The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1896-07-31
eoLpBuG IGNORANCE

by the goldbugs of the east to the west,
on the presumption that the west IA
vors silver only because it desires to
pay off its debts with cheap or depre-
ciated money. So we hear the cry of
Republication" by the east The charge
is slanderous. The west is at least
as honest as the east. That may not
be saying much, but it is certainly suS-
ceptible of proof. What the west has
in the way of holdings were acquired
on a silver basis. What they now own
| is valued at a gold basis, or at about
one half what it cost. In other words
nothing that we possess will sell for
over one-half what it cost. This is
true of every conceivable species of
property, as it is true that the debts
we contracted have TO be settled upon
different basis than that which was
expected, a gold basis, in which the
single dollar has become a two-dollar
dollar But there is Reputation and,
Reputation. The railroads Of this
country, which were built on a silver
basis, and at twice the cost at which
the same roads could be constructed
today, being forced to gold basis, are
in trouble. just as every other debtor
is. They can't pay their ''appreciated'
interest, simply because such interest
represents twice the real value it did
formerly But Of course a railway
corporation wouldn't be guilty of re-
pudiation. Oh, no. the security hold
ers wouldn't listen to so dishonest and
high-handed a proposition. They don't
''repudiate," but they clay down" and
call for receiyership, then follows a
reorganization in which stockhold-
ers are robbed and bond-holders are
forced to scale down their securities to
the tune of millions Of dollars. Mind
you, this is not "repudiation, it's only |
reorganization. If a city, county, J
state or individual should get down to |
cash sustaining basis by any such |
reorganization" process they would |
be held to be regulators and swim |
The eighth statistical report Of the !
interstate commerce commission, for |
the year ending June Both, is out. Ref
erence is made to the effect of the con-
tinued business depression and to the
large number of receivers appointed.
1t all comes of trying TO squeeze down
from q silver basis TO gold basis.
The report goes on to say that on June :
80, 1895, 169 roads, operating 1880
miles, were reported in the hands of
receivers showing net decrease of
twenty three roads and 2,963 miles
Of line The railway capital repre-
sented by these roads was nearly 81
800. 100000, or about 22.2 per cent of
the total railway capital in the United
States
The amount of railway capital on
June 4, 1895, was $10,9S5, 203, 12o, or
s63, $50 per mile of line, an increase
Turing the year of SIS, 729,312. OF
he capital stock outstanding. 81, 169,-
III, 17S was owned by the railroad cor
|
ponds outstanding: stock TO the
amount of SIS, 475, $40, 203 paying no
dividend, and 1904, 436, 200 of funded
lebt, exclusive of equipment trust OBJ
igations, paying no interest during
he year.
Comment IS unnecessary, but some
lay the security-hOlderS, the stock
FOLDERS and the arrangements of these
cads, alike. will all wake up to the
act that an average capitalization of
IS. $50 per mile. cannot be maintain
d on gold basis, any more than can
he debt ever be discharged on such a
,asis, let alone dividends for the stock =.
0lders.
What is wanted is a campaign of
ducation in the east, especially among
and Security-holders. It's
condition and pot theory, but we
ear nothing but of theoriZing among
hese people. They glance at the totals
f some statistical array of tabulated
CURES and mentally respond with @
that's So" when the fact remains that !:
or plausible lying nothing in this
Torld equals skillfully arrayed figures.
is not denied that for that creditor :
Tho is sure of getting in full the :,
cures nominated in his bond, the gold
tandard is an advantage not TO be :.
yncred; but for every other class Of :
reditors, stockholders and property :,
wners, the gold standard is simply a
lonstrous metal press with an Archi- I
ledian lever which Will reduce them :,
II fully one-half