The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1875-09-06

The statements that this great institution
repeated and are traced to such responsible
sources that we begin to think them worthy
of attention and perhaps entitled to credit.
If it be true that quite a number of its stock
holders are heavy millionnaires, ambitious ID
increase their wealth by developing the re-
sources of the Pacific slope, it is not easy to
see why they should lack either the ability
or the will to put the collapsed bank again
on its feet If it can maintain its former
connections and keep its hold on its GUS
toners, its corporate franchise is still worth
many millions, which the stockholders would
throw away by leaving the bank PROSTATE.
It's revival is necessary to their own personal
credit if they expect to remain in California
and continue to be looked up to as leaders in
the great local enterprises. OF their ability
to reinstate the fallen bank in public conf
dence there can be no doubt if their indi-
vidual property is as great as has been repre-
scented. If the depositors of the bank should
be paid or secured in full within short
period, they would be cured of their distrust
and continue to do business with the bank
as heretofore.
The advocates of sound currency would
rejoice to see the Bank of California revive
and give a splendid example of the recupera-
tive energy of q hard money institution II
would be gratifying contrast to the great
failures in the Eastern States. If California
has been favored by its proximity to the rich
est mines in the world, it has suffered, on the
other hand, from it's political and financial
relations with country which has democrat
lied gold. Gold has an irresistible tendency
to leave country which has banished it
from general circulation and California has
suffered drains to which it would not have
been subject if the currency of the whole
country had remained sound. Besides the
large amounts she has recently sent to the
Atlantic cities her banks have furnished the
means of buying up the whole wheat crop Oh
the Pacific States, whose harvest is little
earlier than ours. and whose grain specu-
lators were stimulated by the short crops in
several parts of Europe. The gold advanced
for this purpose will return to San Francisco
within short period and add to the prod
uct of the mines in making money plentiful.
In spite of this disadvantage of her connec-
ton with country which has driven coia
out of general circulation California will re.
tain her gold currency and profit by it as she
has from the beginning.
1t will be great triumph for the hard
money side in our politics if the Bank Of
California should pay all her depositors and
speedily resume. The attempts which are
so promptly made for it's rehabilitation show
that the sense of financial honor has not been
blunted in that gold-circulating community.
After great and disastrous failure the first
thing done by the suffering stockholders is to
make provision for the payment of their
creditors in full. A gold medium has not
the demoralizing effect which is exerted on a
community by a debased and fuctuating
currency with which men may cheat their
creditors with the sanction of law.