Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1890-12-21

fits lasting for period, which will probably
have corresponding stimulating effect on the
market, but for that We must wait. The spirit
and exacting as to the basis of values, and the
tone of speculation is conservative so that the
main conditions to depend upon for any rise in
prices will be substantial recovery in confi-
ply OF stocks through continued purchases for
investment At the same time there Is no dis.
tinct element OF distrustfulness, but general
feeling that prices have gone as low as they
onght and afford a basis for rremunerative pur-
chase on transient or permanent investment.
This disappointment is not unnatural; Tor
such scheme OF control requires very grave
surrender of responsibility and power on the
part OF each road; perhaps greater than any
corporation could be properly expected to
make or be really justified in making More.
over, 1t is very questionable whether any set of
railroads can be held for any considerable
time, in allegiance to voluntary arrangemenr
which called upon each one to sink its own Pc
culiar and special advantages, with no certain
assurance that the sacrifice was compensated
by equivalent benefits. There are not few
who express surprise that railroad presidents
should set themselves the herculean task OF
controlling the virtually omnipotenr energy Of
competition, when 1t would be SO much easier
to cure the evil by removing The chief cause OF
the oVer-competition. Let 1t be considered
that, within the four years lSS5-lSS9 no less
than IL 594 miles of railroad were constructed In
the Southwestern and Pacific States and Ter
ritories-(the area which this arrangement is
lnbenueQ TO cOVerl-aDQ LnaC Ln6 pOpulaLlOn III
cluded in those sections is only l000O,UO0 while
the new road created in the same years in all
the rest of the country was only 20 440 miles for
oAOOO,OcO of population; it will then be seen how
enormously excessive has been the construction
OF railroad in the territory within which 1t is
proposed to apply this system, as CON pared with
the increase of mileage in all other sections.
Seventeen per cent of our population has,
within four years, been provided with 1900
miles of road, while the remaining 50 per cent
OF population has received but 20, 400 milesl Is
reckless competition in these sections to be
wondered al? Is it likely that roads thus
bound by necessity to an active competition can
be controlled by any mere voluntary compactf
Let it be- further considered that this
ly because the State laws per-
nit speculative and rotten methods
OF corporate organization and construction, and
then the true cause of the reckless competi-
tlon which 1t Is sought to control will be plainly
exposed to view. If therefore, it 10 really de-
sired to cure this evil of over-competition why
should not the parties concerned direct their
attention to reforming the State statutes that
permit the building of railroads upon such a
broad margin of ''watered" aptal as to make
over-construction a handsomely paying spec
ulatlonY 1t would seem safe to predict that
railroad investments will continue to be afflicted
with the evil of reckless competition, until
railroad law imperatively requires that the cap
ltallzat1on and mortgages OF a road shall not
exceed its honest cash cost. In the meantime,
inventions such as the one now occupying pub
hc attention will come and go as SO many prac-
tcally worthless exDedients.
In money matters, there is a decided i'm
provement both as to actual conditions and
tone. Confidence is gaining ground in credit
circles and the diminution in local failures
shows that merchants are getting freer accom-
modation from the banks; while the fact that
some OF the banks are returning their Clearing
House certificates proves that the need for
such help Is beginning to disappear. During
the week the banks have lost about 81, $40 900 Of
currency on interior e1changes-the bulk hay
Ing gone to New OrleanS-while they have re-
ceived about 81, QUO net from the sub-Treas-
ury. About 81, ESQ., OO0 Of gold has been received
from abroad, half of which has gone into the
banks, but SO late in the week as to make little
show in the averages of to-day's statement.
Some S2O0O,000 more gold Is on the Atlantic;
but that is likely to be the last of receipts from
NIT of importations of specie. The Bank of
England. though losing gold, keeps its rate Of
discount at per cent, and money is easy in the
open market at London.