the method and means of doing business makes it possible that a less amount should come to perform the same service.

Again, whatever promotes or restricts the employment of the substitutes for money, such as bills of exchange, &c, of course promotes or restricts, other things being equal, the demand for money itself.

So, too, whatever increases or lessens the speed of communication between one place and another, may lessen or increase the amount of money requisite for the same business. For example, were a merchant in New York to buy goods in Canton to the amount of $100,000 per annum, and pay for them in specie, he would need for this trade, if he could get returns from China twice in the year, but $50,000 in specie at any one time; while, in case he has but one return per annum, he must send out the whole sum of $100,000 at once. Should he borrow the sum of money requisite in each case, at the rate of 6 per cent per annum, and repay the loan at each return from the sum he has realized during the six or twelve months' interval, he would pay yearly $6,000 interest in the latter case, and only $3,000 in the former. The advantage in the former case is, that the same amount of business may be carried on with a less capital; or more business with the same capital. The principle applies to cases on a smaller scale. "A nimble sixpence is better than a slow shilling." Thus, one of the important benefits which railroads and magnetic telegraphs confer on the community is, that they diminish the capital requisite for a certain amount of business.

It has been gravely maintained that the total amount of money, bills of exchange, and credit paper of every description, in any community, must always be equal to the total value of its commodities. Such a notion is ridiculous. As well might it be averred that the capacity of a wheel-barrow must be equal to the bulk of all the goods ever conveyed in it. Money, like the wheel-barrow, is but a medium of conveyance, and the same money may serve to convey consecutively many values equal to itself. Indeed, the supposition respecting the wheel-barrow would be less ridiculous than that to which I have referred concerning money; for in the former case, the wheelbarrow is compared only with the goods actually conveyed in it, while as to the latter, it must be observed that there is a vast amount of value in a country, with which money never has anything to do. Whatever may be the sum total of money in a country, it forms but a small proportion of the national wealth.

Money may be abundant, without any increase of the national wealth. There may be more pieces of the same, or even a less value. Even though there is really more value in gold and silver in any country, it is not certain that there must be, therefore, a proportionate increase of wealth. It is possible that the gold and silver may have been procured at the expense of other commodities. It is certainly true, however, that when, by what may be termed the natural course of things, money increases rapidly in amount in any country, without depreciating in value, we are justified in drawing favorable conclusions respecting that country's prosperity.

Men sometimes speak of a scarcity of money, when there is no real scarcity. We are apt to think that scarce which we cannot readily obtain. When credit is impaired from over trading, and men are reluctant to risk their money at loan, the cry is that money is scarce, when perhaps there may be as much money in the country as ever. It is at such times that specially high rates of interest are demanded. A real scarcity of money is but a slight evil, compared with this state of things. The chief effect of actual scarcity,

is to augment the value of each particular piece, thus tending to keep the entire value the same. Increase or diminution of the mere amount of money, in any country, other things remaining the same, is precisely analogous to the dilation or concentration of spirits.

Say compares money to the oil distributed among the wheels of complex machinery.* There is considerable justness in the comparison. Hume, however, had made it before him. When, as is sometimes the case, this oil is not properly distributed, there is a great deal of creaking and disorder in the machinery. Such is its usual operation, however, that probably no sensible man, now-a-days, would wish, with Pliny the Elder, to revert to the rude practice of barter, instead of purchase and sale. It is a profound remark of Montesquieu, respecting the usefulness of money in national commerce, that by its means commerce is carried on in proportion to the demands of the nation which wants most, while in barter it is carried on only to the extent of the demands of the nation which wants least, as otherwise the latter could not liquidate the account." The same is true, also, of individual trade.

66

Art. III. THE HUDSON RIVER RAILROAD:

A SKETCH OF ITS HISTORY, AND PROSPECTIVE INFLUENCE ON THE RAILWAY MOVEMENT.

IT has been justly said of the railway, that it marked "an epoch in the affairs of mankind." Since the experiment of the Rocket on the Liverpool and Manchester Railway, a totally new impulse has been given to improvements in the means of intercommunication. Numerous localities were readily found, well adapted to this new method, and railroads multiplied rapidly. They have gradually improved in stability of structure, ease of line and grade, and in the machinery they bear, producing greater speed, safety and comfort to the traveler. But high as they were held, for routes usually adopted, the idea that they could successfully compete with the steamers on the Hudson, was regarded in general as preposterous. In this view, the history of the Hudson River Railroad affords an interesting instance of the working of the public mind, on a project whose origin was marked by almost universal incredulity. In addition to the formidable competition of the river steamers, it had a rugged, difficult, and expensive line to execute; seen daily by thousands from the splendid steamers ploughing majestically the smooth, deep waters of the Hudson, they could only regard the Herculean labor of constructing a railroad on its margin, as a wild, visionary, and unpromising enterprise.

In 1842, citizens of Poughkeepsie, and other towns on the banks of the Hudson, employed Mr. R. P. Morgan, a civil engineer, to make surveys, with a view to ascertain the feasibility of the route along the Hudson River, for a railroad from New York to Albany. Mr. Morgan started from the

*Pol. Econ., Book I., c. 3.

Hume's Essay, Money.

Pliny, Hist. Nat., L. XXXIII., c. 8.

Esprit des Lois, L. XXII, c. 1.

Harlem Railroad, where it crossed the Harlem River, and followed the north bank of the river to its junction with the Hudson, thirteen miles north of the city of New York, and thence followed the eastern shore of the Hudson to Fishkill Landing, about forty-seven miles. From this point he diverged from the river, ascending to the general elevation of the table land, which he pursued to Kinderhook, and then descended to the river at Albany. He made a map and profile of the line, which he submitted, with a report and estimate of the cost of construction, all presenting a very favorable view of the project. With these, the friends of the measure went forward, to procure from the Legislature authority to construct the work. But the measure was regarded as chimerical, and an act of incorporation was refused.

At this time there was much anxiety for a railroad between New York and Albany, and many attempts were made to promote such a work; but it was generally supposed it must be made on an interior line, far removed from the river, that could support itself without reference to the river competition in the season of navigation; for it was believed by very few that the railroad could even transport passengers in competition with the steamboats on the Hudson. It was therefore thought, that to have the benefit of a railroad in the winter season, it must be carried so far back in its main line from the river, that it could do a summer business. In this view, a charter had been obtained about 1833, and a company organized to construct the railroad. This company did very little, and finally their rights were merged in the Harlem Railroad Company, or forfeited by neglect.

In the session of 1845, several gentlemen of the city of New York made application to the Legislature for a new charter, with the privilege of taking an inland or river route, as they might find expedient on full surveys of the same. They did not succeed in this application.

In the month of September, 1845, a convention assembled at Poughkeepsie, to consider the project of a railroad between New York and Albany along and near the bank of the Hudson. They appeared to regard Mr. Morgan's line as the basis of their action. Mr. Morgan, in his report, gave a very favorable account of his line along the table land, which, leaving the rugged shore of the river for more than eighty miles, no doubt had a large influence with many persons who regarded the river shore as very formidable for a railroad. Still there was not sufficient confidence in his survey and estimates to induce the commencement of any serious efforts towards its construction, without some further surveys, and the convention appointed a committee to procure a more full survey of the route between New York and Fishkill Landing.

A short time after the meeting of this convention, James Boorman, Esq., called on the writer, John B. Jervis, and requested him to make a survey, as above, and then to make a reconnoisance of Morgan's line from Fishkill Landing to Albany. Mr. Boorman stated that he was authorized to say that $1,500 would be raised to defray the expense. * This sum of $1,500 was small to make a survey, maps, estimates, and report, on such a line, sixty miles in extent; but, by allowing no compensation to the Principal, except in the event of a successful organization of the company, and employing some portion of the assistant engineers, who would be willing to engage

Subsequently the committee, composed of James Boorman, Saul Alley, and Myndert Van Schaick, Esqrs., had a meeting, (which the writer attended,) and decided to proceed with the survey.

on the basis of future employment, if the project should succeed, a party was organized, and kept in the field near two months; and a portion to make maps and calculations, some six weeks longer. The expense, including $142 for engraving and printing, was about $1,200; the remaining part of the $1,500 being appropriated to other objects in the prosecution of the project. With this slender means, a large amount of information was obtained, as to the character of the line, the difficulties, and the cost of construction. It did not admit, however, of a definite formation of plans, nor the labor of a thorough sounding of the bottoms of the numerous bays that were crossed by the line, and the sinking of trial shafts, to ascertain the character of the work. These were all necessary to a thorough estimate of the cost of construction; but the limited means were only sufficient to obtain approximate results. The result of this survey, and a reconnoisance of the line of Mr. Morgan, from Fishkill Landing to near Albany, together with remarks on the importance, the feasibility, and productiveness of the work when constructed, were presented in a report by the writer, and was read to a meeting assembled at the request of the committee in the University of New York, on the 23d of January, 1846. The meeting was called to order by Stephen Allen, Esq., and Mayor Havemyer appointed chairman. James Boorman, Esq., remarked on the history of the project, and the difficulties it had to encounter.

After the reading of the report, resolutions were offered by S. Alley, Esq., and Gen. James Tallmadge, strongly approbating the project, which were unanimously passed.

The meeting was highly respectable in point of numbers and character. The project was fairly laid before them, and all seemed anxious that the work should be done, and appeared to regard it as much wanted to promote the interests of the city. It was evident, however, that it lacked one element essential to such projects-that is, confidence in its ability to remunerate the outlay required. All were ready to speak favorably, but very few ready to take any pecuniary responsibility. In this state of the project, application was made to the Legislature for an act of incorporation, and memorials were circulated for signatures. Opposition to the measure soon manifested itself from various quarters, and little hope could be indulged of success without the personal attendance of some friend at the seat of government. On the 17th of February, the small number of friends to the project, who were disposed to contribute their attention, and give some direction to its interests, had a meeting for consultation. At this time they were composed of James Boorman, Stephen Allen, Saul Alley, Robert Kelly, James Hooker, and the writer. The main question discussed was, who /should proceed to Albany to prosecute the application for a charter. No one of the number was disposed to make this sacrifice; but finally the writer agreed to undertake the duty, and his associates agreed to pay $275 towards the necessary expenses. On the 20th, a memorial, reasoning the case, and urging the action of the Legislature, was signed by the above, and by James N. Wells, and P. A. Cowdry.

The opposition to the act of incorporation was mainly concentrated in the Harlem Company. They regarded the Hudson River project as adverse to their interests, and they made all the opposition they could to its success. Many of the land owners on the banks of the river, were violently hostile to the projected railway, and united their efforts to defeat it. Various reasons were urged; but the one that had the most influence was, that the granting

this charter would discourage capitalists from going forward with the Harlem Road, and that there was no reasonable probability the friends of the Hudson River line could obtain sufficient funds to construct it, even if they obtained an act of incorporation, and the granting them authority would only result in procrastinating the construction of a railroad on either route. Other parties were more or less active, as they regarded the project likely to interfere with their interests. After a struggle of nearly three months, the act of incorporation was passed, whereupon the friends of the enterprise were duly organized for the business of obtaining the necessary funds.

The great question was to obtain a subscription of $3,000,000 to the capital stock. To obtain the funds necessary for so great a work, in the face of strong opposition from adverse interests; with the public mind deeply impressed with the magnitude and difficulty of the undertaking, and, moreover, with the idea, that in the face of a competition with the most splendid steamers, on a navigation unsurpassed for their purpose, its traffic would not afford remuneration, was a task that few were willing to encounter. Competition with steamboat navigation was the peculiar feature in the traffic of the projected railroad; and this was an untried peculiarity. In the face of great discouragements, the Board of Commissioners had frequent meetings, and devoted much time in collecting information. On the 10th of June they published a prospectus, in which they set forth their views, and expressed the most entire confidence in the importance and productiveness of the proposed work. In September following, subscription books were opened; few, however, were obtained, except those of the Commissioners themselves. They continued to exert their efforts in every way that promised success; by the publication of short articles in the newspapers, and more systematic essays in pamphlets, taking subscriptions from individuals as they could be persuaded, and enlisting all to assist, that could be induced to aid, by their influence on others. The considerations of the importance of the project to the commercial and social interest of the city and State, were enforced with unwearied perseverance, until the population of the city and the river towns were aroused to a state of excitement greatly in contrast with the feeling that existed in the early history of their effort. The result was, the completion of a subscription of $3,000,000 to the capital stock of the company by the 1st of March, 1847, the day limited by the charter.

On the 4th of March, 1847, the company was organized by the following gentlemen, under the act of incorporation, as Directors, namely:-Stephen Allen, James Boorman, Saul Alley, William Chamberlain, Robert Kelly, Governeur Kemble, James N. Wells, Gardner G. Howland, James Hooker, Aaron Ward, Fortune C. White, Thomas Suffren, and the writer. William Chamberlain was elected President, and the writer, (John B. Jervis,) Chief Engineer.

Immediate steps were taken to proceed with surveys, and in two weeks a party of engineers and their assistants were in the field, and a few days later, two other parties were at work. The location of the line involved a large amount of labor. On one side lay the water, and on the other the bold and rugged banks of the river. The zig-zag line of the river shore rendered it necessary to carry the railroad across the bays, and through the projecting lands, in order to obtain a suitable line for the work. To do this in such a manner as to secure a good line at the least expense, involved extensive measurements and computations on very irregular ground, in order to determine what amount of cutting on the points would be sufficient to