Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1880-01-24

lied the public, who, after the failure of
the Bank of California and the segregation
of the leading mines, had been strongly
disinclined to speculate freely. The ST.
ezra Nevada episode whetted the public
appetite, however, drew much boarded
money into stocks. and paved the
way for that crash which left the
public pockets and nerves equally
faccid and limp. At such a juncture
nothing could have prevented general
decline but the free investment of capital
in legitimate industries. The capital was
here, and the will to use it was not want
ing. But precisely at that moment the
demagogues who were seeking to crawl
into place and plumber by iattering the
ignorance and feeding the prejudices of
the masses. began their crusade against
capital, and all through the sum-
mer this fight was kept up with
ferocity and malignity almost incredi-
ble The result was what might have
been expected Capital withdrew into
hiding. Investment was suspended. No
man who had money dreamed of putting it
into productive enterprises in State
where thrift and industry were denounced
as crimes, and where it was seriously pro-
posed to put every prosperous man under
the harrow of taxation until his wealth
was dragged ont of him. When
the new Constitution was adopted
the alarm reached its climax. 1t
was useless to think of building up State
thus given over to ruin by its own people,
capitalists concluded, and accordingly
many of them began to wind up their
affairs, and prepare to leave California.
All through the year these agencies worked
together to produce the most depressed
and paralyzed condition ever known on
the Pacific Coast, and this in spite of a
good harvest, and an unusual European
demand for breadstuffs. The aggregate
amount of failures for the Pacific States
and Territories in 1879 was So, 1858, 358
The failures for the Eastern and Middle
States together were only S4l, 200. 000
though the proportion of people in bust
ness in these sections is as 3l2 in the
East to 30 ION this coast). If we COM
pare Pacific Coast business with Eastern we
find that 1879 was for these States a worse
IL
ample, III the latter year the failures at the
East We're l in SO, while in 1879 they were
in As here Canada alone can show a
greater depression than this, and her fail
ures last year were in 80. 1t remains to
inquire how the example of 1879 is to be
bettered on this coast. We have shown to
what extent our business men have it in
their own power to stimulate trade. They
must wake up to the fact that the days of
high prices have passed away, and that the
Chinese Wall between California and the
East can no longer be kept up. As regards
the mischievous effects of the new Consti-
tuition the remedy is less easily availa-
ble 1t lies in conservative legislation
and construction, and in the repeal of
whatever provisions are found to interfere
seriously with the progress and prosperity
of the State. The mining situation is the
only remaining factor of Importance, and
the indications are that this will in no long
time adjust itself. 1t is evident that pub
lie faith in the honestyo of Comstock manip-
ulations is dead, and that speculation hence
forth must be confined to game of ''dia-
''mond cut diamond" 1t is hardly possible
that the people can be again gulled as they
have been in the past, and if the other two
great factors are once brought under con-
troll stock gambling will probably not inter
| fere seriously with the restoration of better
| times.