The Evening statesman. [volume] (Walla Walla, Wash.) 1903-1910, 1909-04-22
FOREIGN CAPITAL COMING.

The most convincing sign yet
vouchsafed to those who sit in the
watch towers that the nation is on
the high road to recovery from the
industrial depression which has
halted its prosperity for the last
is months, is that contained in the
newspapers the country over of for
eign capital coming in to aid in build
ing railroads in the United States.
These sia1s indicate tEat foreign
fnanciers are recovering their lost
confidence in American railway Sc
curities and stand ready to supply
sufficient funds to complete any new
enterprise that commends itself to
their Judgment. The underlying cause
of the financial stringency which al
most caused a terrible panic in Oc-
tober, 1907. was the loss Of confidence
in American securities on the part of
European investors which led to their
unloading rlore than $700000000 of
such securities on the American mar
kets during the Is months or more
prior to October 1907. Their alarm
was due partly to the passage of the
Hepburn rate bill giving the Interstate
commerce commission the power to fix
railway rates but still mere to the in
temperate language and vague threats
that accompanied the act. They had
no way of knowing how far the federal
government intended to go in it's as
sumption of control over the railroads,
although they appreciated the fact
that any attempt on the part of a
political commission to interfere with
the making of railway rates or to take
upon itself the duties which properly
belong to the railway administrative
departments, would inevitably cripple
the roads and lead to confusion and
disaster in which virtually all Ameri-
can industries must suffer in proper
tionate share. When the state legis-
iatures began to follow the lead of the
federal administration in findiscrim'
mate tinkering with the railway bust
ness, like school boys playing will
fire. the apprehensions of the foreign
investors were confirmed and the!
threw their holdings into the financia
market until ii could no longer stanC
the strain. and it's breaking threatened
the country with tremendous panic
which was prevented only by tn
patriotic action of few great fin
anciers, East and West, who came t
the rescue in the nick of time.
Now that the action of the court
in upholding the rights of the rail
roads, assuring them an equal meas
ure of justice and fair play with al
other property interests. has reas
sured these foreign investors and con
WINGED them that their investment
will be safe from demagoic assault:
they have Embossed their purse string
and are again wiling to help thi
country develop its unrivaled syster
of transportation facilities. Foreig
capital has alone made possible tn
wonderful achievements in railwa
construction in the past. and it will
absolutely Indispensable in buildin
new railroads and enabling ;he gres
railways already built to keep paC
with the rapid growth of this countr
Upwards of five billions of dollars al
needed to improve and equip the line
already built, and no one Is wis
enough to see into the future and ca
eaulate intelligently how much mo
will be needed for new roads to brir
the shipping facilities of the COUNT
up to the required standard-certail
iy many billions more. But INTEL
gent men do know that the capita
ISIS OF the Old World will be glad
furnish a / the money that may