The Democratic advocate. [volume] (Westminster, Md.) 1865-1972, 1875-09-04
The Failure in San Francisco.

On Thursday of last week run was made
on the Bank Of California, TO which il sac
cumbed after nearly million and half Of
dollars had been paid out during the day to
the clamoring crowd of depositors. The fail
ure Is the more surprising as the bank was one
Of discount and deposit only, not having the
privilege OF circulation, and did business ex
elusively on gold basis. Its capital was Eve
millions of dollars, but its reserves were un-
derstood to be OF much greater amount. The
bank was state institution, organized under
law Of California, and was at the very head
OF the fiscal institutions Of the Pacific coast.
Ut late years il had been largely engaged in
themost speculative enterprises Of that region,
and, under the claim Of developing the re-
sources Of the Pacific coast, had locked up
largely Of its cash means in reproductive in
vestments. 1t travelled wide from the path
oflegitimaie banking, with the result usual 10
q gambling propensity, TO accept great hazards
in the hope of large and sudden gains. The
managers Of the bank, have been engaged in
an infinite variety of enterprises, and became
involved, directly or Indirectly, in almost
every industrial project of any note within
its reach. Its connections we're far-reaching
and intricate. The famous Palace Hotel,
San Francisco, an enormous structure, IS
among the speculative ventures of the presi.
dent, he having purchased the interest in that
concern Of his sole partner, Senator sharon.
of Nevada. This bank was organized in July,
1854, and had at that time capital of g., 000,-
600, which was increased to s., 600, on
which sum regular monthly dividend of one
per cent. was paid. Its list Of officers and
stockholders included the names of many Of
the leading citizens Of California, and its in
inenee extended to every part Of the country.
Its foreign relations we're unusually extensive.
It had correspondents and drew directly on
London, Dublin, Paris, st. Petersburg, Am,
sterdam, Antwerp, Hamburg, Bremen, Berlin,
Leipsic, Vienna, Frankfort on.the Main, Stock
holm, Copenhagen, Christiana, Goteborg,
Loearao, Melbourne, Sydney, Auckland, New
Zealand, Hong Kong, Shanghai, Yokohama
In addition to these the bank had agencies at
Virginia City and Gold Hill, aud correspond
enis in all the principal mining districts and
interior towns Of the Pacific coast.
w. q. Ralston, the President, was the
master spirit OF the bank, one Of those keen,
restless kings OF business who make their
mark wherever they 60. Until within year
or two he was cnshier of the bank and d. o.
Mills was present. At the retirement of the
latter the cashier was promoted 10 the head
~ VIC iH1tAtodoue IN Tue mhlNituut OF It's
operations the bank was without rival in the
country, acting as the fiscal agent Of the ma
joraty Of the mining corporations Of the Pacific
coast, and, il Is said, working many Of them
for the benefit Of the Institution. It's political
power was immense, and the consultation Of
its officers frequently settled who should be
the Mayor of San Frpqeisco what should be
the complexion Of its Board 81 Supervisors
and Of its staff Of city and county officers Who
should be Governor Of the State and who
shoald rule in the Legislature who should
60 to the U. s. Senate from Nevada or Ore
gon, and of what character the prevailing
majority in the Legislatures Of those States
should be. Outside Of the Pacific slope its sus.
pension need not seriously Affect The current
Of business. The several reckless enterprises
in which the bank locked up its money win
sn6er, and some Of them probably follow the
hank into bankruptcy.
The President committed suicide on Friday,
the day after the suspension, by drown
ing himself An Investigation shows that he
had Incorporated over $1,000, 900 Of the
funds Of the bank.
The liabilities Of the bank are roughly est.
mateda 81 q, 00e, 900, the assets not exceeding
~ 900, 900, the latter, OF course, subject to
many c0ntineencitsin collection or realization.
Owing to the excited condition Of affairs in
San Francisco, caused BY the failure of the
Bank Of California, several other banks sns-
pended temporarily, but resumed business
this week.