The record-union., 1893-02-09
THE PAwNBROKER SPIRIT OF
SAN FRANCISCO.


whereas, one Hellman opened subscrip-
ton books for the establishment of new
bank he found takers for stock to the
amount of 81, 1,250,OOO, and that in few
hours; and whereas, the San Francisco
and Salt Lake Railroad has found its sub
scription books still blank; now, there
fore, the people of San Francisco are not
enterprising. The bIackmailing organ's
complaint is just. Capital invested in a
bank is unenterprising capital. 1t is to
GO out only on absolute security that it
will come back. Enterprise means the
hazard of trade. 1t means to create COM
mercial activity. When man loans ST.
600 on real estate valued at S., 900, there is
no element of risk whatever in the trans
action. The man who borrows the 1000
may be enterprising, but the man who
loans it is simply Shylock. He belongs
to that element of commercial and finan-
cial transaction which would absorb
everything and create nothing. There
have been great bankers who welded
money, over which they exercised con-
troll In the interest of creating wealth, but
they do not reside in San Francisco.
There was only one set of railroad
builders in California and they resided in
Sacramento. They made their start here.
They got their ideas here. They resided
in an American community, with the
atmosphere of Americanism around them.
They opened subscription books in Sau
Francisco when the Central Pacific Rail-
road was first inaugurated. They found
no takers of stock. We have recently
heard from one who was present and an
eyewitness of the transaction the narra-
ton of story which illustrates the whole
situation. When the Central Pacific
Railroad was constructed as far as New
castle it was the common belief among
the merchants of California that the liv-
ing builders of that road were no longer
solvent. Meetings were being held by
these merchants to determine whether
they should extend them credit At this
period Governor Stanford, in the pres
ence of the witness who is our authority
for this statement, and for whose veracity
all men who know him will vouch, ap-
preached B. F. Hastings, the leading
banker of the State outside of San Fran
cisco, and implored Mr.. Hastings to take
stock in the enterprise of constructing
railway which would connect the Pacific
Coast with the great body of the Ameri-
can population. Mr.. Hastings replied
assuring Governor Stanford of his per-
sonal regard. but also informing him that
such proceeding would be fatal to his
reputation as banker. Governor STAN
ford then offered specifically that if the
leading tinanciers, business men, capital
lists and merchants of San Francisco and
Sacramento would take stock the control
and management of the entire enterprise
should be turned over to them. He
offered on behalf of himself and associ-
ates to abdicate the management in
favor of any who would be willing
to afford the necessary capital to
carry it through. Mr.. Hastings
then gave voice to the prevailing opinion
of the time. He said plainly and bluntly,
1.-The whole enterprise is a fool enter
prise, thoroughly impracticable." What
was regarded as practicable at the time
was cornering commodities. What was
regarded as practicable by the bankers
was the loaning of money at 1 and 2 per
cent. per month, because the loan was
perfectly secured at that rate. This old
spirit has never died out in San Fran
cisco. 1t is the pawn-shop spirit
We have said before, and we reiterate
defiantly-we are in favor of the con-
struction of more railroads connecting
California with the Eastern States. We
honor the men who gave US the railroad
we have, and especially do we honor the
pioneer railroad builders of the coast
They had the enterprise. the energy and
the sagacity to undertake work which
they carried through successfully. They
have been the victims of misrepresenta-
ton and abuse ever since in certain quar-
ters. but away down in the hearts of the
neople of California they have the first
place of honor as men of energy, of en-
terprise and brains. Under all the SEEM
ings of unpopularity, under all this dem
agogic pretense of opposition, the men
who projected and built the Central Pa
cific Railroad hold first place in the re-
snect and esteem OF the people of this
State. and are at the head OF the roll when
the names of her citizens, eminent for
enterprise and executive ability, are
called.
San Francisco can get the capital to es-
tablish banks, because there is no ele-
ment of risk in the loaning OF money lhe
payment of which is perfectly secureu'
but every interest in the interior requlr-
ing capital languishes for want OF III