The great West. [volume] (St. Paul, Minn.) 1889-18??, 1892-11-11

ROlO ana silver xf00 ana u011u1JSO CO4Qe
age, continuing the present system q
issuing either coin, o. gold and silves
certificates, at the option of the owner
of the bullion. Then as fast as gold o.
silver coin or certificates are received
and sunk into the railroad sinking fund.
pay out upon legal appropriations United
States full legal tender paper money in
the same amount to take the place Of
the gold and silver held to redeem the
railroad purchase bonds.
But, it may be asked, chow will that
demonetize gold and silver?" I answer:
BY the force of public education and
the example of public precedent. We
have now, in round numbers, about one
billion dollars in gold and silver money,
and with free coinage of silver the two
metals may be relied upon to furnish
s6O,OOO,O 900 additional each year. Under
the operation of the system have out
lined, $3.50, 900 in gold and silver will
be locked up in the government vaults
each year, and United States legal
tender, paper money, issued in its place;
such money being ''bottomed on taxes"
and reaeemable in United States one
per cent. interconvertible savings
bonds of small denominations. At
the end of a decade $1,000
100000 of such money would be
in the hands of the people, having re-
placed that amount of gold and silver,
which would then be paid to the holders
of railroad purchase bonds. What would
these men do with this gold and silver?
They could do one of but three things,
First-Invest it across the ocean,
either permanently in real estate, OF
temporarily in merchandise, which they
would have to bring here and exchange
for paper money. In investing abroad
the gold and silver would be sold by
weight, thus being demonetized.
Second-Store it in cellars or vaults,
in which condition it would possess less
value than a cellar full Of potatoes.
Third-Use it at home in buying real
estate and the products of labor, or loan
it in competition with the paper money
loaned to the people at two per cent, in
accord with the demands of the Cincin-
natl platform.
There appeared in the August mum.
Der of the Arena an article upon the
subject under consideration, prepared
by G. Wood Davis who is known to be
an experienced railroad man and an ac-
curate and well informed authority
upon RAILROAD statistics.
In the course of the article in question.
Mr.. Davis presents a carefully prepared
schedule of savings" which would or
could be effected by government owner
ship and operation. shall, therefore,
take the liberty of using his schedule
Of savings" in the summary or recapitu-
lation which shall now offer, in which
hope to make the justice, necessity
and feasibility of the peoples owner
ship and operations Of the railroads so
plain that ga wayfaring man, though
he be fool, need not err therein" Mr..
Davis schedule is as follows:
Saving in consolidation of depots
and stats. .......................... sso,oOo,ooo
Saving in exclusive use of shortest
routes. 5000, 600
Saving in attorneys salary and legal
expenses. ....................-.. 100000
Saving in abrogation of the pass evil 100000
Saving in abrogation OF the commits
sion system. Observation-Disclosures. 100000
Saving in dispensing with high
salaried presidents managers, etc. 100000
Saving in disbanding traffic associa-
tons ...:............... 100000
Saving in adjustment OF Gall but
locaD offices. Observation-Disclosures. 100000
Saving in fve-seventS of advertising
account. 100000
Total y. s1eo ZOO
It will be noticed that the total saw
ing in operating expenses" as sched-
uled by Mr.. Davis is $3.50, 900 year.
For the year ended June 80, 1889, the
'sgross earnings of the roads were $780,
100000; net earning, $500, 000, 900.
(both round numbers). The amount,
$500, OOO, 900, given as 'gross earnings,S
does not include the amount paid by the
people to the railroads for the transpor-
tation of the mails; therefore such item
is not factor in the calculation. The
case would stand thus:
Present operating expenses. S640. 100000
Deduct Mr. Davis schedule of saw
ings effected. Observation-Disclosures. 16OOOONU
Net operating expenses. ............ $50. 10000
Gross earnings. Observation-Disclosures. 100000 900
Deduct net operating expenses. 460, 000,0 900
Net earnings. ....................... 4so0ooOOo
Deduct interest account. 200, 0o0,0 900
Surplus. NEUTRALITY-SUSPICIOUS.. $4,000 900
Deduct SINKING fund. 160, 100000
Available net annual surplus. $500. $40, 5000
At the end of ten years one-fifth Of
the cost of the roads would be paid,
while the population having increased
to sO,OO0,0Oo, the per capita cost Of rail-
road facilities would be reduced from
SIG to $12, gross reduction of rs per
cent. and an average annual reduction
Of az per cent, while the met annual
surplus" would furnish fund of $780,
100000 a year for all necessary uses.
The bonds being now payable at the
option Of the government, the sum of
e160,000,000 of such bonds would be
paid each year, thus effecting an an
nual reduction in interest charge Of
$4,000, 900, and adding that amount each
successive year to the surplus revenue
and saved interest fund of the year be-
fore, such saving in interest charge and
the net annual surplus amounting dur
ing the last years of the fifty years
term to the enormous sum Of So, 32O, OO0,-
000-or an average Of 5000, 600, 900 each
year for the term of forty years. This
fund, thus furnished, would build all
necessary additional trackage, and also
ooncfrr1ot cnoond ~. double 49, ~. -