The sun. [volume] (New York [N.Y.]) 1833-1916, 1870-02-11


Correspondence Of The sun.
san FRANcisco, Jan. 3O.-0ur Constitution pro-
hbits banking but permits individuals or corpora
tions TO establish "placcs Of deposit for the safe
keeping Of money Tic consequence Of this clause
In the organic law OF the Stte has been the encour-
SEGMENT OF Of the grossesi imposltions on the
people. The houses OF Adams & Co., Page, Bacon 4
Co.. Palmer. Cook Co, and several others were such
places ofdeposit in which upward of ssOO10OO Of the
peoples money deposited, but not dollar OF
Which was ever recovered These firms all broke,
md not one ever paid dollar to Its creditors SO
notorious had become the dishonesty OF california
bankers' that nom 1854 TO 1868 many millions In
4, coin and dust" were buried" In preference to
TusuuE them to the "banks."
In Juy, 1857, savings and loan society was cs.
tablishcd In San Francisco since then nine others
have been established in that city, and as many
more in various parts of the State the combined
capital of the whole number not exceeding $4,000
THE BANK OF cALWoRsiA
was Organized with = capital-on paper-of S2oO0,
600 but the city assessment roll proves that rs man
ugers sworc to having capital Of only S60O0-o
The growth Of these savings banks and expansion
OF the power OF the Bank of California have been
the most disastrous circumstances in the financial
and general history Of the Pacific coast.
The power Of the " Bank Ring" TINS created,
has enabled to control the Legislatures and press
of nearly the whole coast and compelled both to
serve Its purpose OF initiating the value Of real es-
tate and speculative stocks. Capital by this means
las been exempted from taxation Ghc Tax Col
ectors report for 1859 shows that sigOso 7ts loaned
on mortgages paid no taNesl, while
BURDEN OF TAXATION
presses % heavily on every department OF trade and
productive Industry that manufacturers have never
fourished-coud not have existed for year but
for tue cheap labor OF the Chiresc--and business
Las been Gu, OF to great extent since the
completion OF the Pacific Railroad, by merchants
in the Atlantic States being able to undcrsell the
local merchants, through using cheaper money aud
paying less taxes.
1t lie one OF the most notorious facts connected
with this vicious system that the Executive Com.
mtee Of tho Board Of Directors Of the Bank OF
California are more fully
REPRESENTED IN THE NATIONAL COUNCILS
at Washington than hire the people OF ms
cosst. No aspirant for Congressional or Senatorial
honors hope for success in stat on this side
The Rocky Mountains, unless he makes friends and
gives pledges to the Bank Of California It IL no
secret in Nevada that Senators Stewart and Nye OF
that State had their seats In the United States Sen ate
purchased with money provided by the bank Tom
Fitch the COngrC ,sman rom that State, belongs to
in Virginia City Senators Williams and Corbett,
o. Oregon, are IN the service Of the bank Senator
tasserly, OF California, was the bank attorney FOR
many years PRIOR TO his election to the Senate, and
tti retains the same position. This gentleman :
FREE UsE or THE BANKS GOLD.
The Democracy never trusted him, and the Re.
rubcans dcspise him Senator Cole Of this state,
has gained the hostility Of this bank POWER by
7. fusihg to serve Its purposes. THIS gentleman =
rorsistng in demanding the removal OF certain on
GERS in the Branch Mint at san Francisco was TN
unpardr %. 10 offence, because IL broke up arrange
mcnts between the mint and the bank which were
very adyanaseous TO the latter Il IL only necessary
10 call atteAtol 20 single fact to demonstrate
"responsblc ,-rty," who acted as bookxeeper for
hi Irp IN Al he In o
time, which Mas
EXCEEDINGLY CONVENIENT
when 1t necessary to balance the accounts OF the
two departments Of the public service. Tie AR
rargcmout' would not have been exposed had not
the sub-TreaUrer collected the salary for two book.
keepers, while only one was employ a.. Mr.. Cole Is
charged vita beng The " conn 'l'ng the sab.
Treasurer to refund one Of those salaries; but she
The bauk, good d'sinterest,d people, Ray the FER.
encc Of the amount OF his salary cut ny an Admin
bank runs a refinery ON it, "own nook which i.
not profitable so long as the mint gives Satisfaction
Mr.. Coles interference. 10 make tie lo-set rem
ins bullion a tie mint very much larger than thcJ
were at the banks refinery. To carry cut this
NICE LITTLE ARRANGEMENT.
certain grains OF gold, rangin. In value from
Ievcnty-dye cents 10 one dollar each melting were
retained by the meltcr but under tie regime
are returned to the deposltor 10 whom they belong
the atm OF the bank being to monoponze the rein
ing business this coast and thus to be in poi
OF New York. Three different bins have been pre
scented 70 Congress, 10 carry out this nice little game
TO enter detail. Of the Injuries inflicted on tn,
people OF this state by the Bau~ Ring" the crea
ture Of our pcrnicoua financial system, would ex
tend this letter beyond reasonable uits. Its
ing infamy was It's
HOSTILITY To THB NATIONAL CURRENCY.
This one Circumstance 90 clearly illustrates n,
power and machintry of the " Bank Ring" Al,
lht elects Of our financial system that shall reie
TO " 1t some lcngth.
The fact that the people OF California gave nor,
money to The fund for the relief Of the soldiers snC
Other people in the nation l. proof Of the ioyst
OF their hearts. Yet at the time when they were
GIVING their money by tens OF thousands OF dollars
the press OF the state in the service OF the Banl
were stigmatiEng as dirty rags "yaluelcs
rency win which the heroes OF the Union and al
the ofhcers Of the Federal Government we're paiC
The Legislature,
UNDER rHs CONTROL OF TEE LOBBY
in the service Of the Bank, the leader Of wliol
VAS George 4. Gorlam, now Secretary OF IN
e sir,uaton d ne Ra Sy Currency R IN CAT
forna. This currency by Ills preaching, teach
Ing, and publishing against It, became 70 odou
that any one attempting to use II wa
e9s Ss . Spy s Il Ts rom qqS1 e to
brought the money here wticn he received for
.erylees 70 the naron, and The manuacturer who soil
here. and brought tue money for which be sold IN
goods and ATTEMPTED to use IL, had their names put
lshed In the papers a. portons
GUILTY OF AN INFAMOUS OUTRAGE
No paper politician could survive tie impu
tauon VI fayOring the adoption OF the nations
currency. Whoever had the temeriy TO say a wOr
IN favor OF this despised currency, ran the RS
Of personal violence as an abOltiOnst before IN
war would have done by giving uttorance to hi
opinions the subject OF slavery any the South
ern states, The Assistant Federal Treasurer Nh
esrlnan, In ls52 barely escaped with hts life. 10
speaking IN favor Of the adoption Of this currency
apublic meeting In the city Of san Francisco, con
yenrd by tue Bank Of California, to discuss Ia
question: The odium Of that act SIN cings TO tina
gentleman and Is nov urged against HE reappoint
meat 10 position VI c" &c filed for eight years I.
Federal
This moding Of public opinion by
CRUSHING OFT ALL OPPOSITION
has been the source OF immense gains TO III
"binkb Ring Us " enabled them to purchas
goods H. currency worth, for long tim e. less thai
MY cents ON the dollar and 10 sell these goods her
for gold With no manufactures IN progress among
6OlOUO prosperous, eXtrayagant people like these o
California, impOrtatOns exceeded t,0O0JOOO annu
ally. The prOuts TO the importers were fully Gfl,
per cent, Tins was the source Of the California
shoJdy," class whose extravaganza wthOu
taste lav shness without hberallty, aud vulgar ~