70 



THE TRANSPORTATM QUESTIOi^. 



In the last monthly report we drew attention to the condition of the English 

 markets, to the enormous imports, and the continued decrease of exports of 

 produce, on account of the want of English demand for them, except cotton, at 

 prevailiiig prices. Our general tables, showing the returns to this department 

 of the prices in the several States, exhibited the great decrease in them between 

 January 1, 1865, and January 1, 186G. Yet, in the face of these decreased^ 

 prices, the market for western breadstuffs is almost nominal ; but little of the 

 great crops of the west seem to be really wanted. We also showed that under 

 these conditions of our import and export trade, our specie M'as rapidly leaving 

 this country, when a return to specie payments demanded its retention, and 

 that our national bonds, instead of continuing to be a domestic debt, retaining 

 the interest among us, was fast becoming a foreign debt, which would here- 

 after act as a constant drain of our specie. 



We then called public attention to these facts chiefly for the purpose of 

 awakening an interest in Avhat western writers call " the transportation ques- 

 tion," the absolute necessity of providing for cheapened freights between the 

 western States and the eastern seaboard. Corn, now selling in New York at 

 eighty cents per bushel, is used as fuel in Illinois. Throughout the west meet- 

 ings and conventions are held asking- Congress for aid in constructing a ship- 

 canal around the Falls of Niagara, in order that western products may have a 

 cheap and adequate water transportation to the seaboard by the St. Lawrence, 

 as well as by the New York canals, and that this competition might serve to 

 reduce the freights by railroads, which are alleged to be oppressive exactions. 



It is not our purpose to examine how far these complaints against the rail- 

 roads are just. It is sufficient for us to know that the vast products of the west 

 demand greater transportation, and it is only by providing it that monopolies 

 can be restrained. 



The leading work for which the aid of the general government is invoked is 

 the canal connecting Lake Erie and Lake Ontario. The latter lake approaches 

 much nearer to the Hudson river than the former, and would bring that river 

 and its tributary railroads in direct competition with the New York Central 

 railroad and canal. This competition would effect much in removing the 

 monopoly now complained of. Besides this great benefit in cheapening the 

 agricultural products to the east, and enhancing their price in the west, the con- 

 struction of the canal around the Falls of Niagara would open the way to a 

 complete ship transportation of western products from Chicago to Liverpool. 

 The cost of this canal is estimated at from six to eight million dollars, a sum 

 great in the present indebted condition of the country, but not to be so regarded 

 in view of the national benefits it would accomplish. 



But besides the work proposed, it is suggested that the excessive charges for 

 freights should be prevented by law. We have little confidence in such legis- 

 lation, for restraining acts of this character are soon got rid of by subsequent 

 legislation, or by evasion. But Congress does owe it to our vast inland com- 

 merce that it should be protected from a monopoly now oppressing both travel 

 and transportation. We refer to such as exist in New Jersey, where by force of 

 State legislation competing roads are forbidden to be made, and thus a n.onapoly 

 is created. 



In our judgment, the construction of all kinds of transportation facilities should 

 be as free as the building of a manufactory, or a steam or sailing vessel. Neither 

 New Jersey nor any other State has a right to say to its own or any other por- 

 tion of the people of the United States, you shall not construct a railway or a 

 canal within the limits of this State unless by special permission granted you 

 by a legislative charter. No State has a right to thus control the commerce of 



