By Lloyd J. Mercer
This can be a reprint of a formerly released e-book. It offers with the impact of nineteenth century railroad land supplies on monetary potency
Read Online or Download Railroads and Land Grant Policy. A Study in Government Intervention PDF
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Extra info for Railroads and Land Grant Policy. A Study in Government Intervention
Example text
6%. The year 1900 is used here b e c a u s e it is approximately the midpoint of the25 period included in land grant sales. 1 billion. In current dollars this is about $30 billion [see Raymond W. Goldsmith, "The Growth of Reproducible Wealth of the United States of America from 1805 to 1950," p . 310, in Income and Wealth of the United States: Trends and Structures (Cambridge: B o w e s & B o w e s , 1952), Simon Kuznets, e d . , for the estimate of the value of land (in 1929 dollars) and p. 324 for national wealth deflators to convert to current dollars].
Robert Edgar Riegel, The Story of Western Railroads ( N e w York: Macmillan, 1926), p. 43]. This, of course, is simply an educated guess and there are others who argue that no acceleration of construction occurred. 2 . Economic Issues in Railroad Land Grant Policy 29 railroad was beneficial for society, that is, economically rational, is accep20 tance of (failure to reject) hypotheses Bl and B2 on an ex post basis. We see from this survey that the best justification for subsidization of the land grant railroads remains the necessity for an offset for private evaluation of the riskiness or uncertainty involved in the projects.
9 1 , with regard to the operation of the pioneer railroads: "Our population would b e increased, our resources doubled, and the continent c o v e r e d with people and states from the Atlantic to the Pacific. Our wealth would be more than doubled; so would our products. " At the same time f e w doubted that these railroads would fail, in fact would not b e built for s o m e period of time, without the aid of the government. 2. Economic Issues in Railroad Land Grant Policy 27 that the rate of return on private investment in the railroads would be less than the market rate.