Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1863-11-04
Union Central Territorial Committee.
FINANCIAL PANICS.

1
ted as they are at the financial head
quarters OF the Pacific coast, have adyan-
tagcs for observing the condition and
operations of that money market, which
we of the interior have not, are prognosti-
eating not far-diStant crash similar to
that of 1855. The Ereniag Journal says /:
I've abhor anything like panic, and
would not, for the best block in the city,
he instrumental in creating anything like
distruSt or want of confidence among buSl-
ness men. Yet it is necessary to tell them
the truth. AL have perceived within
few weeks past, that there has been un-
usual Stringency, we call it, though COM
mcrcial reporters call it activity, in the
money market. Brokers have been call
ing in their loans, and people have been
cudgelling their brains to ascertain the
cause, but the solution has been far from
satisfactory. The payment of State and
Federal taxes has been suggested as the
cause While this is sufficient to account
for somewhat greater demand for money,
it bv no means accounts for the scarcity
of the article, or the unsupplied demand
for it. From superabundance, people
suddenly learn that there is an alarming
scarcity"
The rumored approaching dissolution of
coparrnership of the heavy firm of Dona-
hue, Ralston s Co., furnishes the text for
the Journal and other papers, from which
they enlarge at length upon the conduct
OF financial affairs generally, by capital
lists, bankers and brokers. They enter
into an examination for the causes Of the
constant fluctuation of the money market
and the present stringency," and failing
to find any satisfactory theory, they come
to the conclusion that there is something
rotten in Denmark" The Journal, speak
ing of the dissolution of the firm men
toned, and their calling in their loans
says:
They would hardly do this so early
was the dissolution to take place at so late
a day as July, unless a large amount OF
their capital was to be used for some other
purpose than strict banking business, or
unless they had become alarmed at the
reckless mining speculation their CUSTOM
ers were engaged in. But one thing Is
certain, between the action of the bankers
and the wild expenditure Of money In
stocks and assessments, hard times and
distress, if not panic and bankruptcy, are
at our very doors"
1t concludes its article by bidding its
readers to set their houses in order and
prepare for the coming storm.
The Spirit of the Times has very
lengthy article on the same subject. l
saws that "on the sailing of the last
steamer, we were on the eve Of a financial
crisis, equally as disastrous as that which
visited and impoverished the State in
lS55." The article is devoted to disqui-
sition upon the subject of the system OF
banking as conducted in, California, which
it denounces in the most unmeasured
terms reviewing the past experience OF
the people, and recommends legislation on
the subject to protect depoSitors. 1t
thinks that the true state of their capital
should be known, and. like banks else
where, they should be compelled to deposit
with the Comptroller of State an amount
in State or United States Bonds, or In
securities equally as valuable, and in &C
cordance with the capital upon which
they intend to transact business, so that in
the event of financial disaster, premedita-
ted or by accident, their customers would
not be robbed" 1t, too, like the Journal,
saws that the denowement iii calling IN the
loans due the banking firm we have allu-
ded to above, should be a sufficient war
ming to all those who are not too blind to
see, that financial storm is brewing, and
there is no telling at what moment it vii
burst.
This is a subject with which We makel
no pretensions to any great familiarity,
but we have most vivid recollection of
the crashing times of so, and most
wholesome dread of their repetition. II
the fears expressed are groundless, as we
earnestly hope they may proveto be, those
in whose power it is to show the fallacy
of such apprehensions, should do so, and
alay the anxiety which such rumors neces-
sarily excite in the public mind.