Butte record. (Bidwell, Butte County, Cal.) 1853-1858, 1857-03-28

There is hardly doubt, in our estimation,
but that the Supreme Court viii declare the
vote bv which the Convention bill passed the
Senate to be unconstitutional. Even if the
Court should not so decide, it would be bad
policy to permit the credit of the State to
lie under the stigma of reputation, until
revision of the Constitution can be effected.
1t would take at least two years to legalize
our Indebtedness in that manner, while it
may be effected in six months by submitting
it to vote of the people at the election in
September next 1t certainly is the duty Of
the legislature, regardless of the Conven-
ton question, to provide for the speedy
rangement of the States Indebtedness, in
order that our credit abroad may net be
furnished, and our progress at home arrest
ed by drawing capitalists from us If we
do this, of what benefit are the efforts of our
Senators to recover the civil fund, and main
tain our credit in the Atlantic States
Senator Gwin has introduced in the U. S.
Senate q bill for the recovery Of the ci>il
fund, with provisions to pay it to the hold
ers of California bonds, which have by the
Supreme Court been declared unconstitu-
tional. Let the Legislature second the eff
fort to redeem cur credit, by submitting the
question to the people at the next general
election, and the energies Of cur State viii
soon recover from the nightmare spell which
now impedes her progress.
The press of the Atlantic States. and Of
Europe, are not very choice in their language
when speaking of the credit of California,
and capitalists viii not be anxious to invest
in State, where credit is darkened by the
overhanging cloud of reputation The
London Times, which is par erceYeace the
organ and adviser Of the moneyed classes Of
England, recommends capitalists to be care
fu how they invest means in California Sc
curities. The following extract is from &
recent article in that paper;
In the present California clse it was re-
marked by the judges OF the Supreme Court
in rather peculiar phfaseology, that there
seemed for long time 9 to have been a
general disposition t. give the subject Of the
existing restriction the 90 by" Moreover,
the various constitutions are constantly
liable TO alteration AMI hence an edition
printed in one year may be essentially diff
ferent from that of the next. In future
therefore, ii viii be well for our people to
understand the risks Of this sort TO lie en-
countsred In dealing with State which
is able 10 borrow money through its execu-
tive and legislative bodies, and thea to fail
back on the clauses of constitution, they
are in The position Of persons making loans
to a corporation who entrust their common
seal to directors, managers and secretaries.
and who when these persons have borrowed
money for their benefit, can turn round and
say that under their deed Of settlement
they had no right to borrow shilling, and
that consequently they must decline to pay
There can. in short, be 20 safety for lenders
where anything exists that can override the
simple fact Of a loan having been made in
good faith under certain open and avowed
conditions within the cognisanco Of the whole
community. II even a vote Of the people be
obtained, how can reliance be felt that it
may net be upset by the plea that some Of
the legal forms for taking it were neglected !,
II, with a fall knowledge Of such risks. cap
italists choose to part with their money g,
there can be no objection.