Year: 1875

Will immigration Decrease.


The question has been asked, will
not the failure of the Bank of Califor-
MIA and the ensuing panic have the
effect of retarding immigration to
California. This is serious question
indeed, and upon its answer in a meas
ure depends the prosperity of the Pa
eific coast in the near future. 1t is ar
gued that the people of the States,
feeling at home the disastrous effects
of the New York panic Of 1878 will nat
urally enough assume the same con-
sequences here, and therefore prefer to
remain where they are. This view of
the case, however ignores the impor-
tant fact that there is in California
the soundest currency system in the
world. She is the great treasure
house of the world and while her
mines pour forth their streams of gold
and silver protracted specie famine
is an impossibility. The Comstock
Lode alone can supply more coin than
the most avaricious community in the
world could hoard. For banks to de-
cay for lack of coin on this coast is as
abnormal as for the inhabitants of
New Orleans to die of thirst. We do
not of course venture the assertion that
reckless management and wild specu-
lation may not cause reaction and fl
nancial tro uble here as elsewhere. On
the contrary, we freely acknowledge
that the late panic had deeper cause
than the mere mistrust endang cred by
newspaper libels. But the marvellous
rapidity Of the recovery from the
shock indicates the inherent strength
of our financial system. Gold is pour
ing into San Francisco at such rate
that there will soon be plethora. On
the other hand the irredeemable pa
per currency of the States finally
brought on panic from which it will
take years to recover. Two seasons
have passed since the Inauguration of
the troubles, and the situation is more
gloomy than ever. Time only adds
to the depression, and relief seems
more distant than it did twenty-four
months ago.


Every branch of industry is indeed
down to the verge of ruin. The cot
ton and woolen mills, though running
only half or two-thirds Of the time
and paying reduced wages to opera
tors, are losing money every day. The
iron and coal interests are in even a
worse plight, and the suffering among
the workmen beyond all precedent in
this country. Commerce drags more
heavily each week. Failures in all
the cities are reported on the increase.
AS necessary consequence money is
lying idle in the vaults, and the rate
of interest is lower than ever known.
There is no confidence among business
men, and securities of all kinds are
steadily depreciating, while real estate
is scarcely saleable at any price. These
results cannot be truly imputed solely
to the panic inasmuch as the panic
was result and not cause. The
evils oftheirpaper money system were
only discovered when the investiga-
ton opened by the panic was inaug-
urated. Previously the ship had sail
ed wildly on, and it was only then
that it was discovered that she was
leaking badly, and, in fact, wholly un-
seaworthy.


AS has been said the strength of our
California system and the rottenness
of that of the States is forcibly illus
trated by the different fates of the two
great banking institutions which clos
ed doors. JAY COOKE & Co. suspend
ed with liabilities, of only four or five
millions and were allowed to 60 to the
wall. The Bank of California closes
with liabilities of twenty million, and
Immediately the capitalists step for
ward and put the institution in posi-
tion to open In better condition than
ever. Indeed the people of the States
will now have q higher appreciation
of our hard currency system, and will
the more anxiously desire to live un-
der its benificent influence. So far
from retarding immigration therefore
the recent financial troubles will tend
to swell the tide of travel to our shores
and the capacity of all the lines of
transportation will be taxed to their