 per mile OF guarah-
teed Company bonds 70 De used II need pc ln tHe con
unZency Of the Coupanys falling 10 meet promp,y tle
pen az tie and before the trafhc Aas had time 10
develop.
TexIs Pacific and Atlantic and Pacific Compaues would
Involve IKE application from the Northern Paclnc
The Government should extend its aid IN Ike manner
-rthern Pacific. fne country needs them 1oth'
parV shall Congress next session Tor an lndorse
ment and offer equally good security, they ought
aud VIII add u the country wealth-produclng power
greater all the Nauoual banks put together even
f the people approve OF project OF lending them car
culauug notes or paper money 10 the "hOle extent OF
the National debt which He late finance law gives them
/ rIg fnq apyaFf IN al nf4lm
! Aeo York, Jan. 2s, 1915. d. BoWLBf "lLLsoS'
Tout Of an earnest desire that this scheme ior
damaging the public credit aud benehtlng indlyld-
uals shall not be able to claim that it has not been
fairly heard. we allow the correspondent above to
! follow IN the wake of Col. Thomas A. Scott with a
new set of arguments in favor of the Southern
Pacific Railroad. We fail. however, to see any point
in the comparison with the National banks The
! Government lends nothing TO the banks and
loses nothing by their insolvency. 1t merely COM
pels them to for;fy their credit with the bonds OF
/ the Government and both together are none TOO
much for proper security. Aside from this curious
National bank argument there is absolutely nothing
in the letter which Col Scott and Others have not
said great many times before. The simple. answer
TO all of 1t Is that the Government is not now In
condition to be using its money OF Its credit TO Ould
railways out into the wilderness. 1t must first try
to bring its expenditures somewhere within sight OF
its receipts and must levy taxes to meet the den
cheney. The Northern Pacific is now making the
same claim with the Southern Pacific. Ii would De
monstrous injustice to give what asks and refuse
the other; and it would be mOnstrous folly for a
! Government as sore pressed as ours to give both
For the rest beg to add that If either OF these
claimants is to be preferred, we do not think Col
! Scott is the man. Mr.. Jay COoke-whom 1t has
lately been the fashion to abuse-has done the Gov
! II M,