THE FARMER'S WAR AGAINST MONOPOLIES. 201 



with other people's money. In order to accomplish 

 this, they proceed to issue mortgage bonds for an amount 

 sufficient to pay the cost of construction, pledging the 

 lands given t<4 them by Congress as security. These 

 bonds are to be sold, and the road built with the money 

 thus received. 



The sale of the bonds is the only really difficult part 

 of the undertaking, and this is managed with consum- 

 mate ability. Arrangements are made with some promi- 

 nent banking-house in one of the principal cities of the 

 country for the sale of the bonds, a heavy premium 

 being paid to said house for its services in negotiating 

 the loan. Or it may be that the banker will advance 

 the company a certain sum for the commencement of 

 the work, and receive, as security, a sufficient number 

 of the bonds, which he is to sell at the highest price, 

 and at a large profit for himself. 



None of the great banking firms are able to hold 

 the securities thus placed in their hands, nor do they 

 take them for purposes of investment. They buy them 

 to sell again, or sell them on commission. The persons 

 who are expected to buy the bonds for investment are 

 private individuals, who take them as safe investments 

 paying a large interest ; and the difficulty of the whole 

 matter lies in persuading the public that the bonds are 

 a safe investment, and that the interest will be promptly 

 paid. That is the task of the banker. 



The process is as follows : The bonds are advertised 

 in the most prominent newspapers, and large sums are 

 thus expended which must be made good out of the 

 money paid by the unsuspecting public. The papers 

 advertising these bonds are often induced to recommend 

 them, or, in plainer words, to "puff" them in their edi- 



