The morning call., 1890-12-10
THERE AND HERE.

The Eastern skies do not brighten. Money
has again loaned on the Stock Exchange at
quarter of one per cent for a single day,
and the epidemic of suspension seems not
to have abated. The Secretary OF the Treas
ury proposes to relieve the stringency in the
usual way by more purchases of bonds; but
as he observes that, in the past nineteen
months. he has poured out 500, 600, 600 in
excess of his receipts into the channels of
trade with no better result than the one
now before US, it is no matter Of wonder
that his announcement has not restored
confidence. The disease, in truth, has gone
too far to be allayed by such temporary de-
vices as the transfer of lew millions from
the Sub-Treasury to the banks.
The credit system of the East is breaking
dawn. 1t has been stimulated to extreme
proportions by variety of causes the work.
Ing of which was long ago detected by OBJ
servers. And now the day of reckoning has
come, and people who owe money are called
upon to pay. Many of them cannot do so.
That is all there is of it,
The hopes which are entertained that the
crisis will be ended by the receipt of gold
from London are fallacous. The gold
which is borrowed by the associated banks
will not enable man who has no money to
the banks in which it is lodged. 1t is merely
deposit, subject to call. 1t is a fresh liza
bility which the banks assume. 1t will not
warrant them in extending their discount
line while they are banking on clearing
house certificates. which have no value ex-
cept as between the banks themselves.
One Of the most curious and instructive
features of the present crisis is the muddle
into which the silver men have got. When
Congress passed the act requiring the Gov
eminent To buy pretty nearly all the silver
produced In the country owners of silver
mines congratulated themselves that they
were going to make fortunes. 1t certainly
looked SO when silver rose from 95 to 12O
But the advance was followed by reaction
which drove the price of the metal nea rly
back to the point from which it had star ted,
and spectators who had not had the wis
dom to sell out and keep out lost their win
nings. Meantime the rise in silver had led
to the re0pening of low-grade silver mines,
aud large sums of money were spent in de-
Velopment work and new plants When sill
yer fell all this work had to be stopped and
the miners were worse off than before.
This was not all. When silver was on the
up grade the miners shipped to the smelters
low grade ore which had been too poor to
pay the cost of reduction when silver was
80 aud 50. These ores the smelters bought.
paying for them at their assay value with
silver at ITO to 1l5. Thus. when silver fell
they found themselves in possession OF ores
which had cost them much above their
value. 1t has been injurious all round.
Meanwhile California pursues the even
tenor of its way undsturbed by failures and
with confidence unimpaired. We have been
able to spare to our Eastern friends a large
quantity Of gold. which has fortified the re-
serves OF the Eastern banks; and this we
have done without causing any money
strlngency here to embarrass merchants.
Both banks and merchants are easy and
comfortable. Our finances are on sound
basis. The deposits in our savings banks
during the eleven months ending November
30. 1880. increased in round figures $40 OOo.-
600. Each successive sale Of real estate on
the main thoroughfares shows full prices:
the market would be more active If there
were moro desirable lots offered for sale.
The crowds which are swarming in the
stores in quest Of holiday presents and
layishing twenty-dollar pieces on jewelry,
works Of art books and objects Of luxury
show that the savings of our people have
been large. There are no signs Of hard
times here. 1t i'll becomes US to boast when
our brethren in the East are preparing for
, q sad Christmas.