Year: 1866

porters was held at San Francisco, to deter
mine what should be the character of our
currency At that conference it WIS resolved
to reject the National paper, and to deny credit
to ell who should pay their past obligations
10 that currency. 1t was further determined
to publish all such delinquents. The news
papers Of the State bear testimony that the
latter resolution has been most faithfully ob
served for those who presumed 10 pay their
obligations with that which The Government
solemnly declares shall be received as lawful
tender 10 payment of all debts, have been held
up to the scorn of the public. These honora-
bic gentlemen at that precise period of time,
we're largely indebted 10 our Eastern cities,
and their obligations were created when gold
and silver were the only tender recognized.
Did they discharge them by payment in gold
No. With gold ruling at 81 40 they pur-
chased the National paper, and with it paid
their Eastern creditors. and they we're neither
denied credit for so doing bor published az
having repudiated the moral obligations of their
contracts do not complain of this l only
wish to signify my disapprobation of that
waDton disregard Of the rules Of fair dealing,
which they enforced by social ostracism in this
State.


The advocates of al exclusive metallic cur
rency tell Us that we have already an abun-
dance Of capital, sufficient for the developement
Of the resources of this coast. and that it can
be procured at low rates of interest and upon
reasonable security. This assumption, even il
true, does not meet the proposition, that we
require q more convenient kind OF money,
haFmonixng with the balance of the nation.
But this is merely an assumption not warran-
ted by facts. There may be large amounts OF
capital 10 the vaults Of our resident foreign
capitalists. or this | have no means deter
mining except to receive as true the statement
that such is the case. propose to argue from
this stand point. that the amount of money 10
active circulation is wholly indequate to the
wants of the people.


The entire amount OF metallic currency
circulating in this State does not exceed three
millions-it is estimated by we'll informed
persons at two millions. Will any one assume
that this amount is sufficient for population
90 enterprising that this amount is equal to
the demands for our railroad enterprise that
1t is adequate to the developement of the vast
resources OF this State? No one will hazard
such an assumption. But am told that any
amount of non active capital can be procured
Of our home bankers /; all that may be neces-
sary to the agriculturalist, the miner, the
operator in fact, for the furtberance of every
scheme of public utility. l run no risk in
denying this, for it is fact generally admitted.
believe not denied save by the bankers, that
not a dollar can be had except upon city
securities. or the bypotheca'ion of collateras
at the rate of three dollars in value to the one
borrowed. Let the agriculturalist who wishes
in improve his farm. the miner who is solici,ous
Of hN
has some public enterprise in view, make the
experiment and be will at once obtain q
striking illustration of the truth of my state
ment. 1t may be said that capital cannot be
procured for the want of adequate secrities.
That the newness of the country, the unsettled
state of land titles and the general uncertainty
10 business transactions outside Of our com.
mercial metropolis. are the substantial causes
Of capital being restricted to the limits of that
city. 1 deny the proposition. aud assert that
no State in the Union can advance higher or
safer character OF securities. The assessment
Of property in the interior counties, the pay
ment OF not less than two millions of State
and county taxes annually by the people, the
yearly products of our farms, vineyards and
mines convey their silent snbstan.iaton Of my
position and an overwhelming refutation of the





to ensure their prosperity is money, capital
easily accessible, competition in the loan
markets created by credit system and all
adequate securities can be given by people
capable of paying two millions of annual taxes
Besides this they have been able to pay q
higher price for all the articles at the Golden
Gate metropolis to an exorbitant degree, than
eny other State in the Union and have in
ID in ~, - f.
and wounded soldiers of the Republic during
the last two years Of the war for its preservation,
more than one million and two hundred thou
sand dollars. What such people, capable of
producing TO such an extent By the use of the
property they possess, most imperatively need
to restore the former prosperity Of the State
Is more money and lower rates Of interest ;
impoverished as they have been by the con-
slant drain of capital from their midst.


The real cause Of distress and general ex.
hsustion, which are now preyipg upon the vital
energies of the State, lies in the scarcity
of capital ard the exorbitant rates of in.
terest demanded. With sufficient sup.
ply Of capital seeking investment, the
character of our securities, if detective now
would be enhanced. simply because the interest
both of the lender and borrower would CORES
pond and combine in increasing the value ol
the securities. 10 that competition among the
lenders created by the great abundance OF
capital not only would the rates OF interest
necessarily decrease but the security could be
hypoihecated for greater amount, and other
securities pot now available would be readily
taken aud still the payment of the interest
upon these securities would be more certain
than the payment Of the present high rates ol
interest. What more particularly gives value
to the security is the certainty that the interes,
will be punctually paid. Nothing will so much
copduce to such certainty as the reduction Of
the rate of interest The ability to pay the
principal is also increased in proportion 10 the
decrease of the sum required 10 be paid for
the use of the principal l, also establishes
q friendship between the contracting parties
often more valuable than mere security upon
personal or real estate, q friendship resulting
from the fact that there is an accord Of inter.
ests between the lender and borrower.


1t Is also charged that the substitution oI
paper currency for gold would prove ruiuous
to the industrial classes. Upon this point
desire to quote from the address recently issued
and most kindly distributed in both branches
of the Legislature by the Chamber of Com
meree of San Francisco, as follows: Whilst
the necessaries of life and all merchandise
being influenced by the laws of supply and
demand throughout the world, will rapidly
advance in price, in proportion TO the abun
dance OF the paper money on which their value
is expressed. this rule applies but imperfectly
to the price OF labor This proposition
asserted by the Chamber OF Commerce. re
solveS itSalf intn tbS that " h.lS. ha -, h,,;,,