Year: 1875

We find the following well digested
article in late number of the San


Francisco Ch, onicle.
In view of recent events IL is desirable that
everything possible should be done TO restore
confidence TO business circles, and TO again
inaugurate the era of prosperity, which We
were enjoying before the Suspension of the
Bank Of California. The temporary Withhold
| Ing of payment by the bank OF its larger de-
mands may be properly regarded as an em-
barrassment rather than loss. The rehab-
iliation of this institution by strengthening
1t with new millions is an already accomp-
lished fact. The same reasoning is applicable
To the Natfonal Gold Bank and Trust Com.
pany. This bank is embarrassed but not in-
solvent. 1t has the resources and in short
time will pay all demands upon IL. The Nir-
ginia fire Is "a more serious loss. but the COM
munity was strong one i'm its finapcial con-
diton. Itwas covered by two millions OF in
surance, less than one quarter OF which falls
upon our local companies and they are all
happily in condition TO make full and prompt
payment. These events have TO an extent
destroyed confidence and the result Is the
usual one. Money wihdraws and hides its
elf securely till the crisis passes and conf
dence is restored, when the hidden treasure
comes forth and lnvigOrateS trade and busi-
ness In the meantime our taxes are becom-
ing due aud many people are already gather
ing their funds together in anticipation of the
demand by the State, county and municipal
governments. During the months of Janua-
ry and February To withdraw the millions
necessary for the payment of taxes would be
a serious embarrassment to the money mar
ket and still further complicate our present
entanglements. This may be obviated by the
Introduction and passage ofa law at an early
period OF the session, pOstpOning In part the
collection OF taxes. To Withdraw five or six
millions Of coin at this time oil pressure
would add seriously to the difficulties OF our
financial position. To allow our taxpayers
to make say four quarterly payments in lieu
of one annual payment. would greatly re-


lieve the business community, ana would ~


no great degree disturb the finances OF the


State. The personal property tax and one
fourth of the real estate tax could be paid at


the usual time, leaving the balance to be
paid in three installmenGs, with such re ba tie
as might be offered for prompt payment and
some slight penalty in the way of interest for
deferred payments. The State and munich
pal governments would be in an entirely Sc
cure position, as they hold their liens until
the tax Is fully paid, and the f1nal receipt is
retained till full settlement is made. The
enactment OF such law would go very far to-
ward restoring the only thing necessary to
our renewed prosperity, viz: confidence.
THERE'S money enough in the immunity to
do all its business. Our banks are now carry


ing unusual reserves OF coin and are wit h
holding accommodations which they mig ht
safely makeifit was not for the unsettled and
panicky feeling in business circles.


The ideas here embodied are not


new to us. In conversation with
Governor DowNEY. more than four


months ago, he recommended precise
ly the modes of relief that are given
in the article above quoted. We are
also aware that our Assemblymen,
General J. r. MCCONNELL and Mr..


FRED LAMBoURNE, have for some


time been preparing bill intended
to reach and bring into practical Use


the ideas advanced by Governor Dow
NEY and set forth i'm the Chronicles


article. This bill will be introduced
in the early days of the approaching
session. The measure is just one
and will afford positive relief to the


commonwealths of the State, of coun-


ties and of municipalities. 1t will pre-


vent the boarding ofthe peoples mon


ey for whole year, a process which


is always oppressive to the masses
and never beneficial to the State. 1t


will remove the dangers which have
already presented themselves in San
Francisco and prevent their recurrance
there or elsewhere. We congratulate


the Chronicle on giving the first utter


ance i'm favor of o measure at once


sound, safe and practical, and full of
good for the poor taxpayers. We


should have placed our ideas on this


subject in print some time ago had we


not been desirous of seeing the honor


of taking the initIatory step toward


what we believe will prove a great re-


form, fall upon our legislative delega-
ton