The Nevada journal. [volume] (Nevada City, Calif.) 1851-18??, 1857-08-14
FRIDAY MORNING, AUG. 18th. 1857.
Ranking.


money and banking. To the views of
the writer we in the main agree. We
do not, however, believe the rates of in
terest should or can be regulated by
legislative enactments, though the prin-
ciple has been adopted in almost every
civilized country. The British Board
of Trade years ago presented combi-
nation of argument against the laws reg
ulating interest, which has not been
successfully controverted to this day,
nor in our judgment, can be. There
can be no substantial reason produced
why person should be restricted in
the use of his capital i'll one field and
not in another, if both are legitimate en-
terprises for capital to embark in. The
contrary is the practice, but theory at
least pronounces it wrong.
1t affords us qualification to see that
some interest is taken to better the
financial condition of the country, which
is so imperatively demanded. We are
not particularly partial to banks for the
emanation of paper money. if sufi-
cheney of specie can be had to meet the
necessities of trade But it is conceded
that the circulating medium of the coun-
try to-day is less than year ago and
still diminishing. There is a drainage
going on which all business men see
with alarm, and until some plan is pro-
posed for checking it to an extent to
meet the wants of the country, we have
no other alternative than to favor a cur
rency which has been found necessary
in every other State of the Union and
without which the nation would not
have grown to its present stature or
gained its unexampled prosperity.
California needs an antidote for her
many ills. Business is at stand still
and enterprize paralyzed for the want
of the stimulus, money. There is
enough coined gold and silver in the
country, it is true, if thrown into circu-
lation to push the State along in pros
perity, but there are no safe places of
deposite under existing laws, or the mi
ners fear banking institutions since their
sad experiences with Adams & Co., and
others. Whenever a dollar can be OBJ
tanned from the lender, so scarce is the
commodity in the market, the most ru-
inous interest is exacted. If by any
means money can be made plenty and
easy of access, rates of interest will be-
come lower and securities better, while
investments will be sought to make
more than the ruling per cent. of the
market. Thus the resources of the
country will become developed, and a
career of prosperity commence. 1t is a
universal law of money that, like water,
it seeks the lowest level. 1t will be found
to go from those countries where inter-
estis high and securities corresponding
It pOOI, W lHOSC COuulIlcS WucIC lulCT-
est is low and investments secure
Thus money will be found to have an
eastward tendency, to those States
where banks are numerous and paper
money in abundance. There are
substantial reasons why this should be
so. Banks require a specie basis and
therefore serve to keep money at home.
Banks are generally profitable institu-
tions and will therefore command spe-
Gle investments. Banks, by scattering
substitutes for money in large quantities
over the country, put the means in the
way of the enterprising for building up
manufactures which in their turn save
q to the country an expectation of specie
to pay for foreign fabrics. A people
can never prosper whose currency is
constantly depicting. Manufactures
languish and the arms of industry with
en- A nation can never be truly great
and independent which cannot live with
In itself. Those communities are the
most hourishing where agriculture, the
spindle, the loom and the anvil are
found together. But how are we to
open these other avenues to industry
and essential elements of prosperity in
California Capital, which we produce,
rushes to the east to enrich any body
but ourselves. 1t cannot be checked
for manufacturing purposes, or if it
could the rates of interest are so enor-
nous that no one would be found so
foolhardy as to attempt the establish
ment of any branch of industry with
such obstacles in the way. Thus are
we made dependent upon others, and
growing more and more SO as our money
orovs less and less We ask of the on