Washington standard. [volume] (Olympia, Wash. Territory) 1860-1921, 1893-08-18
immense interest profit to their in

immense interest profit to their in
vestment.
The immense system of railroad
land subsidies is cited as another
means by which great speculators were
enabled to build up vast fortunes at
the expense of the public. These
spectators isued and fioated inn
mense sums in gold-bearing bonds on
the security of their land grants and
their unbuilt railroads, selling them
mostly in Europe at discounts rang
ing from 10 to 20 per cent. "The
profits made by these English capi-
talists were immense. Never in the
worlds history had such profits been
made. The widest schemes of John
Law and the South sea schemers were
more than realized"
"To fully understand this, let us
take the actual result Of one years
operations. The English capitalists,
We will say, in 1867, invested $780,
100000 in the purchase of 81 600, ,OOO,-
GOO OF our deprecated currency. They
took it to the United States Treasurer
and exchanged it for United States
bonds drawing 6 per cent. interest in
coin. At the end OF six months they
drew $3O,OOO,OOO in gold coin, and
took it to the gold room and sold it
for $45 100000 in greenbacks. Then
they exchanged their greenbacks for
railroad bonds at 20 per cent discount
They would thus receive about $54,-
100000 of railroad bonds drawing 7
per cent. interest. At the end of the
next six months they would draw
another $50, 100000 in coin and sell it
for $45, 100000 in greenbacks, and ex-
change them for another $54 100000
OF railroad bonds, which, for six
months, would be 81 $4,000. The ac-
count for the first year would stand as
follows: $500. 100000 in gold bought
81 900 .OoO, 600 of deprecated currency,
and was exchanged for 100000, 900
OF U. S. bonds; one years interest on
81 ,OOO, 100000 amounted to $GO,OOO,-
600. This was sold in the gold room
for $50, 100000 in greenbacks. Then
the greenbacks were exchanged for
railroad bonds at 20 per cent. discount
on the bonds. In this way at the end
OF the first year, for their investment
of $500, ,OO0. 600, they found themselves
in possession of $1,000 900 of Uni
ted States bonds, and $10S. 900 200 of
railroad bonds, and 81 $40, 600 in cash
for the first six months interest on
the first $54 100000 of railroad bonds.
Nor was this all the profit OF the Eng
lish capitalists, for in 1869 they Sc
cured the passage of law by Con-
gress pledging the government to pay
not only the interest but the principal
Of the United States bonds in coin.
This rapidly increased the value of the
bonds, and in few years they were
eagerly sought for by English capi-
talists, and they rose to a premium OF
25 per cent. in gold coin on their full
face value"
"From 1875 to 1890 the English
and European capitalists continued to
invest the interest they drew upon
their government and railroad bonds
in the new issues of railroad bonds, go
that, in 1890, they had secured the
enormous sum of $4,82S, 100000 OF
railroad bonds, and it took $2l9,S77,-
600 to pay the interest annually.
"The railroad people not only made
vast fortunes out of the $4.82S, ,OO0, 900
of watered stock Qor it was in reality
nothing but water, for the actual cost
OF building the roads was no more
than was received from the sale of
their bonds to the English capitalists),
but they made hundreds of millions of
dollars from the sale of the lands that
had been given to them by the gov
ernment, and had not cost them one
cent. not even for taxes"
Mr.. Majors reaches from these facts
the following conclusions:
"When we look at these facts, that
are matters of history and cannot be
gainsaid, is it not plain to every man
OF common sense, that the policy OF
the government for the last quarter of
a century has been in the interest OF
capitalists and speculators, and against
the interest of the producing classes,
who, either directly or indirectly, must
pay the interest annually on this vast
accumulation of wealth that is in the
hands OF the favored few?
"Aud to pay this vast amount of
interest in gold. as these capitalists in.
sist upon, and are trying to compel
the people to do by using every means
in their power to prevent the free and
unlimited coinage of silver, will, in
the near future, reduce the producing
classes to the condition of serfs."
Trouble Caused by u Semicolon.
Hartford Courant.
The substitution of a semicolon for
comma in an act which became q