Practical demonstrations in Great Britain led some observers to conclude that the railroad would soon introduce “a new era in the business and arrangements of Society.” Thus inspired, promoters of the first American rail ventures began to draw heavily, both for practical information and equipment, upon the resources of the British pioneers, whose response was magnificently cooperative.

As distrust of American investments lessened, conservative international brokers allowed themselves to be drawn into an economic orbit with ever-widening western limits. Short-term credits to support an active agency business in railroad construction materials led inevitably to longer term commitments. The merchant bankers supplied the facilities for transatlantic capital exchange and by absorbing the best rail and government issues helped create an American market for all grades of railroad securities.

River transport was for a time a critical link in the upper Mississippi Valley transportation system, bridging diminishing gaps in the railroad network and linking those river-axis trade centers through which were pouring the human and commodity tides of war and frontier development. Riverboat operations in such an environment offered limitless challenges to management and provided opportunities for both disaster and great profit.

British investors, whose support was of importance to American railroad development, fluctuated between enthusiasm and dismay. Low investment per mile, the performance of certain blue chip carriers, and the native growth potential all stimulated the vital flow of foreign capital. Rate wars, overcapitalization, stock price fluctuations, imprudent reorganizations, and low business morality had an inhibiting effect. In most cases American investments offered little opportunity to exert control. By the late 1890's, British investors had largely outgrown their enchantment with the American railroad bonanza.

The scope of our annual bibliography has been enlarged this year to provide more comprehensive coverage than was attempted in the original “Studies in Enterprise” and its 1958 Supplement. Although still limited geographically to America and Canada, this list now covers histories of industries, histories of specific corporate functions, episodes in the history of companies, and histories of trade associations and trade unions, as well as over-all histories of companies and biographies of businessmen.

Like the financial mart from which it derives its name, OVER THE COUNTER is designed for the types of exchanges not handled elsewhere. This feature has its origin in a demand among readers of business history for a place to compare ideas, voice comments on published articles and reviews, and publish research essays. Contributions are invited. The Editor and Advisory Board reserve the right to decide whether, on the basis of general interest, pertinence, and merit, such contributions will be published. OVER THE COUNTER will appear as often as the volume of contributions may dictate.