The Placer herald., 1867-02-09
Currency.

Although we have frequently in these col
upns stated the tact, it may not he out Of
place here to repeat that al financial trans
actions on this coast, unless specially stlpu-
lated to tho contrary between parties, are
conducted upon specie hasis-on which
also our monetary calculations, statistics, and
estimates ave founded. This circumstance j.
weil understood ty our own people, and
even 10y most intelligent persons abroad, yet
the latter are apt to overlook il, and, failing
to translate our figures into the currency
most IN use among themselves, fall into Sc
rious error, not only as regards our fiscal af
fairs; but also as relates to the value Of our
Improvements property, resources, exports
and in short all the elements of cur material
wealth. An exclusively metaiic currency
has obtained here frum the first settlement
Of tie country the Mexican dollar and Span
ish doubIoon constituting the priDci ral cir
cuIa,iug medium before the American occu.
patton Of California. Tie discovery Of gold
soon atter that event established this com
modify as the agent of exchange and standard
ot values, function it or its equivalent has
continued to exercise ever since. Indeed no
other could ave well been substituted in its
stead, the Constitution of the State prohibit
ing in the most positive terms all persons
and institutions from issuing any species Of
paper whatever to circulate here as money.
The introduction and use of tie National
currency is not, Of course, considered to be
in coutlavenli0n Of this clause of our State
Constjtuion, these notes, in the absence Of a
spt clic agreement, being recognized as legal
tenders to the same extent here rs elsewhere
these speriti agreements having amongst
us simply The force Of gold contracts in the
E4sleln States. Several efforts have been
luale to induce the Legislature Of this State
% rescind the Specific Contract Law, and
thereby open the way for the substitution Of
paper for specie currency, all of which
having failed, the people. who fully endorsed
this action Of their representatives., have
since evincol more hearty appreciation Of
its wisdom than found expression at that
time. The importance Of a. successful resist
ance to these measures being now universal
ly perceived ard generally acknowledged,
their further agitttion need scarcely he look!
ed for. 1t is greatly to the credit Of our
people that in all the ordinary transactions
OF business payment is made in coin, not be-
cause they are obliged so to pay after the
debt has once been contracted, but simply
because this being the general understanding
every person feels in honor bound 10 carry
it out in good faith. Even forced payments
are rarely sought to be satisfied by the tend
er of paper, unless the debtor considers there
are some features Of hardship in the case
juslifying such course.
But Notwithstanding the prevailing cur
rency consists Of gold and silver, legal tend
ers are used to some extent on THIS coast,
having been brought hero and paid out in
discharge of Government Obligations, on ac.
count OF mining interests sold to parties IN
the East, and perhaps also to some extent
on speculation, their price here as any ari'
Gle OF traffic generally being slightly in ex'
cess { t what it is in the Atlantic States
Prices CUrrcnt