The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1855-04-05

The 0swego journal learns through private channels
that the weand Canal viii be opened for the passage
Of vessels the 10th April Such Ia the intention Of
the officers having charge Of the canal
The position Of financial affairs in California is cal
suated cast gloom and depression the community
Tie failure Ct banking houses whose sole bust
ssss was buying and ,eing gold dust, is enigma be-
yopd comprehension. How such result could have
realized in country producing nothing but gold is
Of those wonderful Inconsistencies which re
.ueny met with. These banking houses received gold
rom the miners and other residents in California, for
which they gave drafts payable in Now York at sight
This business, properly conducted, would have proved
profitable but 1t cond uced resulted in the ruin
Of those who had ben long engaged In it. When
bank or banking house commences business upon a
stipulated capital the community believe that the CAPT
tai named viii be employed exclusively in prosecuting
that business and credit the accordingly but
when appears that the capital has from the hrst been
merely nominal or II actually paid in has been appro
prated purposes entirely foreign to those Of lssit
mate character ruin and disgrace to fall upon
these practising the deception Such has evidently
the in California. We find in the schedules of the
suspended houses Of San Francisco assets OF the mos.
sosbful character while the best OF nature most
dhienlt TO realize at great sacrifices. We find
what little capital some OF them orginalypossessed,
invested in ranches CATTLE horses furniture, instead
o. hDg available IN hand, TO meet any contingency. We
tpo houses doing business solely upon the credit Of
being rieh, upon the prestige OF name, which has By
srsrgy, industry and iudomtable perseverance,, been
raised 10 the highest pinnacle OF prosperity. We dnd
entire community deceived by false representations
and false lights, and the result easily be imagined
The effect Of these explosions and Developments upon
the credit system OF California will ultimately be Of the
most wholesome character, but Immediately II will be
just the will not interfere with the product
- the precious tall but II will Interrupt It's circua
1ien and distribution and for time paralyse trade II
win cause the failure Of OF mercantile houses
and react dsastrouay upon those in the Atlantic cities
ssgared in the commerce OF California When we see
fueh collapses In gold country, where paper eur
,ency exists but such as individuals put forth, it
should not be surprising that those sections OF the
Un!on overrup with banking Institutions, chartered
jer the cole purpose Of manufacturing paper money,
rheuld be subject to periodical revulsons az severe
and distressing as the expansion had been on
lie other extreme The community must a
natural consequence pass through these commissions,
Jor the purpose OF removing the evils which few years
ar prosperity and expansion invariably produce. We
10 way 70 avoid those coapse, rather do not
spy possibility OF preventing them. The system OF
finance under which the country moves has been 20
lcpq In operation and become firmly fxed that We
have no other alternative, and must make up our nds
abat the reyulsions are a part OF the mschius
rurrg the prcgrefs of tie revolutionary war, the
.ountry was without any ,ystem Of fnan:e or com
and az the conclusion Of that struggle the govern
u,,pt var In a deplorAbIe state Of blokrup.sy. The
VII eb formed the constitution therefore
AND vah sa,ecAteg Of the hsrd morsy sys.en, sra