The New Orleans bulletin. [volume] (New Orleans [La.]) 1874-1876, 1875-09-10
CALIFORNIA AND THE CURRENCY.

California has been terrible eyesore
the believers in san American system G
finance" The apparent prosperity of tina
State, the marvellous progress of its industry
the comparative freedom of its commerc
from disasters which have so prostrated tn
business of Eastern States, have supplied yer,
effective arguments to advocates of sount
currency. They have pointed to the fact tina
in California business and banking have beer
conducted wholly on gold basis and pros
perity unequaled by that of any other Stat
has resulted, as proof that honest currency
promotes healthy trade and profitable indus
try. But now California also has its grea
disaster. The rag-mCney theorists are in higt
glee. The event is to them proof tina
CONNIE rcial disasters are as frequent anG
severe IN hard money lands as where a cur
rency not redeemable in coin is in use; that
| the prosperity of California has not been due
to its sound currency, and that a credit
system, based upon redemption in coin, is
even more likely to run into reckless specu-
lation and consequent disaster, than one
based wholly on "the faith and resources of
the nation"
Absurd as those arguments are, we shall
hear them, and others even more absurd,
urged by every advocate Of an irredeemable
currency. Yet any man who has sense enough
to attend to his own affairs ought to see that
no form of currency prevents him from throw
ing away his money if he chooses. The best
and soundest currency can not prevent wan
ton and ruinous risks by reckless men. 1t
will not stop gambling any more than it will
stop theft
A sound currency, it is true, does not pro-
mote gambling as. an irredeemable currency
does. It does not educate men to a life of
constant venture and excitement. It does
not fnrca manila IN hanop,o in
of themselves. But neither does it eliminate
from human nature the fondness for hazard
or the hunger for great wealth gained without
long years of patient toll, economy and pru-
dence. Be the form of currency what it may,
there will always be gamblers in every COM
munity, just as there will always be thieves
The failure of the Bank of California was
caused by reckless speculation, and by
nothing else. No disorder of industry in the
Pacific States contributed to produce it. The
solid prosperity of those States is untouched.
Neither was this extraordinary failure precip-
itated by diminution in the productiveness
of mines-a cause of disorder to which all
mining countries are liable. 1t does not ap-
pear that there has been any decrease in the
yield of precious metals. The Central Pacific
in which the bank party had inter.
ests, has been doing a large and increasing
business.
1t seems impossible to conceive of failure
which would more forcibly illustrate the
truth that, with the best possible currency,
with the soundest condition OF trade, and the
utmost general prosperity, men can gamble
away their wealth if they please, just as they
IAN throw it away or destroy their own lives |
~ suicide, The bank party had taken all
sorts of risks. 1t had interests in railroads |
md grape distilleries. 1t had bought news
papers, and controlled political parties It
had built hotel costing five millions, and |
invested large sums in gigantic street specula- |
ions.
For years it has been involved in mining |
'entures and recently it had taken part in a |
nammoth telegraph enterprise AS if all |
hese did not involve risk enough, the same
,arty undertook to control the Bonanza
mines, and engaged in a struggle with the
powerful clique which those mines have made
rich The mad spirit in which
his fight was carried on is sufficiently shown
" the extraordinary prices 70 which Bonanza
tocks were pushed in the struggle for control.
What has the ruin of either party in such
attle to do with the currency question?
Be the currency what it may, the workman
Tho drinks away his earnings and the bust
ess man who CANDLES away his capital will
like come to grief. Be the currency what it
nay, varieties of human nature will still exist,
nd in every land will be found spendthrifts,
amblers and thieves. Their follies and
rimes will cause misery to one household or
lany, according to their circumstances,
neither the money they waste or steal be gold
+ paper. 1t would be just as rational to
rgue that sound currency was of no benefit
ecause 1t had not prevented drunkenness in
an Francisco or crime in Sacramento, as to
aim that it does no good because Ralston
as failed at last