Little Falls weekly transcript. (Little Falls, Morrison Co., Minn.) 1894-19??, 1896-07-24

COuAtry, as an lnulcdtNu ~ oHO"s
that we were great and could estab-
lish our own financial system tnde-
pendent OF other countries. This
country has had a wonderful devei-
Opment In railroad construction. IT
is well worth w lille, in view Of MT.
TOwne's argument, to consider how
these roads were built, and how
they possibly closely connect our
financial system with. other financial
systems. When q great railroad
project is considered the promoters
arrange to procure the immense
sums Of money needed to buy the
rails, ties and other material, pay
the army III lahOrers, equip the road.
etc. The men Interested put IN part
Of the money and then arrange to
borrow the balance on bonds. They,
OF course, borrow where money and
wealth has accumulated most large
~, und where it finds least local en-
pluvment. That is in England. Ger
many, France and Holland. While
there is. great wealth in the United
States, the owners of the wealth are
more apt to find local chance for in
vestment in paying enterprises than
the wealth owners Of Europe. Con-
sequently large loans can be oh
tanned at lower rates Of interest In
Europe than they can in the United
States. The American railroad
builder then sells his railroad bonds
in Europe, and secures the money
needed to complete his enterprise.
Gold III the standard money of Eu-
ropean nations. as it is Of the United
States. Colds obtained, and natur-
ally u gold bond ia, given. The
borrower, in receiving gold, could
not honestly ask that he he allowed
the option of paying in silver. In
fact a large bulk of the foreign debt
OF the people of this country is for
gold obtained to build railroads.
The interest az well as principal is
payable in gold. Now the railroads
must meet this annual interest in
gold. As it is now the railroads are
az g. rule not generally able to more
than pay their interest, their wages,
other expenses and bring fair re-
turn to the capital invested. If the
currency value of the money in use
is cut in two by making silver ut Is
to money standard, IL railroad
must use practically twice as many
dollars OF it's earnings. to procure
the gold to pay interest as it does
now. On mauy roads the interest
charge is nearly one-half of the entire
expenscs-at least over One-1Ourth.
If on a gold basis 1t takes One-half
the earnings to pay the interest, 1t
would take nearly all the earnings II
the earnings were In q money that
would buy only half as much gold.
What must the road do then to
escape bankruptcy? Can it decrease
the wages Of it's employees enough
to save itself from ruin? Can 1T in
crease it's rates for carrying freight
and passengers to such an extent as
to pay it's gold interest and pay it's
men good wages? The only solution
that does not provide for Il decrease
in wages or an increase in transport
tation charges is for the railroad to
repudiate it's debt to the foreign
loaner. No honest man can ask for
that and no law of the statute could
make 1t effectual. The bOndhOlder
would take the road, the men who
built it and invested some of their
own money init would lose it. Isn't
it plain that possibly the fact we
have SO many thousands of miles OF
railroad is one reason why we
should continue using the money
standard that all our interests are
existing under?' Even with this
standard, all railroads are not able
to pay what they owe. Railroads,
as well as individuals, have suffered
from the business depression that
followed the Demo cratic victory OF
1892, and some have failed. Some
individuals who borrow. money in
vest it in enterprises that do not
bring as good returns as were ex-
pected; so with railroads. But it is
not the proper place for this country
to change it's financial laws SO as to
make it harder for the railroads to
pay their interest, and harder for
any one to get more IN oney to estab-
lish new enterprises. The free silver
plan will insure disaster to many,
and brings promise of profit only to
the silver mine owners of the west.
st. Cloud Times: E. T. Davidson
went to Minneapolis this morning
for the purpose cf securing a large
tent. Unfortunately St.Cloud has no
hall that will seat more than 500 or