The Evansville daily journal. [volume] (Evansville, Ia. [i.e. Ind.]) 1848-1862, 1855-03-26
CITY,0F EVANSVILLE.
MONDAY MoRNING:::.::;::MARcH 90,

MONDAY MORNING:::.:::::MARCH 20
Bankruptcy In California.
The past year has been the most remarka-
BILE of any on record, for failures in high pla'
ces. Among that class of operators Of ac-
knowIedged ability in all business transac-
tons, and of supposed unlimited Pecuniary
responsibility, the suspension mania has rag
ed the mere fearfully and fatally. The last
season opened, in the commercial and none
tary circles of the country, with some of the
most stupendous frauds ever perpetrated
on the public confidence. A system ofwhole-
sale swindling in public stocks and other
evidences of money, in which public conf
dence was largely pledged and deeply inter-
ested, was developed. which engendered
universal distrust throughout the whole
country, against the boundless issues of per-
sons and corporations, which had flooded the
channels of trade and formed no inconsider-
able portion, of the currency of the coun-
try.
This paper "dry rot" which first made its
appearance in railroad securities, soon COM
municated to corporations of every descrip.
ton, and public confidence was soon shaken
and finally withdrawn from every establish.
ment that was found gambling in this "drift''
upon the currency, the principal soundness
of which consisted in faithful "promise to
pay" with scarcely glimmer Of hope oil
ever being able to redeem.
The consequences are already too well
known, as scarcely an individual in the com.
munity, no matter how humble in life, but
b has experienced more on less Of the banefu
effects Of this leprosy upon our currency
The chief reason for the failure of so many
large houses and corporations, will be fount
p in the well known fact that the actual basi,
Of many leading banking houses consisted IL
p the cash deposites of the laboring and sub
stantial business portion Of community
while their own assets were wholly absorb et
in "faucies" and other "kiting" drift which
could only be made to float upon the foot
tide of business prosperity, in the absenc'
of "panics'' or any startling sensation il
public confidence.
That this state of affairs is veritabls
truth, was fully illustrated by the Withdrawal
Of the deposites Of custo mers(or such portions
portions thereof as they could get) and the
Statements Of assets by the bankers them
selves.
1t will be seen by late California advice'
that the same contagion is fearfully raging
on the shores of the Pacific. Several Of TIT
most extensive business houses have beer
compelled to suspend for the same reason
which crushed those iu the Atlantic States
The falling of the first brick has prostrate'
the.entirs row, from Boston to San Francis
co.
The people of California stand in bushes
relation to those of the Atlantic States
similar to that which is held by the latter t
the English and French. The Alta Califor
mia says they have sent away every dollar o
gold dust they could raise to pay for manu-
features and provisions produced in othe
countries-they have paid for what tbey
could, and, when cargo after cargo arrived
of which there was no possible need TO
twelve months, they have been bought uPo
a credit, and held by men who hired none
at three per cent. month to do business or
They bought them in hopes of. better time.
and those times never came. They gre'
worseand worse and men were straining ever
nerve to keep along when the news of tn
failure of Page & Bacon arrived. This in
telligence produced "panic", the onl
agent necessary to PROSTATE the whole finau
eial community, who had recklessly over
traded and parted with their coin for commo
dities which were not in demand, and fror
which money could not be realized at an
sacrifice. Bankruptcy followed this mod
Of doing business as certain as effect follow
cause, and the new State of California, wit
resources sufficient to make her independen
of the world, has fallen victim to the er
sors of trade, and has received a blow fror
WHOA 1t will take years of good insncierin
to recover. 49,
Cans Quite Come IL.
al 4; NJ. n. ,,,b