New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1875-08-28


upon many Of the leading bankers Of the city the pur
Of obtaining their views upon the cause Of the fail
In San Francisco and Its probable effect upon the
business interests Of this city.
THE PRESIDENTS ANTECEDENTs
prominent banker wa-st said that the President
Of the suspended bank william c. RalstOn began bis
ness in 1850 in the City Of Panama as the agent for Gar
risons steamship line In 1862 he establishes banking
house in San Francisco under the firm of Garrison
Fritz Ralston. Subsequently, on the death OF Mr.
Fritz the firm dissolved, and Mr. Ralston became
member Of the banking house Of DOnshue, Kelly Co
In 1865 Mr. RalstOn organized the Bank OF Califor
mia, with capital of s2,ooo,0oo, which was
afterward increased to $5,OOOOO0. Mr.. Raus-
stOn, he said, enerDrisng and energetic
man. the leader in all the large enterprises on the Pacific
coast The failure OF the bank precptaed by seve
raj different operatiIg together at this particular
juncture to bring about disaster The bank, II was gen
orally understood had loaned heavily mining stocks,
which had available market value. There had long
bitter contest for supremacy between the Calior
MIA Bank and the Nevada Bank, in which Flood ana
O'Brien the weknown bankers. were Interested.
There was no doubt that the Nevada Bank had found
the California Bank in tight place. and had used their
advantage lock up gold. II was reported that they
had "squeezed' them stocks and by calling in loans
had created pressure which resulted in run on the
California Bank
This failure, lie continued, will have no appreciate
effect here. The stockholders, under the laws of Caifor
MA were liable for ZIG, 900, Co., and IL would appear
that the dopositors fully protected 1.-The pcrma-
ncnt effect" he said "wi he beneficial to the business
OF the country. There plenty of money but no conf
Gence The sooner get TO The bottom the better
The sooner we know who conducting business on
sound principles and then push out on the way the I'M
sound aud rotten the sooner confidence will be
restored, aud the financial interests Of the country be
revived"
INVESTMENTS OF TIE EANK.
The senior partner Of a large clearinghouse In the
vicinity OF Waist in reply TO inquiries rs to the crcum-
stances connected with the suspen sion If this bank said:
1.-THE President is good liver and clever jovial fellow"
lie has been very useful to the state OF California in
building enterprises developing its resources
conducting business was not sound. with derosits 81
80 100000 to $00oooDo he kept on band as an avail-
nands. When The emergency cane OF eonihc ne vas S
frnsccss. aud the banK was obliged 10 suspend:
ntcgo stcd in every Important enterprise, ana
his operations extended n every direction the money
Hay" tn ned out ady bn which at first promised
rces fll. and may in the distant future prove - be Tor
tnae investments for those who can hold ihcir own
until the tide turns Mr.. Rqston furnished much OF the
capital for tie erection Of The new Palace lloe, IL sai,
Francisco, the cost of which il is rcpored will reacn
$0OO0oo. He was The PRINCIPAL man in ne work oi
rect AZ enormous ,XInSc Financially, II IS lal!-
{, lri may eventually prove 10 De pioh'anr ih,, .
badly. lie was extensive Of mining shares, and
bank made advances stocks tn very large amount
Flood and ODIie. struck the "he BONANZA in the Viz
sina Mine Mr. Lal;,on BY tiis lost influence IN ne
bad failure he soii, INVOLVING S13.0oogco one
third OF which ]. capital sunk ami iwollldi dei2''
large amount ltcy, ana had been viewed VITA
su' piciOn by several BANKERS.
SPECULATIVE SYSTEM OF BANKING.
Another well know banker stated that the bank had
been trying for time past to cell their plain bs but
could get buyers. The bills OF good institutions,
Endorsed by the California Bank, and probably leaned to
them good coateras, lad been taken readily, but
circumstances not known TO the general Public MAJ
induced bankers to he cautious Banking hisnc - ne
said is carried III san Francsco ~ IN Europe ani
in this city. The widest KIND OF banning Is allowed u,
san Francisco. Specua0nls ndul"edn 70 an extent not
known in conservative financial c'rclcs Fortunes are
enen are r maui s soe HIS goo pcr cen; IN y en- The
eest rrlmors, well circulated and plausihly WRIT IL
taos here, and II new country like California it
admissible to loan money or hnlnr'a inSntGtons on
rites based ON some work or enterprise undertaken
to develop the natural advantages of the state, oi 10
increase it, pIoa erty Bni ~ tne The PRINCIPLES OF
sound Landing would he applied Vigorously III every Part
of the United stat g.
ALL ENTERPRISES GRAsPTD BY THE RING.
A prominent gentleman recently from the Pdcifc
States, WHITTIER he went to organize new business
stated yesterday that during his stay in San Francisco no
ascertained that the Bank OF California waa controlled
by ring who endcavo.cd to grasp everything within
TIER reach ia the way Of now enterprises lie bclc .ed
that the failure OF tue Bank and the DESTRUCTION of NE
ring, though it would FIRST have serious results, would
ultimately benefit California The gentlemen who con
trolcd TIC Bank were men who owned Sale ds'leies;
Lad S75O,OJO in carriage factory, owned
two-thlrds o: the Sab. francisco Tlfater. and
m 1"l at 'I On exnnse Of f,om i've to fix m"rs
Eofhing Of Importance could he started there Tut IN"
Bank Ring would either endeavOr 10 rule or rum H. ME-
lie iho-C of Tweed 1T bany during the gold. Iys OF
friends aud comrades Of the clique that assembled at the
Commercials parors, and every enterprise was there
Nay Nay, iss rd ndu had h 5n wLJawm hut ne
fitl M hcli lac
back much Of their money. lie considered it a bad
failure, owing to tie numerous enterprises III Which the
leading officers of the bank were interested.
CAUSE OF THE FAILURE.
prominent banker aud broker, III reviewing the
causes Of the alre said that It the result of long
years Of not very good banking Money had been heavily
invested in mining stocks, good many bogus, and
when the came there nothing avaabe 10 dir
pose of meet the call Oi dcpOstirs lt Known III
financial circles also that there had been much Wild spec
uaion in san Francisco an this panic had not been
expected. Besides when tue run came, there no
chance 20 help them New YORK was 5000 miles away
were ali represented by gold not srcenbacks, became
yiou about the safety of their money ana could not be
EASTERN CITIES not AFFECTED.
cashier Of OF the strongest moncyed institutions in
this city, in brief conversation vest to-day with aTepper
TIE TRIBUNE said: "Ths failure Will not seriously
affect the money market here. Iu the panic in 1873
when having failures every day. the san Fran
cisco folks laughed at ~, and tlonst their syst m
better than suppose we can laugh at tem now
FIdnoiscO has long been the center OF great
financial ring, which was opposed 10 the principle OF live
and let live. Every cnterprisns man who went TO San
trancisco daglnS tie past few years Las been
confronted by the power of this combination
winch WAS q formidable obstacle 10 his success.
The California banl Iod many streams Of industry and
its money Nude Flows, built hcacrs and put up an inn
hotel. Mr. RalsiOn Identified with every III
tcies: tie Pacific coast 1t possible Tor all his
otrutions to be successful. Two or three out Uf every
five. probably, out all right hut the bad invest
mcnts finally swamped Lin. II this powerful ring -
broken ny This ialu'o It viii be one OF the very be9,
things Tor California and 81 an opportunity for fresh
capta and new men 10 Organize business on sJubdcr
basis The Cinnamon" lie said, 1t IL reported, viii