The morning call., 1894-12-31
BLEEDING CALIFORNIA.
DECEMBER, 1894

One of the facilitating influences Cali
fornia has had to endure is the movement
of its successful citizens to financial and
social centers. No other State has sent
SO much money TO New YORK as Cali
fornia, for the reason that no other State
has had so much TO send. For many years
the gold that was taken out of California
mines went East as fast as it could be
sacked up. When we had produced five
hundred millions of dollars in gold there
was perhaps five million circulating in
the State. The drain was kept up when
our product changed from gold to wheat.
The bulk of il went abroad and remained
there. What was not parted with in pay
ment for foreign luxuries was taken out
by the successful men who aspired TO a
broader field for action. The list of these
emigrants is long. Some of their names
are still kept in the public mind by the
spectacle OF unsightly shanties on our
principal streets. The rents of these
shantieS are spent in New York, Paris
or London. AS rule the first generation
of rich men do better by the State than
the second. With now and then an ex-
ceptiou. the founders of rich families re-
main with US. But their children, and
very likely their wives, prefer New
York to San Francisco and Europe to the
United States. They perform a certain
amount of lip-service for the benefit of
California. but their ducats are dis
tributed elsewhere. The right OF person
TO live where he pleases is not ques-
toned, but the stream of gold that goes
abroad for the use of nOn-resident
property-ko lders Is a heavy drain on our
financial vitality,
The millionaire who has just died was
an exception to this rule. AS he accumu-
lated money he invested it in the State.
In most cases he put his money into the
raw material of wealth ana 10 time con-
verted it into paving property. Without
the aiQ Of his money and his energy, it is
hard 10 tell what would have become of
the iron and steel indus ry. He believed
that in spite of some drawbacks in the
way of hlgh-prced fuel and high taxes
California could compete with Eastern
Manufacturer. 1t was never his practice
to look for an increase from loans of
money. He preferred rather to take the
chances of original investment and look
for profits in the improvements he could
make. 1t will be admitted that a higher
coed by the late Mr.. Fairs method than
to succeed by loaning money on gilt-edged
security. But Mr.. Fair had the ability to
design and conduct vast enterprises, and
if he took greater chances than the money
lender he made larger profits. The work
Mr.. Fair had in hand at North Beach is
one of his conspicuous enterprises. The
purpose is to convert forty blocks fronting
on deep water into sites for manufacture.
ing purposes. The convenience for ship.
ping which these sites will afford will, il
is supposed, Offset some trif1iug disadyan-
tages California manufacturers labor
under. II is a good thing for the State
that the completion of the work is pro.
vided for in the departed milllonaire's will
The example Mr.. Fair set in his industrial
activities is inspiring. Probably few Of
our r!ch men can bring to the prosecution
OF such enterprise the combination o.
courage, sagacity and energy which dis
tingulshed Mr.. Fair, but disposition tt
follow his example will throw new life
into the community.