Weekly Trinity journal., 1857-10-10
Petty Capitalists in California.


talists. In speaking of this class Of men, we do
not intend to insnuate in any manner upon the
regular and legitimate Capitalists or respectable
Bankers, who are engaged in leaning money or
carrying on regular banking business The
class Of men last named are absolutely necessary
as an auxiliary aid to the development of the
permanent wealth Of the State. The pcrnicicus
class Of men to whom we particularly refer. is
that band of narrow. sknning, triGing, non.pro-
ducing ignorant, extremely selfish, petty tribe Of
Shylocks who infest every section, town and
county in the State of California They could
scarcely exist in any other country in the world
except in the capacity Of menials. Nearly every
crisis through which California has passed within
the last six years, has originated in the cxLorb-
tant transactions Of this class of men. Commerce
has experienced embarrsssmcnts which resulted
in hardship to the consumer The interior trade
has from time to time received checks which has
only had the effect Of raising the price Of bread
studs, and in fact all articles Of consumption.
The Importance Of agriculture has been great
ly lessonod, and its profits much reduced through
the high rates Of Interest charged on the money
which the farmer is necessarily compelled to hire
to carry on his farm. If an unpropitous season
should ovyrtale the agriculturalist, the conse
qucnce is the high price cf produce to the consul
mcr The Improvements Of towns and villages
have been delayed and stopped buildings have
been arrested in the course Of construction. The
opening and improvement Of public highways
and the great arteries of wealth and industry
mining canals -loN dormant and unproductivc
The process of iwpcyerisbing counties. and in
creasiug the heavy burden Of taxation on the gull
able masses has not tagged nor diminished the
graspins zeal Of The petty capitalists in the hast
Every instance Of the cXtortion Of such unusu-
ally high rates of interest on money. and the
many impositons which it bcgets, are alone in
the end found to result to the loss Of the hard
working man. 1t is only necessary now for
sharper to possess a capital of $1,000 in order to
quit hard labor, and become money lender or
merchant. We have seen hundreds Of instances
Of this kind in almost every County in the State
In very many cases the capital upon which this
shaving system Of speculation is carried on is
money borrowed from the hard working miner
and laborcr, without paying anything for its use.
The laJoring man in this case frequently becomes
the creditor of the petty money lender. through
desire to accommodate him, for the mere priyi-
lcgo of becoming bis debtor through the costs Of
Courts and litigation in getting back the amount
loaned
If there WAS a Usury law, well and clearly de-
fined in its provisions, establishing the rates Of
interest on money at IS per cent. per annum, it
would have better effect in stimulating tie solid
and permanent growth Of the country than any
act Of legislation which could be accomplished.
The highest rates Of interest paid in any one
Of the States is 10 per cent. per annum, but the
best security is that which is pledged for seven
per cent per annum. What must be the coase-
qucnce when 36 per cent, aud not unfrequently .
co per cent. per annum is cXacted on money? In I
almost every business town in Che mining regions .
properly of every kind has more or less Gct .
tous value, and in nearly every town property
has passed from the first hands into the mort
goseo's.
lhis state Of chaos and crisis, in nine cases out
Of ten, has been brought about Jy this bare
faced system Of extortion. aud high usury on mo-
ncy When property has been thrown upon the
hands Of mortgages, rent sufficiently high to
pay 3 per cent per month, or 36 per cent. PER
anuum must be had, or the property must be shut
up tenantlcss The sensible argument us by
the proprietors Of such property is 1T cost SO
much in the first place, and it must pay the usual
interest, or l shall keep it closed"
We very often small traders carrying on a
business without dollar Of their own This is .
another class which tend to keep up the price of
every species of provisions, as for instance a
man who intends to become merchant without
capital Of his own, goes 10 his friends in the
mines and borrows a certain amount Of money 10
buy goods with in San Francisco. lie buys and
pays what money he has, and secures an equal
amount upon a credit of ninety days. His heavy
freight bills to be paid when his goods arrive
and for this he must provide by borrowing ano-
thcr amount. Now between the two amounts
borrowed and the payment Of bis San Francisco
note, be is driven to the necessity of paying high
rates for money, and his borrowing and paying
such exorbitant rates Of interest makes it difficult
for others to secure it at less rates The capital
thus employed may be said to be producing moth
ing but an injury to the country.
The high rates Of interest paid to the miner for
his money. is one of the principal causes which
enhance the price Of everything he has to buy
for his own consumption. There is every induce
ment offered TO the miner who reflects upon the
safest mode of investing capital. Capital can
only be made productive and ultimately safe,
whereby its change of value is necessarily in
creased, and this can be best secured by invest
ing in what are known to be good and profitable
operations in the mines, whether it be in the man
ner of working them or in bringing water into
them. The mines beyond a question, are the
great staple producing fields, and those sections
of the State classed as the mineral sections afford
the only source of security which can be relied
upon without fear OF loss.
ATTEMpT AT BLACK MAIL-E l.. Brittngham