? COMMERCE. 335 
The display looks very serious. There was a regular de- 
crease from 1855, when the great failures began, down to 
1859, and then the increase began again. The amount of 
assets is proportionably smaller for 1860 than at any previous 
time, but in fact the asscts are almost invariably nominal, con- 
sisting of bad debts that never can be collected, and property 
estimated at cost, but worthless in the market. It is rarely 
that a man declares himself insolvent so long as he bas prop- 
erty which he can turn into money. Our insolvent law is 
very liberal to debtors, and no doubt that contributes, with 
the very speculative temper of our population, the facility for 
getting credit, and the unsteady course of our trade, to make 
our insolvent lists so large. 
§ 240. Interest of Money.—Again, in the matter of the in- 
terest of money, California occupies a peculiar position. The 
current rates are higher here than in any other Christian land. 
The common rate on long terms and the best security is one 
and a half per cent. per month, for interest is always calcu- 
lated by the month. On short loans, or with security in the 
least doubtful, the interest is from two to two and a half per 
cent. per month. The laws place no more restriction upon con- 
tracts for interest than for any other commercial contracts. 
The man who promises to pay interest must do so at his 
own risk; for the law will not assist in any plans to violate 
his bargain. The high interest of money is owing in part to 
the unsettled character of the people, many of whom have no 
permanent abode, and wish to have their money so that they 
can get it at any time. The fluctuations of the market present 
numerous speculations to merchants. The titles to real estate 
are, in many cases, questionable, and the capitalist may not 
like to buy, and will demand a high rate of interest if he must 
take a mortgage on a doubtful title. Capital always makes an 
extra charge for running arisk. It is a general rule that in- 
terest will be high where wages are high. There are then 
many people who can afford to pay interest, and many people 
who will wish to obtain those comforts and luxuries only to 
