Birmingham state herald. (Birmingham, Ala.) 1895-1897, 1896-08-08
SHIP VS., RAIL.
What the Gold Policy Is Doing-Its Logical
Ending is Bankruptcy
New York Financial News.

in the world, asking for advice, in a gem
eral way as to buying american rails"
which looked cheap and tempting.
The answer was given advising against
the purchase, and three reasons were
briefly given. The names of the parties
do not matter, however high. The rea-
sons speak for themselves and are capa-
BILE of verfcation or disproof We find
them too true.
First, the banker said that, as British
bottoms conducted most of the foreign
trade of the United States, shipping re-
turns showed growing distribution of
our exports among the various ports of
} the country, and this was against the
great railway systems which diverge
from New York to the interior-what we
would call the trunk lines" This is
true.
Second, that our carrying rates were
remarkably low and prices of all our
commodities were 1T the bottom, which
must lessen railway earnings in future.
This is true.
Thirdly, he called attention to the fact
that steamer carrying charges on wheat
between southern Russia and England
were down to SIX SHILLINGS PER
TON
These are plain, every day business
reasons that all can understand. There
is no dust for the eyes about the "silver
craze" no theories, no sophistries. Just
plain reasons that lie at the bottom of
prices and profits. In confirmation of
the last reason given, we cite the follow
ing from Beerbohm's London List:
There is an extraordinary depression
in freight rates just now, depression
which has not a little to do with the
weakness in wheat values. Steam tom
mage is continually growing in extent,
and nearly every new steamer built is
larger than it's predecessor. For in
stance, the William Storrs, capable of
carrying 5000 tons, or nearly 10000 quar-
tiers, has this week been berthed at Odes-
Sa to carry grain at the extraordinary
rate of IS. per ton Then we have steam
ers carrying wheat or seed from Calcutta
to Antwerp at Is. Cd. per ton. These
rates mean that between the Russian
farmer and the English miller there Is
only As. to IS. per quarter
Six shilllngs per ton means cents per
bushel, Odessa to Liverpool. odessa
compares with Chicago as the Russian
wheat port. -Four cents per bushel, chi
cago to Liverpool, lake, elevator, canal,
ocean carriage included, to say nothing
about rail rates. 1t is as impossible
as four mills! The man who
cannot see that this will stimulate wheat
growing in southern Russia-well, it Is
no use to talk to him. Seven shillings 3D.
per ton from Calcutta to Antwerp means
5 cents. From Kurrachee at the mouth
of the indus, still less. In nutshell, 1t
means that with steamers and one han
ding, distance don't count for much. On
our rail haul every mile counts
On the long haul the rail cannot com
pete with the ship. On double haul
and triple handling, still less.
These are low rates. But there Is no
assurance they are the lowest. On this
point we clip from the Glasgow Mail,
which, discussing British shipping
freghts for the past six months and the
unprecedented low rates, remarks that
oh In ic nae thTOUph
never before experienced by ship owners
and continues:
when the tide will turn is more than
we can say. 1t certainly will not be
neither this year nor next year. The
tonnage afoat in excess of shippers re-
quirements, as we have often said, must
be greatly reduced ere this can be
brought about, but the building gives no
hopes of this being done in the near flu
ture. Instead of reduction there is
steady increase month after month, and
so long as this continues it Is utterly
hopeless to look for any improvement.
Ship owners have the freight market
very much in their own hands, but unless
they grasp the situation very differently
| from what they have been doing they
cannot expect nor will they obtain any
! ameloration of the depressioN which has
sc long continued"
Those who have brought about this de-
preston do not desire to change 1t. 1t is
| eSSenUlal TO England III nef cOitliHeIclai
battle with the world to break down
prices in other countries. The cheaper
| the better. There is no bottom, If we
leave 1t to England.
| Her one weapon in breaking down
| prices is the gold standard. 1t has rob-
| bed all European countries and this
| country of much of the normal value of
| their products since 1873, which are now
| nearly half price on an average Euro
pean countries have drawbacks to the
| extent that they are creditor countries.
| England is chief as a creditor and has the
| carrying trade in addition. But even
| thar is not England's main reason.
England is a buyer, always a buyer.
| She raises nothing to sell in food, cotton,
wool or any raw materials save coal.
| She buys all OF the material her people
| work up, nearly all their food. Low and
| lower prices is her constant cry.
We are a selling country in food, cot
| ton and other material We need high
prices. Worse yet we are debtor coun-
| try, and unless we can get fair prices,
| ers, bankruptcy is inevitable. That
| England is for a gold standard is, in it,
SELF the best of reasons for us to be
| against it. 1t means robbery to all our
producers, inability to pay our debts.
We have had twenty-three years expe-
rience to prove what common sense
| would have proved without so costly a
| lesson. These little items on freights IL
| Illuminate the future and show the break
| in the track ahead of us.
| 1t is worth while to estimate what our
| decentralization of silver has cost us, just
| to see what it's reconciliation by free
| coinage will bring back.
| Taking our exports for 1895 and add
| ing to the prices we get the difference be-
| tween the sum received and what we
| would have got under prices Of 1873, we
are $780, 900 short. Take them as 8
| per cent of our total production. and we
| see what the policy costs us yearly. The
| heaviest years war expense, a third of a
| century ago, is a bagatelle in compare
| son. Fair prices for our exports alone,
| which we would have had with silver,
| would amount to more than the full par
value of all stocks. bonds and floating
| debts of our entire railway system,
| which stands for a bakers dozen of bill
| lions.
Fair prices on our total products would
have made our development twice what
| 1t is, our production double what 1t is,
| paid out of net earnings instead of for
| eign borrowings. Today we would be
| the richest and most prosperous people
| of history. Such securities as might be
outstanding would represent the savings
| of our producing classes instead of the
dangerous holdings of foreign creditors,