The Somerset reporter., 1892-11-10

Board of Trade Hon. Fred l.. Richards
rcad paper containing the following
logical and practical views upon m inn
portant subject which are worthy of
careful peru,al
"IIow can men with capital and bust
ness experiences lac induced To develop
the resources OF Maine"
Men with capital and experience are
certain to invest their money and direct
their efforts Ia the field where III pros
poet of the largest profit i most prom
l>ing. II thc natural advantages III
Maine are ~ great H. those OF other
states, and vet in the development ot re-
sources she Is not in line with other
sections of the country. thu reason mus
he that capital and brains are directed
elsewhere through somr defect in our
public policy.
am 10y no means certain that the re-
sources of other states have been de-
veloped To greater ratio in proportion
To natural advantages than those OF
Maine, although the proposition sub
mittcd Il, a subject for discussion car
ries with il the int renee that Maine Is
not in step with her sister states in
utilizing the endowment which nature
'arge areas of uneultiyatcd lands. it Is
because they cannot be cultivated in
competition with the acres of other
states. If our grazing lands are not
dotted with herds, it is for the reason
that in wool-growing and stock-rilising
Maine cannot compete with other see-
iions of the country. If We have hun
dred, of idle water powers here, there Is
surely some COED business reason why
they are running To waste instead of
whirling the wheels of industry. If
large sections of our state are untray-
ersed by locomotives, it j. because the
promise of railway earnings l. better
where railroads have been built.
Unlike the new states of the West,
Maine has no II ed to interest capital
from beyond her borders. 1t is only
necessary to satisfy our own people that
better results are to be attained by EN-
ploying their capital in the Develop
mcnt of our own resources than from
foreign Investments. to materialize all
the possibilities of prosp rity of which
the natural conditions of Maine. by i'm
provement. are capable.
The capital for the development of
the great West has been furnished largely
from New England, and Maine has con-
tributed her full share in this direction,
and to-day large majority of the bank
inc capital of this state is represented
bv the promise to pay of foreign borrow
nrs. OF the total resources of our sav-
ings banks, which;ast December amount
ed to S53, 550, S7l.i7, only $50, 4sl ,4i5.-
26 WAS invested in Maine securities and
loaned upon Maine colatcral- and Maine
If the millions of holdings
of private investors of Maine could be
scheduled. a larger proportion than this
would be- shown To consist of foreign i'll
ycStmcnt-.
The reason why money leaves Maine
is that borrowers elsewhere pay more for
its use than can be obtained for invest
mentS or loans at home. The West has
few money lenders in proportion to bor-
rowcrs Bank capital il largely the
property of Eastern investors. Their
business men are obliged to look 10 the
East for their loans. and in order to OBJ
tain them they mu pay one or two per
cent above the late that the average New
England borrower can afford To pay Tor
money to be used in legitimate business
in the East. The Maine manufacturer
reasons that unless lac is sure of five per
cent MONEY, he cannot afford to Increase
the producing capacity of his plant. The
WcStcrnrr says. II must double my pro-
ducts. and the increase of population
will enhance tn value Of my property
here; and will borrow the capital for
this purpose at as low rate a. | can,
but must hive ii anyway" 1t is the
more rapid growth of the West which
enables it, business men to pay more fol
the use of money than the Eastern Dor
ro%cr can afford. For example, An
Eastern corporation is organized with
the purpose of supplying village with
water for domestic use. They count
the dwellings and base their estimate of
grosS earnings upon the present popn-
lation and limit their interest charges
to conform th"retn
\ kindred company in the West con-
Struct~ its Works and issues and sells
lis per cent bonds in Il volume sufficient
to pay for the cost of present construc-
tion. the probable requirements for eN-
tensions, and an additional amount TO
pay the interest coupons of the bonds
for five wears To come, assuming that
the growth of the town will be sufficient
by that time to put the works upon Il
sclf-sllStaining basis: and generally their
proves correct Banks and
money lenders of the Fast recognize
that there is more risk in making in
ycstmcnt~ in the West than at home,
and except for the higher rate of in
tercst, home investments would com
mand the preference.
Now the progress of development of
the resources of Maine depends upon
nothing else than in keeping Maine mon
ey employed in Maine enterprises and in
dustrics. and the only method by which