The Nevada journal., 1857-11-06

Tie Financial Cris1s.-It has long
been evident that a financial crisis was
in store for our country. Its signs were
indelibly written on passing events. 1t
has come. Two weeks since the Allan
tie papers came with long list of hou-
ses broken or suspended. A steamer
has just arrived adding full two hun
dred names to the unlucky catalogue.
A revulsion such as the commercial
world has never witnessed now afflicts
our brethren East. Nor is its evil eff
fects confined to the Atlantic side. 1t
must strike commerce the world over
with a mildew blight. 1t cannot be
otherwise. California is bound to feel
it, not ee poignantly, as her sister States
from her peculiar position, but sensibly
and disastrously. The pressure East
had probably much to do with the as
signment Of an eminent banking ouse
in San Francisco Whatever may be
the future of the house of Sather &
Church, its recent suspension can have
no other than deleterious Influences
Confidence not fully recovered since the
failures of Adams & Co., Page, Bacon
& Co., is again shaken. Thousands
will hereafter dare not deposit their hard
earnings with self constituted bankers.
Capital will return to the ground to ben
eft none. Miners will bury their gold,
the currency of the country already too
limited for trade, will be contracted, and
hereafter we may expect a tightness IN
the money market, to which the present
time, cannot compare Credit must in
evitably receive check, and the cash
system be inaugurated. Our summers
are unproductive of gold. Our mer-
chants will not, for they cannot, wait as
they have done for the mining harvest.
Demands will come upon the merchants
of San Francisco from their brethren in
New York, which they must meet in
cash. Our country traders must furnish
it for they live at the fountains of mon
ey. Thus when the mines are unpro-
ductive, thier population must be drain
ed of the last dollar. Crashures are in
evitable. We have no money market
proper under the control of business
men to whom we can 60 in an emergen-
ey and raise a thousand dollars by pledg-
ing ten for one, To whom shall we 60
for kelp to save fortune on the brink
of destruction, placed there perhaps by
an unforeseen accident? Such is the
general distrust created by repeated
failures, that the producers of capital,
knowing nothing of securities and car
sng less, cannot be induced to part with
it at any price. Regardless only of the
consequences to themselves, and net to
sheir neighbors, they will grippe their
money in their own clutches. Thus bu-
siness must be paralized, and honorable
men despoiled by shylocks, lawyers and
officers of the law.
Experience teaches dear school,
but, it is said, fools will learn in no 9TH
or. We have been, at last taught by
experience, that men live possessed of
more money than honor or business ca
pacity, and very little of the first com
modify. These have the assurance to
open banking Institutions Fools rush
in where angels fear to tread" They
are perfectly Irresponsible No law pro-
tects the depositor. He becomes the
victim of misplaced confidence. The
man possessed of more brass than gold
and more impudence than honesty,
proves to be swindler, or a squirt vast
ing his little substance in riotous living.
Such is the repeated lesson. And yet
iocofocoism will never make an effort to
establish a safe system of banking by
law. 1t is the crying necessity of the
times. Safe places of deposit are indis-
pensible, and the State does not its du-
~ to its citizens if it does not grant
them protection.
During the coming session OF the leg
stature the State debt will probably be
established on a secure basis -Four
millions of State Bonds will make an ex-
eellent banking capital. Let the New
York banking law be enacted in this
State, and compel those who would be.
come bankers to deposit ample security
either in State Ronds or other safe pied
ges, with the State Controller, as guar
antees of good faith and snreties for the
aspositor. The reign of rassalitY vii
then soon end, so far as banking institu