The sun. [volume] (New York [N.Y.]) 1833-1916, 1870-05-12
IS CALIFORNIA BANKRUPT?
WHAT MAS HAPPENED TO THE COL
---sDEN SrlTBs

ing hts own Words-rroject. Of the Bank.
Correspondence Of The sun.
SAN FnAscrsco, April 26.It has become so
fashionable TO pu and to exsggerate everything that
relates TO California, its people and Its products.
that one runs some risk Of being charged with cyn-
ieism II he attempts to tell the truth about them.
Ny last letter, published in the suS on nth Feb
ruarS, appears to have as,onished the natives who
reside on "a. Atlantic slope. well as those who
dwell here. The latter have not heard as much
truth apbut their financial affairs rs contained
in that letter since that excentr,c individual.
oIoRGs FRANCIS TRAIN
was here on ieeturing tour. With all his faults,
Trsiu bitIersst enemies give him credit for being
shrewd reader of man and profound nuancier.
That his incoherent discourses on the matter OF
finance interested the people, Is proven by tue fact
that for nearly six weeks he drew immense crowds
every nigh,-sucb crowds as no other man with any
OF Ter torie could styract within the walls OF
theatre The applause OF thes large audiences, their
cheers 10 favor OF the national currency, and gronns
and misses when the policy Of the Bank OF California
was explained proved that the statements made ny
the representatives OF the Pacific coast 10 Congress-
that they objected to the national currency, were
false. The press never dared to report Trains
speeches though they attracted more attention than
an tang that hsA occurred here Tor years.
now TIVE BANK CONTROLS rHs PRvss.
Il II necessary IN order to explain the servility OF
IN. local pres to the Bank Ring to state that, not
with.tandng the price of daily papers here Il fully
100 psr cent higher than III any other state In the
Union, there T. not among them that could exist
for siN months dependent on rs circulation. They
81 depend advertising. which the bank controls.
No merchant patfonizng paper that advocates the
adoption OF TIE national currency could expect ac-
eomnoja atoms at the bank. As that institution has
business Is knownto lie Executive Committee which
control the money. the politics. and trade Of the
cost, aud whiehiew business men care to offend.
rnE PEOPLE MADE TO SUFFER-.
gtecnbaos have been enormous, with a CORES pond
lug loss % the pcone " the State.
no Illustrate. In 1852 tatre were in this State
fully t2j,pD1Wn ia gold md silver coin At that
tue greenbacks sellin, nj thirty eight cents
toe dollar, and Government bonds AT city per cent.
oftheir I; &c IN TITS deprecated currency. Had the
Bank Ring permitted the Introduction OF green
backs at that time. California would have been one
pcops would have obtained tioOOCO.oD OF bonds
and currency for their gold. Tn bonds would have
doubled IN value anu paid liberal interest In the
mean time, while the currency would be worth
y 100 per cent more than Vt had cost. The selfish
| ness OF the Bank Ring blinded their eyes 10 the
honalfCs they are all broke. For there not $500
600 In eoiu IN the Nhole state to-day outside OF the
Federal Treasury, and all the so called "rich men
owe ten Il nes more t!an any OF them Can Day. TIE
Bark would be glad TO OJ;ain grconbacks to II
hon d siucton, but they are not to be lad. 1t
takes al most rs much gold 10 bus greenbaeks now
Ms their face c..l!s for. The cheap aud abundant
money at New York. and low rates OF freight by rail
road and steamers, ranidh dnisLing 10 the bank
Ing business here. Tie Eastern merchant can sell
his goods here at a handsome profit, when he Oh
tains Eastern Crcenbsck prices In gold; While the
locl trader bu! ing his goods for gold worth twelve
TO ihrty-six per cent interest cannot cover his ex.
p.nse, at lie $ margin than twenty Owe TO hi,y per
vita our trade Tie Bunk, by monopoiizing the
| money supply, has ruined the whole State.
| MONEY WORTH TWO TO rIvE PER CENT. MONTH
| There con be NO business man 80 ignorant OF the
laws OF trade not to have noted int there must
he something radically wrong IN tic affairs OF any
STATE In which the interest money live to SIX
times "a high a. It IL Ia other States. read in T mE
sUs tnat money is abundant At New York at 4 t. o
per cent. rail- In this state II cannot he obained
at less than IL from that To- GD Tnere must
he cause for such widc difference IN the vau. OF
money In the two leading cities OF nation ia in
| slant communication by telegraph, and only few
| days npart by rail. Tue Fundamental principle IN
| banking eNplaine this Cause. Whatever power, be
it a government. a corporation, or M individual.
the rate OF interest" The Bauk Ring here. through
eontrVliinS the currency by rejecting greehbscks
| keeps up the rate OF interest SO high thai every
branch OF business 4. plrayzed except that Of tie
usurer, who is literally sucking tie htcblood out Of
| the people OF this State. There are At this lime
1000 iaboring men out Of employment In CALIFORNIA;
| state in which labor h more valuable than any
wbero else, simply because tie Bink Of California
objects to greenbacks, and cannot obtlin sufficient
| gold TO Keep the wheels OF trade IN motion.
rnt PEOPLE DO NOT onJIcr TO GRsENBAcKs.
| II lisa SANDER upon the people of this State to
charge them with objeeiinS u receive Tteenbacks
They did pass current here for months til Rnston
S,ther and Davis. three btnkerS, collected $50 ON
10 h1be the state Legislature u prohibit them
W.
ssi,ED of this money, and els 90 70 George C. Cor
ham to lobby this bill thronsl he Legislature and
they DID tie work. though " he charged that stow,
pocEeted most OF The moncy Tnc effect Of tina
Specific Contract law" has been to drive gold out
q the State; and prevent greeubaeks coming in
| The hie gold We have II growing smaller by de
grees AMI beautifully less. Tue exports OF Thai
metal have exceeded the receipts nearly 1900, 90
In face OF such facts, which must DC known e
every representative from the Pacific coast In the
national councii., we Sci ators Stewart Nye
| COTbet. and Williams asserting that the people o
this coast OBJECT to tue nation currency. Inc
seaoOd OF gu Ia assertions l. demon, tratel by the
tue corruping Influence Of gOli to see senators dis
pie who elected them to power. 1t world seem tha
committees, prominent Federal onicils, eyen In
| NccPresident Of the Union comes and visits III,
palace Of the golden autOcri tilstoh. he fails
to convert tieui TO his unholy creed, and ihey al
fall down and worship the filthy image he has set up
Mr.. coLrAx suBputD.
| Mr. ColfI, on Lis 1rst visit TO this city in 1876,
made public speech In defence OF the national cur
rency, and predicted thew results that al C
the State through rejecting that currency. TIT
speech gave great offense TO the bank Ring aud the
did not notice him on lis arrival In 1863 To max
amends for having spoken thus in iSGi, In 1863 h
telegrsphed TO tile Secretary OF the Treasury {
grant layors to the very men who refused IN se
him I'LL he promised to perform this degrading
vice.
THE UNIVERSITY FUND.
To illustrate how the Bank Ring operates in thi
State, will call your attention 20 tie affairs OF til,
| State University. The Federal and State Govern
ments have been extremely liberal In granting Ian A.
for the support of institution. The sale of poi
,ions OF these lands plsc"i nearly s.O0OOO IA it
| treasury, This money Wa placed IN the custody .
the state Comptroller. The rus,ees oi the UniveI
| city include some Of our most extensive and III
, scrupnious land AMI STOCK speculrors. They up
G pointed RastOn, Of the Bnk OF California, and 5
y. Butterworth ~ an executive committee, with VI
>. | limited powers Tins committee took the funds ,
tie Unvcrlt, from the custod. OF the state, wher
@ il WAS Ieriecty safe, and placed II 10 the Bank !
, | California, wnere It ~ by no meane M safe. Ane
u accomplishing this neat little operation, Riston an
c | Buueru orth resL led, and OF course shook OF a
responsibility, So with everything else In whic
= there Is money. Every benevolent or other sociel
? las an agent OF the bank u manage its none
which Is OF course deposited with 1.-THE bank"
n SHORT OF BULLION.
- Prior to the changes in the mint effected by NJ
Cole when the ste tWcr- used To carry away Il
e bunk of the bullion, II WAS tue custom q; the ban k
. friends always 10 he short Of bars and coin
" steamer days. This forced depOs.toTs at the min
who were compelled to remit, to scll their cert
Gates of deposit at discount. So wien tue tel
e 'rnph the chief source Of news during the DAY
when cold In New York WIS constantly and violent
T. Infected b, victory or defeat Of tine Union armiC
"a the wires were always down about steamer day, az
A. a. I.a.y at.. Ill