The Van Buren press., 1896-10-17
WILL CAPITAL COME?
How to Develop the Multiplied Re-
sources of Arkansas.
What Might he Done in our State II En-
efss, Capital and Enterprise We're
brought to Bear Upon the Ele-
ments Which Abound.

ments Which Abound.
Eastern people who come here are
amazed at the neglected opportunities
winch confront them on all sides. They
see forests of timber, splendid rivers
running to waste, and they hear of the
undeyeloped mineral wealth of Arkan-
sas and wonder why these advantages
are not improved, Their knowledge of
Inc resources of this region is superb
cal They see much and hear much,
yet they gain but a feeble idea of the
vast field of material wealth which lies
almost undisturbed within state limits.
The tourist who halls from state
where the hum OF industry resounds in
every valley and smoke stacks becloud
every city feel when they arrive here
as though they had been transported to
dream land. We must bear with them.
They are accustomed to different con-
dItlons and keenly sensible of what
might be done here if energy, CAPT.
tai and enterprise were brought
to bear upon the elements which
abound. The question is how
shall we proceed to establish mills
and industries and transform this
land into an industrial center?
There are two methods: a. Induce
capitalists to come; (2), borrow capital
and go to work ourselves. The growth
and development of the northwestern
states without borrowed capital would
have been impossible. Eastern capital
is one of the most essential as well as
one of the most beneticent conveniences
which new country can have access
to. 1t enables settlers to build roads,
found factories, purchase machinery
and operate their new farms The cap
italist expects interest annually, though
he cannot hope for an increase of his
capital, while the borrower, who takes
the risk Of success or failure, enjoys the
possible benefits of profits many times
larger than the interest charged. In
other words, the borrower is the specu-
lator as well as the beneficiary. Capt.
tai is abundant now and easily obtained
at low rate of interest on good secur-
ity, but men who invest money in man
ufacturing enterprises are inactive and
will so remain until business regains
its equilibrium. The outlook for enter
prises to materialize soon is not prom
ising one. The object of this article is
to stimulate discussion. The prospect
for the future is not unfavorable, as
there are no portents on the political
horizon to excite distrust, though the
timidity of capital will not cease
until the votes are counted and the re-
suit announced. Capital is satisfied
only with security-or rather Sc
cure security. 1t takes no chances.
At first thought this seems selfish in an
unnecessary degree. Let us. examine.
What is Capital?
The bulk of capital in this country,
that is to say, loanable capital, is con-
stituted of the savings of persons of
small or moderate means. Millionaires,
as rule, have no money to loan. 1t is
therefore readily understood why there
should be a mixture of enterprise and
caution in the me2ner in which these
savings are employed 1t is simply an
evidence of the business intelligence
which presides over the equally com
mon habits of industry and thrift Men
who by means of industry and thrift
have accumulated a small surplus feel
that their surplus, however small, is
safe only in the hands of prudent and
intelligent men who are backed with
security. With promise of a change
of values, capital quietly enfolds itself
like clam. When the door is closed
on capital, neither honied eloquence
nor threats of vengeance will cause it
to open. Confidence is the power which
wins capital. The present slackness
and hesitation on the part of investors
is ascribed to impaired confidence. 1t
is not necessary to discuss the point of
what caused confidence to become inn
naired. Wha, he reader is most inter-
ested in is the return of confidence and
an awakening of enterprise. Capital rep
resents the savings of past labor and IS
the means for employing future labor
We must have capital. For two years
mast eastern capital has been seeking
foreign outlets. There has been a
heavy shrinlsage of values since 1892.
Trade, as well as farming, has been
carried on at a smaller profit than ever
before. Both farmers and business
men who have kept even have done
we'll. Depreciation in stocks has cut
lown the surplus of spectators in that
field. A large majority of farmers and
business men are poorer to-day than
three years ago. There has been
horizontal reduction of property all
along the line. in which the millionaire
and the laboring man who has no capt.
tai but intelligence and muscle have
suffered in proportion. Economists and
axnerts in financial lore say the condi-
ton Of affairs is anomalous, though adj
hitting that the anomaly consists in an
abundance of unemployed money, with
factories suspended, millions of men
idle and business depressed. In a gov
eminent that has proved its stability
and its power, a nation peopled with
men of activity and energy, and with
an abundance of pent up capital beg
ging for employment, it is safe to say
tinidity cannot long rule. Business is
pausing in preparation for new adj
vance. An expansion of industry is
hound to follow the contraction which
set ir three years ago. Capitalists
know opportunities for safe and profit
a bIe Investment will soon occur, and
are eagerly waiting and watching for
them. Arkansas has reached point
at which capital has become a neces-
sity One new railroad calls for an
- ,,,-,so,tad M road 4baf