Ottumwa weekly courier. (Ottumwa, Wapello County, Iowa) 1872-1899, 1875-09-01

CHICAGO, Aug. 26.-It is the opinion
of the city bankers that the failure of
the California Bank will have little or
no effect upon Chicago.
NEW YORK, August 27.-The failure
of the bank of California while i'm
mediately caused by depositors run,
was directly the outcome of conflict
between two cliques of California op-
orators. One was the bank of Cali
fornia party, headed by Mr.. Ralston
and Mr.. Sharon. and the other headed
by Messra. Flood, O'Brien and Held
enfelt. The latter party have estab-
iished bank in San Francisco called
'the Bank of Nevada" with cash
capital of 5000. 900 gold and the right
to increase it to twenty million dol
lare. Incidental to this right have
been running the properties known as
Savage" the "Cslcdonia." the "Cali-
fornia.' The "Ophir" and the sCon-
solidaied Virginia" The three latter
are known as the '.Big Bonanza" mines
and the bank of California partly OBJ
tained control of them. In getting
this the Central stock of California
was run up from sixty to eighty and
hundred, and was then multiplied by
live, which would make the highest
price one-sixty. 1t has been strained
of late and pinched, and il has been
evident to bankers here. who have
Stunned their bills, from the fact that
in the past sixty days most of the bills
offered in this market here have been
those of other institutions. endorsed
by the Bank of fCalifornia. The Infer
cnce has been that the bank OF Cali
fornia had hypothecstcd securities
with those who lent their bills, and
that this borrowed exchange was used
to obtain the funds needed to carry on
the large operations Of the bank. In
borrowed bills which has so ap-
peared were those of the Bank
of British Columbia and the Bank
of British North America. The
amount of unacceLte bills of the
Bank of California in this market is
small. The banks London CORES
pondentS were the Oriental Bank.
strong. unlimited institution. and one
of the best in London, havin" cap
ital of fl.0O0.000. and reserve of
E5000O0. SO that the direct losses OF
the failure here. are comparatively
small Most of the decline in the
stock previously noted, has been re-
covered. Panama excepted. The
weakness i'll Panama is occasioned BY
the impression that the stock is large
ly held in San Francisco. Laidlow *
Co. agents of the Bank of Califor-
MIA here, have not suspended. and
are paving everything except the
Bank of California obligations.
New YORK, August 27.-Fisk IL
Hatch say the bank had no interest as
investors in the Central Pacific Rail-
road.
The Secretary of the company. in
this city, confirms this statement. but
says that the Central Pacific Railroad
had an account with the Bank. aud had
made loans from 1t. Hc had not heard
that the condition of the bank had been
considered nnsound by bankers
Persons interested in the affairs of
tho bank arc positive In their assertion
that the bank will, after a short time,
be able to fully satisfy all it's creditors.
New YORK, August 27.--A special
dispatch from San Francisco Gays the
Exchanges are all closed and business
is in state Of suspension. Intense
excitement is prevailing. Gold has
dropped to 1874.
NEW YORK, August a7--There ia
great excitement this morning in
financial aud commercial circles. caused
by the report OF the failnre OF the Bank
/ OF California. There is the utmost
confusion in the gold and stock ex-
change, gold rising to l44 Stocks
declined to , per cent. Atthe OPEN
| ing of the Stock Exchange there was
great rush to sell The amount of
shares transferred up to time of Board