Weekly national intelligencer. [volume] (Washington [D.C.]) 1841-1869, 1852-09-18

THE CURRENCY IN cALIFoRFIA.
ron rHr NATIONAL IsrELLIoEsoER'

by that proceeding has virtually deprived Daiiofhia
as well as all our other Territories ON the Pacific, OF
all legal currency !,
;niurv has never been committed upon an entire
community by the National Legislature, than this
enactment, comprised in two lines has inflicted upon
the people of California igg
The Assay Office was created two years since, by
special act Of Congress, and is kind of semiohcal
establishment. The Assayer is appointed by the
Government, but the business of the Office is con-
Quoted for private accountable propretors furnish
ing all the needfu labor and machinery bearing all
the expense and receiving from the depostors Of gold
dust the compensation fixed by law. The issues are in
pieces Of fve en twenty, and fifty dollars EACH duly
impressed with the official stamp, and oil of them of
the full nominal value respectively and invariably pro-
ducng that value when reconed at the Mint of the
United States.
In the absence of the regular coin Of the United States
in California great Inconvenience and loss incurred
not only in all the mercantile and financial operations
but also in the small transactions Of domestic life and
when this Assay Office established under the express
authority Of Congress- the Treasury Department directed
the Collector at San Francisco to receive its issues in
Of all dues at the custom house. and this step at
gave to the whole Of that country safe and regular
gold currency The relief to the commercial community
was complete and satisfactory and gold dust Immediate
y advanced edolarper the miners could have
it assayed and coined the spot in pieces which passed
current their full value, instead Of being obliged to sell
it in the form Of dust for shipment to the Atlantic ports
All this convenience and these advantages however, are
at once destroyed by the recent action of Congress- and
the currency Of California is again thrown into the
chaotic state from which the establishment Of the Assay
Office redeemed it,
1t in vain say that these issues in consequence Of
their actual intrinsic value will pass heretofore at their
nominal amount facts speak to the contrary for there
are other private assay offices in San Francisco which
pieces of equal fneness and weight the United
States Office but whose issues have always been at large
discount below those of the official assay from the mere
fact that the latter received in payment of duties
which gave them general circulation and fixed value
The transactions of the country viii of still 60
on and they would go if there assay office
there and every body had to receive and pay for their
sales purchases in gold dust in its crude state and
each one have his own scales weigh it, from the great
est to the smallest quantity, the might be- But
in addition to the great inconvenience and uncertainty Of
this mode the miner would be heavy loser by the ope
ration as his crude dust would only be taken at de-
creased rate.
When the United States Assay Office burnt down in
the last great fire. gold dust Immediately fell than
one dollar per ounce, because there other
say Offices that could and did coin ingots equal neness
and value as the United States Office but because there
was cessation Of that description of coinage that
ceivabe par the custom and the value of gold
dust again to its former SCALE as the assay
Office rebuilt and again put into operation The pre-
sent enactment will have precisely the effect the
previous destruction ofthe assay Office by fire.
But there is another difficulty connected with the SUBJ
ect which resolves itself into the question how importers
viii be able to pay the duties foreign merchandise.
There has been object for any send coin there
from the Atlantic for in addition the heavy expense
for freight and insurance in getting itthera the exange
has always unavorabe it could not be returned
in bills except at loss Of three four per cent in the
premium paid for such bills in New York The supply
of con therefore which has reached that quarter has
been almost exclusively confined to what taken out
by passengers bear their personal expenses and even
this has been eagerly sought after and bought up for
shipment to China and elsewhere that this time
there probably in that country not enough Of American
coin and such foreign coin by law is legally recey
abe would be sufficient meet the amount of duties
collected in single month.
There appears to be but alternative for the i'm
porters and that is place all their goods in bonded
warehouses, which only be done at enormous
pense for storage and labor California rates, besides
losing the present sales Of their goods and wait until
they can import from the Atlantic the needfu amount Of
legal coin SO far as such coin may be scattered in small
parcels over the country it win Of be collected at
a high premium, probably eight ten per cent, for
the purpose paying duties but to have hatper cenage
added the regular duties will be any thing but agreeable
either TO the importers and besides it will
be impracticabe at any premium to find the needful
quantity to the purpose for the whole Of the large
importations Of San Francisco. -ss,.' ~
The annual production Of gold in California may be
safely estimated at g. 500 900 ounces and the inevitable
fall in its value Of at least dollar per in cose
quence of this action of Congress win nact loss that
many dollars, about 100000 per month, or $4,000
per day. upon the miners 1t will make glorious harvest
for the bankers and capitalists for II it continues but
six months IL win put at least two millions of dollars in
their pockets the expense Of the hard working portion
OF the population Of California The only remedy for the
evil will be by Congress Immediately retracng its steps
at the session and placing things upon their former
footing until the new mint goes into operation at San
Francisco In the time however It is possible that
the high premium which legal coin win doubtless command
San Francisco and the fall in the value Of gold dust
there, may induce capitalists this side to make ship
ments of coin as profitable banking operations but
this win lessen the evil to the people Of California for
the premium for which such coin viii sell there by the
decline in the value Of gold dust will still all come out Of
their pockets
II Is extremely difficult to assign any good reason or
motive for this adyised RASH and runous proceeding
the part Of Congress 1t is still difficult to un-
derstand how why the delegation from California in
both Houses gave it the support Of their votes, and did
not oppoge To the last extremity and point the