National Republican., 1878-01-11
The Effect of Contraction.

lnefe II one result OF tne nnanClal pOlCy
of the Administration which we have not
yet seen commented on, and which de-
serves mention. The plan Of contraction
commenced three years ago, and its results
upon the railroad interests Of the country,
are now being seen.
There are over seventy thousand miles of
railroad in this country built by private
means and representing at least two thou
sand millions of dollars of aggregate and
invested capital Most of this was from
the savings Of poor or moderate rich men
who placed their surplus money in schemes
of internal improvement with the hopes of
benefiting themselves and helping the
country, and until the policy Of contrac-
ton commenced, most of these investments
weie doing BOTH but after three years Of
that policy we find the result upon rail-
roads in 1877, Us recorded in the Chicago
RdiI~dy Age of January I'd, one of the
leading railway papers of the country.
We shall not transfer the tables from the
RdiIrdy Age, but will give the aggregates
and make some comments on them.
There were sold in 1877 under foreclosure
for the benefit OF the bond-holders, tifty-fyt
railroads, aggregating three thousand, eight
hundred and scventy-fvc miles Ofcompleted
road, with capital stock of $79,0i5,7OO
Proceedings that will result in sales were
commenced against forty-four other roads
with an aggregate length of five thousand
four hundred and nine miles, and capita
of S156 lOs,0iO. Besides these, sixteel
other roads, two thousand three hundred
and eighty-eight miles long, with a capita
stock of Sl28,9 ,92l 800, were ordered sold a
some future day.
were sold, ordered sold, or proceedings com,
menced which will result in sale, eieren thou
uRd, sir hundred and seUenty-ttpO miles o
railroad, with capital stock of three hun
dred and sicty-t,cO millions of dollars. Ii
other words more than One-seventh of TIN
I entire railroads Of the United States hav'
been sold or soon will be for the benefit o
the bond holders, and the people who OWNED
these roads and this money have lost ever,
dollar invested in them besides the floatinl
debt of not less than thirty millions of dol
lars due to the people along the lines o
these roads is also destroyed by the sale, a
the bond-holders never bid more than tn
value of the bonds they own.
Men talk of the war Of labor against
capital, but these figures prove that the con
centrated capital called bonds" is warrini
upon all other species of property as well %
labor. The war is not on labor alone; 1t i
on all kinds of prOperty-it is a war which
threatens to absorb in the hands of the few
the wealth that has been heretofore in tn
hands of the many The financial policy
of the Government assists the few agains
the many-it helps the bond-holdcrs IL
their efforts to absorb the wealth of the peo
pie, and to build up an oligarchy founded
on wealth to rule the country that was ono
ruled by the people. That policy must b
changed, or the people will change it. TIL
rcmonctizatiOn of silver will do much I
break the power Of concentrated capita
and for that reason we find the agents G
the bond-holders bcsieging the representa-
tivcs of the people, and using every argr
mcnt to prevent this salutary measure. w
see the papers in the interest of the bono
holders using invcctivc, ridicule, and ever
other possible means to prevent the passag
, of this measure. The best answer for a
these so-called arguments is careit
perusal of the figures above given. The
tell the story,
SrSArnps Chahcc Inn Rarnum Snrnce