The Middlebury register. [volume] (Middlebury, Vt.) 1850-1882, 1875-08-31
Bank Of California.

VhteI pilrc tnIOuguOuI thc OOuutIy 10 auB-
mented by almost daily failures and sus.
pensions Of business houses Of high credit.
The latest is the suspension of the bank
Of California at San Francisco. 1t was
thought to be one of the soundest, as it
was certainly one of the largest financial
institutions of the country. Its failure
was announced on Thursday last. The
effect Of this announcement was a decline
in stocks and slight rise in the price of
gold. Several other banks on the Paci.
fc coast were obliged to suspend, though
it is thought the others are sound and
will Foon resume again. The treasury
department at Washington, upon learn.
lug of the disaster, transferred large
amounts of gold to the Pacific coast and
it is hoped tho panic may be soon allay.
ed. The decline in stocks at New York
was soon recovered, but tho rise of gold
was maintained 1t is said the paid up
capital OF the bank Was S5,000,00O and
that it had deposits amounting to at
least Sl0,000000. The inference as to
the cause of failure is that the bank had
hypothecatcd ita securities with those
who lent their bills and that this borrow.
ed exchange was used to obtain funds
needed to carry on the operations Of the
bank that it had been extensively
managed and unwarrantable dividends
had been. made, and besides, it is limited
that large amount Of funds have been
used in outside speculations, or, in other
words, that there was some rottenness in
the management. The president, Mr..
W. @. Ralston, admitted from the start
that there could be no resumption. Az
forwards he confessed delinquency by
suicide. The history Of the institution is
given by the New York Times as fol-.
lows
The bank Of California was at the head
OF the fiscal Institutions of the Pacific
coast 1t was organized in July, 1864,
under the laws of California, and had at
that time capital Of 100000. This
has since been increased to $4,000, 900,
on which sum regular monthly divi-
dend of one per cent. was paid. The
bank is understood to have had very
large reserves. Its list of officers and
stockholders includes the names of many
Of the leading citizens of California, and
its influence extended to every part Of
the country. Its foreign relations were
also unusually extensive. IL had CORES.
pondents and drew directly on London,
Dublin, Paris, St. Petersburg, Amstor-
dam, Antwerp, Hamburg, Bremen, Ber-
lin, Ncipslc, Vienna, Frankfort on-the-
Main, Copenhagen, Stockholm, Chris.
tiana, Goteborg, Locarno, Melbourne,
Sydney, Auckland, New Zealand, Hong.
Kong, Shanghai, Yokohama
The president Of the corporation is
w. G. Ralston, and the cashier Thomas
Brown. As the bank was concerned in
great variety Of industrial enterprises
in California and the adjacent States,
the immediate effect Of suspension will
be most unfortunate. Outside operations
have been the cause of the disaster, most
likely; and the collapse of the bank must
pinch the men who have depended upon
it for credits and discounts, This system
of "spreading CUT does not seem to have
affected the credit Of the bank on the
contrary. up to recent period the yhdRf a lRe
gion as stable as the Bank of England
Among the recent investments of Rails
ton was the Palace Hotel building San
Francisco, an enormous structure, said to
be the largest hotel in the world. This
caravansary, to cost about S2,000,0U0
when finished, was to be ready for guests
on the first of October next William
Sharon, United States Senator from Ne.
vada, was one Of the owners Of this en-.
terprise, but lately sold his interest to
Ralston for an enormous sum. Whether
justly or not, the bank or its manager
has been engaged in a vast number Of
mining schemes, some of which have
been costly and Improbable The princi-
pal stockholders, however, are men of
great wealth, and their assets, aside from
any interest in the property Of the bank
must amount to many millions. Gener.
ally, financial matters in San Francisco
are said to be in healthy condition, and
it is possible that the failure will work
no permanent injury there, as already in
timated. The master spirit Of the Bank
of California was William G. Ralston,
one of those keen, restless kings of
business" who make their mark wherever
they go. Until within year or two Mr..
Ralston was cashier of the bank and D.
o. Mills was president. At the retire.
ment of Mr.. Mills the cashier was pro.
NOTED to the head of the institution.
Visitors to California, if prominent men,
whether lawyers, editors, lecturers. Con-
gressmen. distinguished foreigners, fnan.
ciers or business men, did not consider
that they had seen the institutions OF
the country unless they had visited the
magnificent bank building and had been
entertained at the princely country seat
of Mr.. Ralsion, at Belmont, in the San.
to Clara Valley, not far from San Fran
cisco. The famous auancier is a quick
alert man, Of few words and decisive
character. His dispatch of business ia
something marvellous, and the popular
belief in his inialiibility amounted to a
superstition. His opinion of men. bust
ness projects, and in financial matters
generally was considered conclusive.
His personal power in the States aud
Territories was great. The influence
of the corporation of which no was chief
officer was felt everywhere.
A sailor on being asked. if he could
have his wish three times. what he would
wish for frst, answered, "All the rum in
the world" And what for the second ?
"a n tha tohoooo -. tha mould Al