People's party paper. [volume] (Atlanta, Ga.) 1891-1898, 1898-06-17

alike, the railroad will be built simply
by stimulating the productive abilities
of the nation into activity and build b.
the exercise of energies that would no
otherwise be exercised, the employ
ment of labor that would otherwise bs
idle.
"When the notes issued for this pur
pose are received by the government
either for taxes or dues or later in pay
ment for the transportation of freight
or passengers over the government
road" continued the wise man "they
will be effectually redeemed. But tc
cancel all sueh. notes when received il
payment of taxes would inevitably
cause a great hole in the public rev
enues. hole that would have to be
filed by new taxes. If this was done
it would amount to building the road
by general taxation. Again to cancel
all such notes when received for the
carriage Of freight or passengers by the
government road would, if large part
of the receipts were in such notes, en-
tail deficit in the operation of the
road, for about two-thirds of the re
ceipts Of railroads, on basis Of pres
emit average transportation rates, are
| absorbed to meet operating expenses
The other third remain as profits
Therefore the notes issued by the gov
eminent to pay for the construction Of
the road and received in payment fol-
transportation services cannot be can
celled in a ratio of more than one-third
of the notes received without causing
| a deficit which would have to be met
by general taxation. That portion OF
the notes received for transportation
that would be required to meet the
costs of transportation would have tc
be reissued when received, that portion
received as profits on transportation
might be cancelled. Therefore it shall
be provided that these notes shall be
receivable at their face value for al
taxes and public dues and government
railroad charges and when received for
taxes or public dues shall be reissued,
when received by the government road
such proportion shall be reissued as
will meet the costs Of operation, such
proportion as represents profits shall
bs retired Built and operated after
this manner the road will pay for itself
in 8 few years and at the end be the
property of the people. Built by Dor.
rowed money the people would pay fo1
it within few years bu. at the end il
would be the property of the cliques. u
So said the wise man to the agent OF
the foreign banking house who pro.
posed that in breaking the curse of the
railroad cliques the people should
shoulder the curse OF bonded slavery
So those. who, seeing the people bestir
themselves to throw off the curse oil
the railroad cliques, sought to cast over
them another curse were bafied. Sc
was the railroad built, SO were the rail
road notes issued, SO was life instilled
into all industry. employment given tc
labor, and prosperity reigned.
1t wss seen that as the road paid for
itself cut of profits and the notes issued
to pay for it's construction We're can,
celled, there would come contraction
falling prices, industrial stagnation,
unless such contraction was provided
against. This was done by providing
for the construction OF new public
works and the issue of new notes rs the
old were cancelled thus guarding
against contraction and providing for
D steady increase in the volume of cur
rency concurrently with the increase
Of trade and expansion of industry.
AS the old notes were paid off out OF
profits, transportation charges were
reduced to a point SO a. to yield d rev.
enue only equal to the costs of trans
portatioa. And this reduction was
very material, for as rates were re-
duced traffic Increased and the costs Of
transportation concurrently decreased,
for the larger the volume Of goods and
number of passengers transported the
less is the cost ton for ton and passeu-
ger for passenger. Besides, the vast
sums that had been exaetcd from ship
pers but that never found their way
iuto the treasures of the clique msn-
aged roads, being paid to the cliques
as rebates for favors granted at TIE
expense not of those granting the
tavors but of the investors in railroad
property, wera saved, So the cheap
ening of transportation resulting from
the construction and operation of rail-
roads by the government was very
great and the Interchange OF commodi-
ties, and hence diversifcation OF indus
tries, leading in turn to greatly in
creased productiveness OF labor was in
Gnitely encouraged.
But this was not the only benefit by
far that accrued to the people from
tins new policy, for this now policy
was the means of esta blishing an hon
ees monetary system. 1t was noted
that the increase in the volumne of
currency caused by paying out cur
rency on account of railroad construc.
ton caused greatly increased demand
for all lines of goods to spring up, 1t
was also noted that any contraction in
the volume of currency caused sshrink-
in this demand, q general fall in prices,
undermining of profits and shrinkage
Of business. And so WIS it noted that
that as the volume of currency was ex-
banded and greater emplovment offer.