The Newberry herald and news. (Newberry, S.C.) 1884-1903, 1897-05-28

its parity with silver would be sub
stantially attained. With rising prices
The capital which is now bursting
the vaults of tho banks both in
Europe ana America would come
forth for Investment in business Oh.
terprises. This would give employ
ment to millions Of men who are
now idle, and they would have the
money with which to buy the ne.
cessaries Of life. An increase of
consumption means an increase of
business, including the transporta-
tion business. Now, capital hides |
in the dark for fear of being lost;
but it can be easily borrowed at two
and a-half per cent per year by any
who will give security of the value
of two or three to one Money lem
ders no longer expect to be paid
their principal. They grant exten-
sions as long rs the borrowers can
pay the interest. But as property
shrinks it will not yield sufficient re-
terms to pay interest, and will pass
into the hands of the creditors. This
:is constantly being done. The same
process is going on with the great
railroad properties. They never
pay any of their debts when they
mature They give new notes, just
as Wilkins Micawber did. Under tho
present conditions the railroads of
this country cannot, rs rule, earn
operating expenses and interest on
! their bonded indebtedness. Bond
holders are being satisfied at present
with reorganization plans, by which
they take the railroad property in
| payment Of the bonds and then issue
now bonds in lieu of tho old ones.
Tho holders of tho old bonds become
!, the holders of the now The Reor-
ganization Committees take good
| slico as commissions for their ser
/ vices, and then look for now game.
1t ls repetition of the old fable Of
the monkey, the cats and the cheese.
| Two cats divided between them a
ploce of cheese, and then quarreled
as to which had the larger piece.
They submitted the ,question to the
monkey as an arbitrator. Fiading
ono of the pieces heavier than the
other he bit some of it off. This
made it lighter than the other, and
he bit some off Of that. This pro-
cess went on and he was never able
| to get both pieces the same size. He
gradually ate both up in his endeavor
to do sc. The retired men of fortune
in Europe who have invested in
/ American railroad bonds, upon the
recommendation of the great banking
:, house, brokers, like j. p. Morgan 81
/ Co., and the Rothshilds are already
becoming restless under the "reor-
{ ganizat1ou" of companies in which
+ they Own bonds, and the sacrifice of
large mouthiuls of the railroad
\ cheese during th5 process Of reorgan-
\ ization The real interest Of the rail
road managers and the real interest
; of the bondiolders would best be
4 subserved by Il united effort in be-
half of the restoration Of iut ependent
bimetallism in the United States
| American railroad bonds in Europe
would be worth much moro in golc
than they are to day if it was certair
/ that the interest on them would b'
paid in full legal tender silver dol
| lars or SILVER certificates, AMI tina
our mint :. .ould be open to the tre
| and unlimited coinage CT silver
) The railroad managers arc afraid o
the great banking brokers, who ,hav'
thus far been able to build up or pui
down the credit Of great COY poration'
at their pleasure. They have th'
power to break away from thoir self
appointed taskmasters ar d deal witt
their creditors directly. The fore
closure of railroad mortgages woul'
prove losing business to bondhold
ers, and they know it. TO avoid
, they wi Il make fair terms, and con
sent to such scaling Of railroa
debts as would enable the roads t
pay int rest regularly on the reduce
indebte dness of the roads.
The only men who are benetitte
by the e old standard are those VIII
lend me mey for themselves or fc
others. Wo have just shown ths