The true Democrat., 1855-04-17
Great Financial Crisis.

Aho ouoPeliSloll Ol several or the leading Du- siness houses in San Francisco forms the princi- pal topic of discussion in our files The Alta California of February 26 says:
 The steamer which leaves this morning for Sun uan, will carry away the most disastrous news that has been borne from our shores for long, long tlme-not of property lost, ruined or despOled, but of great and overwhelming financial crash. This eventhas long been fore seen by observing men. It had been evident to them that the high rents and high rates of interest to which the people of California have long submitted must sooner or later end in ge- neral smash. The event had been precipitated by the news from the east; for, had no news vet arrived here of the failure of Psge & Bacon of St. Louls the business in this city had expe- nenced no material change up to this time
 "The people of California stand in business relation to thoseof the Atlantic States similar to that which Is held by the later toward the English and French. The people there account
 for their depression and distress by saying that they have overtraded-that they have bought more articles of foreign manufacture than they could pay for, and the consequence has been that they have gone on, getting deeper and dee- per in debt, till the credit has snapped, and ge- Helal DduhruplCV mas enSueQ.
 "The people of California have pursued the same course toward the Atlantic States that the latter have toward England and France They have sent away every dollar of gold they could raise to pay for manufactures and provisions produced in other countries. They have paid for what they could, and when cargo after cargo of merchandise has arrived hereof which there was no possible need for twelve months they have been bought up on credit, and held by inen who hired money at three per cent per month to do business on. They bought them Ill hopes of better times, but the better times never came. They grew worse and worse, and men were straining every nerve to keep along when the news of the failure of Page < Bacon arrived
 Had this news arrived at an earlier period 1t would not have affected the house of Page, Ba- con & Co.,, of San Francisco But this house had exert d itself of late to sustain the falling fortunes of the parent house at the east, and the news coming at this time, found it il-pre- pared to stand run. Page, Bacon & Co.,, of thh city, have always been entirely solvent, and we believe they are so at this day; but they cannot, after their efforts to sustain Page &5 Ba- con, pay off all their creditors in day. It is impossible for them at the present crisis to col lect in all or half that is due to them and which they may shortly collect; and hence it was ne- cessary for them to suspend operations and pro- vide some way fmutual accommodation. The report of the meeting of the creditors of this firm, which was held yesterday, will be found in another column. It will be seen from that that an excellent spirit of accommodation pre- vailed, and that their creditors have pleged themselves to mutual forbearance to that ex- tent which will enable the house to open again. it is said by Wednesday next
 :" In regard to the other houses that have sus- pended we have no opinion to express To the rumors about them which we hear upon the streets we attach no credence, and, indeed, we attach little credence to anything we hear ill re- lation to any of them. There has been so much deliberate, and as we believe, wilful deception practiced on the public and on the newspapers in regard to all of the late financial difficulties, that we can state nothing in regard to them on our own authority. It is said by the attorney of Wells, Fargo & Co.,, that they will resume business again in few days. We hope they will. The other houses that have suspended make fair promises. We have only to say we hope they will be fulfilled.
 "The news taken out by this steamer ought to teach the shippers of the east that there is a limit to the capacity of Californians, and that, though we consume much and pay for much, yet we cannot sustain the whole United States in their extravaganza for all time, unless they buy less and produce more."