The Grange advance. [volume] (Red Wing, Minn.) 1873-1877, 1875-09-08
The BANK Of CALIFORNIA.

a-, NE Damn VI VALIT VnnlR.
Its Origin, the Secret OF it's Success
and the Men and ''Nerve'' Of Its Man.
The following is extracted from San
Francisco letter to the Chicago Tribune,
dated June LIST, 1874, written by Gath,
George Alfred Townsend.) At that
time Mr.. Ralston, the late president, was
cashier of the bark and the president was
D. G. Mili;.] .-rr -~>~.
l came to this coast resolved to knock
against the oere's portal and challenge it
to an examination, and, at the outstart,
determined to find the object guilty, as is
the correspondence custom. l was pro-
foundry annoyed by two reflections:
l. How could the Bank of California,
which was not opened until July, 1864,
have kept currency off the coast which
should have been in circulation there
nearly three years before?
2. How could bank, with $5.O0O,000
capital, govern great section of zone,
while we have one hank in New York
(Commerce) with $l0,OO0,0O0 capital
The house of Brown Brothers, represent
ed in New York, condenses into part
nership $25, 100000. The house Of Bar
ings is said to, even excel it; and the
bank Of England, the house of .tothschild,
ETC., ETC., so far from being obstacles in
the path Ct nations, are rather the boast
of them. George Peabody. banker, was
ena bled to give away, in rather imbecile,
though we'll meant generosity, about 49,
100000 The monopolist
These reflections were promptly met
by a gentleman with bogus land.claim,
upon which the Bank of California had
declined to advance anything, with the
remark: ''Oh! it's not the bank that
does it all; but every body is in the bank
that has monopoly. The bank keeps
out of the jobs, but the stockholders, in.
dividually, are all monopolists y
This seemed to be somewhat like a
financial application Of the terms E platr.
abus Unun, for ascertained that there
were about 800 stockholders in this bank,
and to hold it accountable for their pri.
vate venturings would be to diffuse the
limits of responsibility. Besides. the
capital Of the Bank of California. surplus
and all, is not a controlling part Of the
capital Of the Pacific coast. The Give"
capital of the banks alone in California is
about $12,000,000. In the bands of pri-
vate loaners-note shavers-are $4,000.
600 additional. The savings banks have,
besides, $26,OQ0.0OO of deposits adaptable
for loans. Sothat upon this coast, in.
habited by less than million people,
there are $48,000,00 Of capital, of which
the Bank Of California possesses, includ-
ing it's surplus, only $6,500,000. There
is one bank provided with English CAPT
tai, the London and San Francisco, which
has half as much capital as the Bank Of
California, and over this presides a gen.
tleman of the political reputation of Mil.
ton H. Latham, ex-Democratic United
States Senator. Three British banks,
and representatives present from all the
great banking firms Of Europe, should
have been able, with their reserve capital,
to drive any single American bank to the
wall, provided it behaved airily.
THE MEN IN THE BANK.
In the prosecution of my inquiries I
ran against the bank itself-a two-storied
stone building of a greenish color, re-
sembling only banks in general. Within
was large counting room. where about
forty clerks stood to their duty-amongst
them grave Chinaman in spectacles and
silk vesture, carefully porting over Hong
Kong remittance accounts and this
room, which was running as smoothly as
palace car, was presided over, as could
be seen through an open sash and recess,
by youngish gentleman with big fore
head and a healthy complexion Ralston,
the Cashier. Near by Ralston. gliding
into the Directors room ever and anon,
was mild-faced, dignifed man, more
amiable than commercial in suggestion
Mills, the President. In the outer super
stition Of San Francisco, these two are the
Bank of Cailfornia-the stockholders
drawing their one per cent. a month with
contented regularity, the business world
reposedly dcpositing its three millions in
coin every day at 3 o'clock, Saturday at
l: Such is greatness when you come
close to it. 1t moves like the Falls Of
Niagara, because it cannot help it.
ORGANIZATION OF THE BANK OF CALIFORNIA.
The rise of this bank was circumstan-
tial rather than premeditated. In the
early mining days of California, the pur-
chase of bullion, the sale of exchange,
and advances upon mining property ,made
much competition between California
bankers, and several strong private firms,
foreign and American, successfully led
the finances Of the coast. Amongst the
best remembered of these were Tallant &
Wilde, Burgoyne & Co., Parrot & Co.,
Page, Bacon & Co, B. r. Hastings & Co.,
Wells, Fargo & Co., Fritz & Ralston. Don
ahue, Ralston & Co., and D. @. Mills &
Co.
The junior partner in the firms next
preceding the last was native of Central
Ohio and after steamhOatinU covoral