The morning news. [volume] (Savannah, Ga.) 1887-1900, 1892-12-11
alarming Can,tal

Some OF the southern legislators are max
ing the great mistake OF thinking they are
benefittIng their constituents BY urging the
enactment OF laws that are unfsvorable TO
capital aud to enterprises that need the as
sistance OF capital. In the legislature OF
this state, and Of Alabama and South Caro-
lima, there are pending bills which are
alarming to all of those who are in any way
interested In the railroads of those states,
and to those who propose to build railroads
in them.
Money for building railroads or for re-
organizing them cannot be obtained In the
south, because what little there Is In the
south commands a much higher rate Of
interest than railroad securities pay. Money
must be obtained In such money centers as
New York, Philadelphia, Boston and Balti-
more. Capitalists In those cities are willing
10 accept low rate Of interest. but they
want safe investments. Menacing legisla-
ton alarms them, and II they invest their
money at all in states In which hostile leRis-
lation is threatened. or Apprehended, they
demand higher rate Of interest to cover
the additional risk which they believe they
run. in the end, therefore, legislation that
is intended to benefit the people really
Injuries them.
1t not only makes it impossible for them
10 borrow money at reasonable rates of
interest, but 1t checks improvements and
enterprises that would help to develop their
states and open new avenues for business
and employment.
Take South Carolina, for instance! A
large part of the debt Of that state will be
due next July. The last legislature author
lied the funding of the states debt into
per cent bonds at par. Last Friday the
governor reported to the legislature that
per cent. bonds could not be fioated at par.
but that Il { per cents could, if q sinking fund
were provided to pay them as they became
due and the phosphate lands were pledged
as collateral.
South Carolina ought to be able to float
a per cent. bond at par. The 81 per cent.
bonds of this state are quoted above par.
South Carolina is not a poor state by any
means, and the only good reason why she
has failed to find a market for 4 per cent.
bonds is that the general course OF her leg
islature relative to matters in which foreign
capital is invested is such as to make capi-
talists hesitate to invest In anything which
can be reached by her legislature.
Only few days ago prominent railroad
man appeared before a committee Of her
legislature and protested in vigorous Ian
guage against q pending measure which
threatened. he said, to ruin the railroads of
the state. But little attention was paid to
what he said.
In the legislature Of this state there are
bills pending which are ex-
tremely hostile to railroads. II
they should become laws they
would make 1t impossible to reorganize the
roads Of the state that are now in the
hands Of receivers. In the legislature Of
Alabama bills have been introduced that
are fully as inimical to capital as those in
this state and South Carolina, and yet In
all Of these states efforts are being made to
attract capital ana to establish new enter
prises. Unless greater liberality is shown
in dealing with matters that are dependent
upon outside capital those states will find
their progress greatly retarded.