The Dallas daily herald. [volume] (Dallas, Tex.) 1873-1887, 1876-03-29
The Texas ana PnciGr BiII-Its Mean.
Ing md OprrRiiOu.

"If the Texas. Pacific road Is needed
and is going TO be such splendid az
fair for all concerned, why cannot Cot
onel Scott get ample capital to 90 on
and build II, for surely there is no need
of asking the government to guarantee
the interest ON its bonds" This ques
ton, In one form or another, we have
seen put by the mOnopolsts and their
friends, M q knOck,down argument,
at the least calculation hundred
times. Leading journals that ought to
know better, and do know better, have
not scrupled to impose upon their
readers and the public as conclusive
reasoning such shallow sophstry ~
the above. However, treating such ar
gument with a degree Of camdor II does
not merit, we will here state the reason
why the Texas and Pacific Company
seek the endorsement OF their bonds
by the government. This road must
be built, if at all, by means raised
through sale of its bonds. These
securities must mainly, in the usual
course of trade, dnd their market
abroad. The means TO blild and
equip must come rom the
great monetary centres in
Europe. And what do the capitalists
there know or care about the present
or future condition and prospects Of
the Texas Pacific, or whether ii will
ever be able TO meet its obligations
Neither will they take the time and
the trouble to hunt the thing up,
There are too many other projects
known TO them to be sound and safe,
in which they may invest without that
and they would be almost sure
t 0 class this great enterprise rs one of
that numerous list Of American rail
way frauds got up to fleece foreigners
But let our Government say-and that
$ all the company ask--"we guarantee
you five per cent. interest on these
londs,n and they will be sought foI
md readily bought at par and above
These securities would then ut once
take rank in all foreign markets next |
to United States bonds. The money
lender there, sees on these securities
and endorsement by the National Gov
in effect, like this "These
bonds are good, and we guarantee you
five per cent INTEREST," He looks no
further cares for nothing more, and goes
his pile on Texas.Pacifc. Well, there
suit of this simple endorsement is to
bring into the country S15, 900, 900 of
foreign gold Who can tell the impe-
tus this great influx of capital would
give to the general business of the
country; setting to work an army of
unemployed laborers, on a line stretch
ing almost from the Mississippi to the
Pacific; in rekindling the extinct fires
Of our FORCES and furnaces, and in re
generally, the now palsied
industries of the country? Who can
ell but what something like this is
needed to set in motion the forces that
are to rouse the energies and industries
Of the nation from the lethargy OF
years? But TO return. On the other
hand, suppose these bonds do not re-
,eive the public guarantee of their in
crest, what then? Like many an
,ther great enterprise, the compahy's
will be slaughtered at forty
% fifty cents on the dollar, to furnish
he means to complete the work,
md thus it will have cost, as any one
nav see, more than twice to build
hat it would had the desired
been obtained. But at the
'isk of playing too long II tune on a
larp of one string, let us further at
,empt to make plain to the most OBJ
use apprehension, by an everyday,
the entire scope aud
of the bill in question. We
will suppose Smith come over from
Europe and buys farm up in Orange
for $4,000. He desires to lay
out, say $4,000 in Improvements. so
our friend Smith makes his bond and
mortgage for that amount and comes
to the city TO negotiate 1t. He goes to
one broker after another, and becomes
first astonished, then indignant at the
way they talk to him. One fellow of
fers him forty, another forty-five, and
last and best, one gentleman, our
friend Todd, we judge, will five fifty
cents on the dollar for the mortgage.
All the brokers have the same string
of objections. "Yourproperty may be
good for the amount, or may not be.
sides we don't know you-cah't tell
whether your own bona Is goou LOT
any thing, and whether you Will pay
the interest or not" Nearly distract
ed ut the idea of sacrificing his securi-
ty at half it's value, he seeks the adj
vice of Mr.. A. +. Stewart, whom he
happens to know aud Me. Stew
art also knows Smith and his
property. "Ah! yes" says the great
merchant, al see where your trouble
lies hand ME your papers," and he
thereupon writes across the back OF
them, above his own name, these
words; III guarantee payment Of the
interest on this bond.p With this in
dorsement, Smith returns To wrestle
again with the brokers. He finds them
quite another set of beings entirely.
But the still indignant Smith wants
his little revenge; so in closing up, he
gives preference To the broker who
at first offered most Paul p. of course).
A. al II. . q i.