The record-union., 1892-06-06
COMMERCIAL DEPRESSION AND
RAILWAY AGITATION.

Mr.. William G. Roberts, in a caustic,
well-considered article in the NeaOS Letter
on business depression in San Francisco,
calls attention to the fact that if there
was prosperity in the metropolis we
should hear nothing Of what is termed
anti-railroad complainings.
That is to say, the present commercial
depression and anti-railroad agitation is
the result of self-imposed restrictions
upon trade, and in their anger over their
own folly the agitators are striking out at
the largest head that can be hit, and that
is the railway industry of the State that
has done beneficence for the State which
San Francisco ignores and has had no
part in.
Mr.. Roberts says of San Francisco:
II is the fact, that commercial and indus
trial enterprises receive and have hitherto re-
ceived an absurdly Insignificant support
utterly inadequate an aid, and insufficient
stimulation, from the millions Of accumulated
and still accumulating capital, the savings
and surplus funds of the people, which accTl-
mutations are to considerable extent di-
rectly drawn from the very fruits and pro-
ducts Of these industries.
He goes on to point out that San Fran
cisco investment has not been broad, but
confined; that it is the practice to accu-
mulate, to loan upon the necessities of
others and to speculate in metropolitan
property.
Thus it may be said these millions are for
the most part diverted directly away from the
general commercial and industrial undertake
ings; and so far as assisting the desired devel-
opment OF mercantile enterprises they might
as well seek the secusion of the United States
treasury vaults and there afford inactive as
sOciation and cOmpanionship to the MANY
other misera5ly misdirected millions therein
absurdly and unjustly imprisoned.
1t is impossible, he adds, to utilize sur
plus capital in right directions, and have
them practically invested in real estate at
the same time. Had there been, through
judicious system of commercial bank
ing, application of money to the encour-
agement, increase and advancement of
the legitimate, secure and progressive
mercantile and industrial enterprises, an
entirely different condition of affairs to
that which now exists would have been
presented.
So long as savings banks and savings soci-
cites continue to be receptacles of by far the
largest proportion OF the savings and other
accumUlations of the people, and so long as
they restrict themselves, or are restricted to
investing these millions in real estate and Sc
curitieS of a kindred nature, so long must the
general industries otherwise disconnected
with real estate and the like suffer- to a
greater or less extent, for the lack OF capital
The means necessary to afford all needed aid
TO legitimate commercial enterprises in its
DfOQGpst o nd
new energy, TO practically revive and main
tain state of general prosperity, are here but
not available: are within reach, but meantime
are otherwise engaged
The misdirection of deposits has un-
consciously been the instrument of di-
verting money in directions not so ad-
vantageous to the general well-being of
the community as if devoted to State
building. The essayist insists, and
soundly, that the generally entertained
idea is error that the highest form of per-
manent safety lies in connection with
real estate values.
All which is logically applicable to the
attitude of the metropolis towards the in
terror. The former has not broad-mind-
Su4y VI CNhSANiSS oiASSCSu 1nNeSLLnenL 10
the upbuilding or encouragement of the
very region which it is now clamoring is
its legitimate trade area, and for which
San Francisco is absurdly claimed to be
the one only simon-pure and legitimate
distributor.
Because conditions of depression for
which San Francisco is most largely re-
sponsible obtain; because inevitable
trade laws enable the interior to secure
supplies direct, the metropolis, from be-
hind its retail counters and boarded de-
posits, shouts in anger against the rail
way system that follows, whether it will
or not, immutable commercial laws, and
enables the interior buyer TO deal direct
with the original depots of supply. The
crude and ill-fashioned demand for re-
formed rates between the metropolis and
the interior in no wise represents the in
terest of the city in the well-being of the
country, but simply and only the desire
of the metropolis to compel the interior,
TO which it gives so little, or none, Of the
energy of its millions OF capital, to trade
in its mart and pay the tribute OF an
extra haul back of goods that must pass
the doors of the interior to enable the
neiropolltans to distribute theln back.