New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1875-09-06


purpose of aiding the institution retirement of
portion Of its circulation. Thus far, as reports
coming TO the Treasurer indicate, the demand for
gold is principally for commercial purposes.
CAUSES AND CONSEQUENCES OF TIE
FURRY.
MAMMOTH INvEsTMENTs OF THE BANK OF CALIFoR-
MAIZE BANK DEFEATED By TRYING To con-
TRoL CERTAIN SILVER MINEs-FIOOD oBHIEN's
SILVER .POSsEssIONS-LAvIsH HABITS OF CALI
FoRSIANs.
IFEOa A sTECIGL CORRESPONDENT or THE THi"CNEI
SAN FRANCISCO, Aug. 27.-The occurrence
Of severe financial furry, tie severity Of which now
seems to have passed. suggests few considerations
on Industrial and monetary affairs OF this coast ana
pcople 1t was matter OF boast with the Calornians
durin the convuson years and the dcpres-
siOn which followed thereupOn that they were exempt
from that form OF disturbance. being Oh specie basis
good many taun:s and moral and political lessons
were read TO the country about its paper
currency. which would seem ludicrous
they were reproduced to-day. The most ardent
hullionist among them is willing to admit
that gold and silver have some Disadvantages "a
currency rs well greenbacks, and among them Is the
tndeieasble quality that TO be made to earn something
gold dollars like paper must be loahcd TO some enc
who ha use for them; if wanted back again by the
frst deIostors simultaneously and suddenly they can
not be had Hence come panics. The surface trouble
arises in the current practices OF banking;
hut back Of this again Is the fundamental
question OF the value Of the use OF money.
The telegraph has doubtless described to You the course
OF the monetary excitement its rise and wanc. may
ecnane myself therefore, obscrV ations on its
causes and consequences. The particular event which
marked the outbreak of trouble was, as you know the
suspension Of the Bank Of California on Thursday alter
NOON This bank had long been regarded "a one OF the
strongest banks in the whole country and up to year
or so back it believed be far the strongest on the
coast No greater shock the business interests OF the
state could nave happened In spite OF the usual hc-
shakers and told you comments, 1t must be sald
the event quite unexpected by all but possibly few
of its most intimate friends, and possibly halfdozen OF
It's rivals.
THE GREAT VENTURES OF The BANK.
The question is naturally asked What broke the Bank
of California - Tie history Of this bank dates BACK 10
the time the great failure of Adams Co. ana Inc ran
on Page Bacon Co, memorable in the rccolIecUols oi
all old Cafornians. After those events the ank began
70 gather custom strength from almost every part OF
te coast SO great it's power during the period be-
tween 1850 and 1854 that it could crush almost
any undertaking which it opposed, and estab-
lish any which 1t favored Many merchant
manufacturer and capitalist has had occasion 10 leel INC
weight Of its resentment Under the management OF MI
u O. Mills it's former President, the policy Of the bank
was autocratic Its riches edy during that
time immense and it has been credited with as high as
s5O0OOOO surplus. Even before its doors were closed
1t was supposed tie unimpaired capital was $15OOOOO
miscellaneous nature OF It's business IL was generally
said that there very good, very doubtful en-
terprise In either California Nevada In which IT was
not Interested Among the venture which nave had the
Patronage the bank OF late he mentioned st ana
foremost the mammoth Palace Hotel which will have to
be very managed pay the interest on its great cost
S7OO0OO0 Messs. RalstOn and Sharon, the principal
of this building have been also the more active
officers fl the bank Beside this, the Mission WOODEN
Mills, the Cornell Watch Company, the kInoall Carriage
10 lUr nil M
paay, Artificial Ice Companies. and many other
similar, and dissnnhar adventures have been pro-
motsd by the bank. Some Of them doing well
-:Le wooden mills and carriage factory fol examples
beside beng very beneficial the State and it's skilled
sborers and IL it's advances had all been made to objects
of this kind there would be complete sympathy with its
present Distress 1t has given assistance however, 10
numerous land speculatiOns aud suppose there are
hundreds OF large tracts all over the State, held Tor
rise" for which the banks funds have been loaned.
Bone OF these Wild sheep which cannot for
long time be used for anything else and which cannot
a. such pay interest the they ortgaged for
Then there are the investments in mining schemes
Wien the list OF publiehed 1t will be found to be
the most heterogeneous which bankers portfolio has
exhibited for long time.
THE BANK BROKEN BY ITS MINING STOCKS RISKS.
In the attempt to help it's friends and oiccrpatrOns
prOpretorshp Of certain mines in Nevada
lprincpay COmstOck LOdc) 1t has IN It's defeat. In
addition to all risks OF mining Itself are 10 De reck
b!ers on the face the earth order TO succeed The
stakes are huge the players bold, and the motions
rapid; and he requires cool head AMI clear brain to
dabblc successfully In the business conducted
Oh Califo mast this city, suspect the CaiiOrnans
are the inveerate gamblers in the world and il
ever the United states should be coTneTed' IN the
money market II would be by Californian. Among the
great clneftJns OF the mining stock tournament are
Messrs Flood Brcn and VIM. Sharon, Senators Stew
art and Jones' I. W. Park, and Aonzo Hayward 1t hap
pens that Flood OBrien, by their partnership with
superintendeuts Of mines, who descend the shafts
and examine the workings have made their firm COM
ycte masters NJ the richest silver MINES in the world
the Consolidated Virginia, ophiS and California. These
mines are 80 rich that they turning out in dividends
million and half month, and their joint market
value indicated the Exchange three days ago. wOud
b. $1,000 700. This firm has undertaken 10 supply
the United States Government with s15,OOO,OOO OF
silver bullion for minng purposes. Mr. Sharon. as well
Messrs Stewart and Jones have been concerned also
IN the manipulation OF these mines and has happened
more than that the st named has been opposed 10
the great FIN IN a contest for control IL u suspected
that Mr. RalstOn has also taken hand, and that The
Bank Of California has furnished INC sinews OF war to
one 0 both sides
Extensive WITHDRAWAL or FUNDS.
II Is asserted By Flood ana not been cOnradicted
W sharon or Raston, tlat cd tends had helied ana
that there no des to crush bank in their minds.
But II also well known that, failing to gam control OF
the bank the latter publicly ayowed their Determination
70 start bank OF their own, Mt Louis Mcflne VI New
YORK being invited hitler manage IT, IL is certain,
also that large have lately been drawn Of he