The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-01-27
ZEE PECULIAR CONDITION OF CALIFORNIA.



IN San Ffar cisco Terrible Excitement about the
Eimaniow Frauds-S,r Millions of Dollars at
sa1ke- n story of Lin anto,r- Conf sssons of his
Clerk The Mericon Government and French
Agents scid o. be Impiicated-History of the
Alleged Fuud-IEe Vslance COmmittee-Op.
Ios ition 10 tie Democraey-Pe Personalities of the'
San Francisco Press Testimonial! TO M. Dillon
late Freneh Con al.
The intelligence Nhich leaves California to-day ia
the most important and interesting that has ever
been bore from our shores since the accession of
California to the Union, not excepting the establish
mcnt of the Vigilance Committee in the month of
August lat. Then twas rebelion-now it is repu-
diatioD. We are hound to be an anomaly in the
family of States, and every day gives us greater
claims to the distinction. Our constitution restricts
the power OF the Legislature from contracting debts
$500 0o0 and when it is desired to increase this
amount for any purpose the question has to be sub
mitted to the people and their assent first received
Our present debt is over So 900 600, and by recent
decision Of the Supreme Court 50 700 900 OF this is
declared not TO be binding on the people. Full re-
ports of the decision and the comments of the press
will reach you by the mail which leaves to-day. In
this city, and all over the State the announce
ncnt was received with amazement, though it
ought TO have been preceived aad understood
years ago. The effect on California credit
out of this State will of course ba terrible. Stocks
win go down 20 the lowest point and foreign CAPT
talists will lose all confidence in cur stability. We
win nave to bear up the best we can agaost The
charges OF dishonesty which will, without doubt, be
heaped upon us, and even by some With belief that
we deserve all the hard things that c,n be said TO
our disadvantage. But when the whole question is
understood, and tbe intention Of the people known
these harsh opinions will assuredly be nodded
Though the decision of the Supreme Court virtu-
ally and actually repudia'es $27000O0 Of our State
debt yet the people and press Ct California are
unanimous in pronouncing for its payment ard as
sessment by the people. OF the newspapers OF the
State, all that have been heard from, with one ex-
ception advocate this courses and there is no dorbt
when the question before the people they will
respond with an almost universal voice IN favor Of
il We arc not Stpulous OF acquiring the bad name
earned by Mississippi, and with the immense
wealth which lies hid in mountains and along
cur water courses, we can well afford 10 pay
debts contracted in good faith The most
unfortunate part Of the matter a. that by const
tuition the subject cannot be submitted to the people
until next fall. Our constitution prevents earlier
appeal, and in the meantime the interest for The
first half of the year 1857 must renilin unpaid.
Some have complained that this point shoud have
been passed upon by the Supreme Court years ago;
but unless they made case for themselves III
voivipg tue question, it was impossible for them to
do so. Egen now II would no, have been decided
had not bill been passed at the last session OF the
Legislature appropriang si0o COO for the constrac
tion of wagon road which bill some citizens regard
ing % unconstitutional and sued out an Injunction 10
prevent the money from beisg paid ont of the trea
sury. Another act was passed nj the s.ssoa OF
1856 and sc to build a capitol, and appropriiting
$500 0o0 for that purpose. In the latter case a
contract vas entered into and q considerable part
of the work performed. OF course the decision
had the effect of stopping the contractor,
tor the same principle applied to it. IL is
asserted in some qualte that a. the present mo
neni California does not owe cen. for which she Is
legally liable. TIE frs. Legislature incurred deH
Of $500 0cc-,he constitu' ional linit-whieh dc5'
has b<ea paid; ard by tie late decision the whole
of the remaining deb, i declared unconstitutional.
This idea has but few supporters, for tie people ars
determined that every due Owed by them shall be
discharged TO the last farthing Il would be bad
policy foT parties holding California bonds - dis
pose OF than at s,ciia:e. No doubt some will AZ
tempt TO &c. oanic but the wisest course woaii
be 70 hold ca 10 the bonds for feF months utt'l
fuI, and ubinstskesbe expression of opinion Is ecit-
ed from our people TN the matter. II the press 10
any Indication OF their resolution TO assume ia pay
men, the response will be In the Affirmative.
Other decisions OF the Supreme Court give To the
city Of san Frrncisco several million dollars worth
Of prore.ty the sale Of which at nominal prices il
declared to re fiaudnieut and void. Tets viii be
good Iews t. holdsrs Of city bonds. large amount
of scrip clnimed u be good against our city Il
also declared to be iileg and Of no binding oie,t
Another event tia: has goie even farther in ava
kenipq public excitement sinco the departure OF the
last stssmer is the EXPLOSION OF the Limano1r al.
legged fraud. Tic fevelopcmsnts made afr his ia
sictmsn, by the United States Grant Jury, il tue,
disclose orc o. tie most sapenaous frauds ever at
tempted Linsn'our, In 1853, appeared la this city
M claimant for four e,gues Of land upon which the
most vessbie buildings hsj been erected, aud en-.
brscipg the most desirable land property IN San
Francisco. He rested his claims Mexican grants,
supported by otter positive test mony that appeared
10 b. conclusive a. his rights When this evidences
was submitted 70 the Board Of Land Commissioners
his claims was pronounced 70 be good. There was
tbus established basis for him 10 prosecute his
claims before The higher courts for confirmation Of
this decree. The lands assigned q LimaHto bg this
dscisioa embraced considerable more than opc-ts'rd
Of nc CITY, and rs present. assessed raius including
imy~ort msnis, ~ about sir million and half Of dol
liars. When II Is borne in nj that in Californ spec
uAtions in land has almos become passion. that men
hssc constantly invested their means al estate aud
that this practice Of the people been productive
cf immense wealth 70 some and has been ruinous 10
pHhers IL can he imapiped how great vxs the acnss