Stop Speculating and Start Producing: A Railroad Baron's Warning to Seattle
Visiting railroad magnate Samuel Hill tells Seattle it has been living off borrowed money and real-estate dreams — and must get back to farming, dairying and manufacturing before the bubble bursts again.
"What you people need most of all to do is to become producers," remarked Mr. Samuel Hill, of Minneapolis, in an interview yesterday. Although this advice has become somewhat trite it cannot be too frequently repeated, and too much stress cannot be laid upon the necessity of following it.
No one fails to appreciate the marvelously varied and almost inexhaustible resources of this state. The thing to do is to make use of them. The lavishness of nature in supplying our people with the wherewithal to support themselves has been observed by every visitor who has made a study of our powers of production, and if there is one there are a hundred who have said we have but to develop our resources to make us one of the richest and most populous communities of the land.
Mr. Hill has observed closely the growth of Minnesota and other middle west states and been a witness of their development from dependent to self-supporting communities. What wonder, then, that he should be struck with the immense possibilities of the state of Washington and predict a great future if the country is settled up and the people educated to become producers and support themselves.
A few years ago the new comers from the East were flocking to our cities, buying land, platting town lots and living on the profits from real estate or money borrowed in expectation of the boom being eternal and everlasting. We imported eggs, poultry, butter and cheese. The most of our pork came from Iowa and we were actually buying fruit from California and Oregon. A great portion of our land remained untilled, and that which was utilized was devoted to a single crop, either wheat or hops. With opportunities for speedily doubling capital in speculation, small manufactories and trades were neglected. We were living off one another and producing little or nothing.
Hard times, however, have in a measure been productive of good results. People have scattered out into the country, wild speculation has ceased and there is an inclination to get down to legitimate business. No more frozen poultry from Dakota, and eat Washington eggs. Creameries are springing up all over the state and many a farmer has become, in the language of Mr. Hill, "a friend of the hog." One crop is no longer relied on. Diversified farming is becoming popular in the country, with the result that we are supplying many of our needs, keeping money at home which once went abroad and thus adding to the wealth of the people.
Mr. Hill, because of his railroad interests, naturally desires to see the country settle up and the people become producers. The one means passengers, the other freight. Apart from any railroad considerations, however, what he desires should be the desire of every one interested in the upbuilding of the state. We cannot live on borrowed money and pay interest on loans from abroad unless we produce something. With everything going out and nothing coming in, bankruptcy and collapse are ahead. But with the utilization of all our varied riches and resources there is no telling how great and strong and wealthy we can become.
Our lumber and coal will always be in demand, our fisheries should bring in millions, dairying is certain to become a great and flourishing industry, our arid land, with irrigation, will change into veritable gardens. We have at home manufacturing nearly all the raw materials known to civilized nations, and if, with ordinary good times, we do not in the near future become great producers and to a large degree self-supporting, then all signs, omens, dreams and predictions are unreliable and worth nothing.
“We cannot live on borrowed money and pay interest on loans from abroad unless we produce something. With everything going out and nothing coming in, bankruptcy and collapse are ahead.”
In 1895 Seattle was still shaking off the Panic of 1893, and the paper's answer was to stop flipping lots and start growing things. The same argument — that a city cannot live on real-estate speculation and imported goods forever — resurfaces every time Seattle's booms cool, from the aerospace busts of the 1970s to today's debates over whether tech wealth is a real economy or another bubble.
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