The San Francisco call., 1896-07-27
THE GOLD OF CALIFORNIA.

The State of California has poured into
the lap of commerce during the past forty
seven years the enormous sum of over
81, SOC, ,000, 900 worth OF gold.l II is still an
nually adding to the wealth of the world
an average output from its mines of pure
gold equal in value to $12, ,0OO, 900, and the
indications are that it holds within its
hills stored-up treasure which will en-
able II to N maintain this average for an in
definite period of time.
The last report issued by the State
Board of Bank Commissioners discloses
the surprising fact that, at the time of the
report, there was not to exceed the sum of
twenty-five million dollars in gold coin in
the state of California. There is probably
no more than that amount at the present
time. Where has the gold of California
gone? What have the people to show in
its placer How can the outflow of the
past be checked in the present and future,
so that California may keep her gold at
home?
These are serious questions, ana the
State of California cannot hope to be
permanently prosperous until she has
answered them all. The first two of these
queries fEd their answer in our past
history. The gold of California began its
outward flow with the very opening of its
mines in 1S49. 1t went eastward with its
returning miners and with the ships
which brought merchandise to the new
and undeveloped State.
AS the valleys of California were settled
by pastoral people the gold ssill went
away TO bring them finished products
~ sol, h,,k
As population increased, this demand
kept pace with it. and up 10 the present
day California, with all her diversified
productions, has never been able 70 secure
and keep the balance of trade in her favor.
This is why her gold flows out annually
faster than it flows up and in from the
heart of her mountains and mines. There
is another reason for the outflow of our
California gold. AS the industries and
trade agencies of the State have expanded
great corporations have been formed to
control these enterprises and absorb from
them the utmost OF wealth for their or
ganizers. These corporations found il
expedient to borrow money in their in,
fancy for the purpose of accelerating
their growth. The result has been the
creation OF large interest-hearing debt,
due to the East and the Old World,
payable, principal and interest, in gold.
The Southern Pacific Railroad Company
alone, for example, pays annually the
sum OF five millions OF dollars in gold as
interest on its bonds held abroad. This
vast outgoing stream of gold equals
almost half of the annual gold product of
the California mines. Is it surprising that
of its billion and half of gold production
our State has but beggarly one-sixtieth
OF that vast sum remaining in Its banks
and arteries of trade?
The third query remains to be answered:
How shall California IN the present and
future keep her gold at homer There is
but one way possible 10 accomplish this
result. California must turn the balancs
of trade in her favor. But howP BY be-
coming manufacturing State. BY chang
ing her immense annual product of raw
materials into finished products within
her own borders, instead of sending them
abroad to be made into finished forms and
returned to her people for their own con-
sumption. BY encouraging her citizens
to build factories and develop enterprises.
BY demanding of the Federal Govern
ment that protection of her industries
which it has accorded to the Eastern
States when they and their man nufacturing
enterprises were young. This is the way
to keep the gold of California at home.
This is the way TO bring back the wealth
which has flowed out in the years gone by
in adverse balances of trade. This is the
paramount problem of business and Of
politics presented this year to the people
of our Golden State.