The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1877-02-14

transportation almost an impossibility. 1t
is estimated that over 5000, 000, 900 worth of
the products of this country are now re-
quired each year to meet the interest on our
various obligations held abroad. This is a
fearful drain upon the labor and resources of
the country.
Now the plan embodied in the substitute
will obviate any such ruinous results.
Briefly, the substitute proposes to lend the
credit of the government to the Texas and
Pacific railroad company, in the form of
non-interest bearing treasury notes to the
amount of $4,000 per mile, or in all about
$40, 900, 600, IN return for which the company
shall execute and deposit with the secretary
of the treasury its bonds, secured by mort
gage on It's road and lands, said bonds 10 bear
interest at the rate OF two (2) per cent. year,
interest not TO begin TO run until three ears
after date of bonds. This would enable the
company to commence work at once, with
out shining around the markets Of the
world at an enormous expensesto borrow
foreign capital at exorbItant rates of inter-
est III the company expects TO be able to
pay foreign capitalists per cent. year il
can certainly pay our own government per
cent, which would constitute very con-
siderable source of revenue and tighten to
that extent the burdens of taxation. IL
would also secure cheaper transportation,
for a road built with capital costing only
per cent could manifestly carry cheaper
than one built with capital costing per
cent. But this is not all. Pro-
vision is made that the COM
pany shall pay into the treasury Of the
United States every six months It's entire
net earnings and the net proceeds of the sale
of its lands, and the secretary of the treas
ury shall apply such sum, first, 10 the pay
ment OF interest due to the government, and
second, to the redemption of the bonds of
the company; and II is further provided
that tha fraitrhf nj ,a1l
be so regulated by congress that not more
than two millions of bonds shall be redeemed
each year. This is to render cheaper trans
potartion an almost positive certainty.
IL is manifestly clear that the government
will, sooner or later, be paid back the full
amount of its credit thus lent in the form of
treasury notes, whether IL be in 30, 40, so or
more years, and that in the meantime the
road will prove a source of revenue TO the
government, besides adding enormously to
the general wealth of the country. But mark
the chief result: Not one dollars worth of
the products of the country will ever have
to be sent abroad TO pay for money, either
principal or interest, used in the construc-
ton of the road but all will be retained at
home to further enrich our own people.
Practically, the road will pay its own cost
out OF its legitimate earning and nobody
will be injured, but all will be immeasura-
bly, benefited. That, sir, is the whole plan,
so simple and plain that a school boy could
not fail to understand it,
Reporter-Will not the constitutional OBJ
lection to issuing legal tender paper money
in time OF peace be urged against your
plan?
Mr.. Landers-I have provided against
that The substitute provides that the treas
ury notes to be issued shall simply be re-
ceivable for all debts, duties, i'm ports and
demands due to the government. The au-
thority of the government TO issue treasury
notes in this form can not be questioned. In
fact have copied the exact language of Mr..
Vallandigham's substitute for the legal ten
der act of February % 1862, which was sup
ported by all the strict constructionists and
so-called hard money men in the house.
Reporter-Won't the measure be opposed
as anti-democratic, as favoring corporations?
Mr.. Landers-I can't see why. On the
other hand | think measure which has for
its object the advap tage of the government
and the general good of the masses, as this
one clearly has is eminently democratic.
III you hear of any one running round, as /
am told is the case saying that the passage
of Texas and Pacific bill will injure the
democratic party, you may rest assured that
he has some AK to grind, most likely he is
in the pay of Jay Gould's Union Pacific.
Reporter-Do you think that a two-thirds
vote can be obtained to bring the measure
before the house?
Mr.. Landers-Well, as to that, am hardly
able to express an opinion. The present
house is a very fair one, and disposed to give
all matters of importance due consideration.
| am inclined to think that the measure will
be given q hearing il il is possible at this late
day in the session. If its importance was
fully understood / would have no doubt
ahout IL