Lancaster daily intelligencer. [volume] (Lancaster, Pa.) 1864-1928, 1885-07-02
Che Cai,fastfr 1ntelliaei,fer.
LANCASTER. JULY ., 1855.
The July Interest.

The Baltimore Sun publishes state
ment from its New York correspondent of
the railroad, state and Other bonds upon
which half years interest was paid in
that city yesterday. The aggregate amount
Of the interest is s60,oOO,OOO and it is
estimated that eleven millions more were
paid out in Philadelphia and ten millions
in Boston. This represents the amount of
coupon cutting done for this day in the
country generally upon its railroad bonds,
though good sum must be added to it for
the municipal and other local bonds whose
interest is disbursed at home. Doubtless
some Of the railroads i'm the list failed to
meet their interest, but on the other hand it
is not to be supposed that the list is an
entirely full exhibit of the disbursements
for interest in the financial centres and 1t
does not include dividends on stocks. 1t
may be assumed that not less than seventy
millions of dollars was let loose in the
shape of interest in the Eastern money
centres ON the first Of July. 1t will go in
part to pay debts, in part to meet future re-
quiremants and in part will be reinvested.
The already full Golfers of the banks may
become fuller, but probably not very
much. The people who get their dividends
generally have a place for them and do
not let them rust. Even in these
times when it puzzles wise man
to tell where he may safely and profitably
lay up his money, people generally find a
resting place for their modest stores. But
the railroads that pay out the most of it dc
not get it back again, as they were wont to
fo.-iiai II Investments are not popular
d'he greedy men who got rich by building
raj'r1ads on borrowed money and letting
them slide into the bondholders' hands afte
several hundred per cent. of profit hat
been squeezed out of the construction
are not as happy as they once were. Thei
business is gone; and the most of then
lost all their profits by being caught in :h
sharp collapse Of their schemes. Not onl
was the goose killed, but the golden egg
are gone.
The question of interest is as TO how lon
will the railroads continue to pay abundre
millions in interest when they cannot boz
row any of it back anil cannot earn any
sAjng. Not long of course. The New YOr
Central, which is one of the half doze
dividend payers in the country, has jus
made quarterly dividend of th
half Of one per cent; just enoug
to enable it to stay in the dividen
paying list. The Pennsylvania railroa
has been a steady dividend payer, but
not now saving one and nnag have to pas
its next. When the time seems to hay
come that no railroad is earning dividen
on its stock, it may not be long before fe'
OF them are earning the interest an the
bonds. If their present situation continue
they will not pay as much interest inJanl
ary as they have paid in July.
1t is to be said, however, that the raj
roads are being much more ecoIom
cally and honestly managed now tina
they have been. Their officers are alame
that the thin bones Of their steed prytrud
from the skin in advertisement Of lis earl
removal to the bone yard. The do nc
like the prospect of losing thef noun
They are not stealing anything becaus
there is nothing to steal. Tiey canne
borrow anything because tley have n
credit. Consequently they must work.
is root hog OF die. Hereto6re when the
had made no money with shich to pa
interest or dividends they wSuld calml
borrow it. They decla;ed dividends n
gardless of their earnings, and found.
profit in their bookkeeping which the
could not find in their Business. Most ,
them have thrown up tie sponge on tn
interest dividend matteilong ago, and the
highest hope is to NET interest. The
4 properties are in cGdition to improv,
They wfflgeuaii they earn; which is +,
freshing experience to them; and one W
. think they can hardly fail to father
Though railroad property looks bad in il
showings, it is really in better health tha
it has been for some time. A little publ
confidence to supplement the novel honest
and industry of the alarmed railroad of
cials is all that is needed for their restora