St. Johnsbury Caledonian. [volume] (St. Johnsbury, Vt.) 1867-1919, 1875-12-31

Palace Hotel was. through RalstOn. an
injury to the bank, is not known but
no one denies but what it was very
heavy. Putting all these things to-
gether, is ii any wonder that this bank.
which was really but another name for
RalSt0n, was found to be minus from
three to four million dollars. The bank
had been considered unSound for some
time before the failure Flood &
O'Bricn We're watching their opportun-
ty. They wanted the position for their
new bank that had long been occupied
by the Bank of California as the lead
ing bank on this coast. The oppor-
tnnity came and they seized upon it
They knew the bank to he crippled.
AT a heavy rate of interest they first
locked up all the coin in the other
banks that they could, which was sew
eral millions. The run on the bank
followed, and the bank could not get
the coin because it was not to he had.
The quantity that should have been in
their vaults was not there, and their
liabilities over their assets were after
wards found to be about 50, ,5OO, 900. 1t
can thus he shown that the interrogation
or delay of Il telegram, could have had
but little to do with this failure.
There is much to lead one to believe.
that had il not been for this jealousy
of Flood y O'Brien, and had Ralston
lived, he would have made good the
LOSSES of the bank the same condition
having been bridged over before. time
and again. At the time had the di-
rector> of the bank known the extent
of their liabilities us stock holders (thev
were Ignorant of Il statute law they
would not have asked Ralston to resign.
lhclI purpose WAS to throw all blame
upon the President and let the bank
fail. Instead of killing the bank their
course killed Ralsion. for the failure
and his death. let it bc understood. are
inseparablc. The syndicate was formed
simply because the stock holder was
personally liable for the debts of the
banks, even farther than the amount of
his stock. Being liable To the last dol
lar they possessed. they soon deter
mined I" pul>nc Il course 10y which they
could realize the greatest amount ont
OF the assets of the bank. They did
under the circumstances just what it
was for their interest to do. The press
has tried to make it appear that it WAS
done out of pune regard fur the credit
ot the state. The effects OF
THE PANIC
r f"llowIng tins failure are not over Yet.
The Virginia City fire DESTROYED two
millions ot property. among which WAS
Il good portion of the machinery Of the
richest mines on the coast. The sup
ply of bullion from these mines is tenn
porarily cmt off. The grain crop of the
state the past Year waS but little over
onc-half. The result of all these eau
srS has served to bring on a general de
preston. Il tightneSs in the money mar
kct. and Il loss of confidence in one an
other in business circles. This state of
things continuing will sooner or LATER
bring on the same hard times aS there .
are i'll the Eastern States. 1t is thought /.
that the prospect of heavy crop the
coming year i> the only thing that will .
prevent what might otherwise take
place. The prosperity of the state at
least. has from the causes above referred .
to. received Il set back. Ii may he well .
that il has come now. rather than later.
for the longer the delay the greater it .
might Toe. 50 far us Il general depreS- I
sion III business takes place here il .
must be attributed to other causes than .
the circulating medium. 4 fcverish .
speculative extravaganza and indul- .
gcnre in show and fashion and general .
rrVcrses To any people. These all find .
good soil for growth in California. They
exist To Il greater extent if possible than
in any other portion of the country.
Heavy amounts of gold, silver, grain
and wines. are annually exported from
this state. 1t all goes t" pay foI what
is imported and nothing more. OF the
articles imported, the greater part are
Jewels, precious stones. silks,
SaliuS. etc, etc. Gold and silver for a
medium is one necessary
for the prosperity of Il people.
but Il prudent economy, and engaging
in nothing but honorable and legitimate
business. and temperance in all things.
is another. A. j. II.
Z. :. The above is written in reply
to an article in Il late number of the Cal
rdOnidn.