COMMERCE. 337 
lately failed it was asserted that they had paid one hundred 
and eighty thousand dollars of interest. It is a general prac- 
tice among farmers to borrow money, and, if before harvest, 
give a mortgage on the crops; if after harvest, store the grain 
in the lender’s warehouse as security. One of the most profit- 
able branches of business in the state is “ grain commission.” 
The commission merchant has a quantity of ready money 
which he loans to the needy farmer, who stores his grain with 
the lender, and the latter charges about two per cent. a month 
for the money, a dollar a ton per month for storage, and two 
per cent. commission for selling. 
§ 241. Speculation in Land.—Speculation in land is one of 
the most important branches of business in the United States, 
and the increase in the value of land has been one of the main 
sources of the wealth of the country. The American farmer 
going into a new district, expects to purchase his land at a low 
price and see it gradually rise in value, until it makes hin, if 
not wealthy, at least comfortable. Lands in Illinois which, 
twelve years ago, were to be obtained from the government 
at one dollar and twenty-five cents per acre, are now worth 
thirty and forty dollars per acre; and a similar remark will 
upply to most of the land in the Western states, though the 
average increase has not been so great. This increase has been 
one of the greatest inducements to the rapid settlement of the 
Mississippi Valley. Unfortunately, California has not been per- 
mitted to derive much benefit from this source of wealth. The 
fertile valleys near the coast had been granted away in large 
ranchos by the Mexican government, and the American goy- 
ernment Tefuses to sell the land in the mineral districts, 
It appears to me a matter of the utmost importance to the 
welfare of California, that the land in the mineral districts 
should be sold. Not more than one acre in forty within 
the limits of the mineral region is now occupied for mining 
purposes, and not more than one acre in ten will ever be 
worked. 
§ 242. No Paper Mo:ey.—There is no paper money in Cali- 
15 
