, 1875-08-28

causo, Ia deemed tic failure tho rasut of a1ilduo
imitation Of tho business OF tt,n bank ~ tho way
Of buying and carrying TN all terss of pronefty
hnd bubiuess outside Of thor '*@alaaso 'anc-
tloue.
LYMAN J. GAGE.
LYMAN J. Gage Caehirr Of tho First National
Dank. yss found at hr slpBk, ati In mn interval
of business, answered few Questions. as fol-
lows:
Rcuortsr-Aro you OF tho opinion. Mr. Gage,
that tho failure Of tho 1lAnk of CAlifuTnie will
affect tic bauks ur tho ciotlit OF Chicago?
Mr.. Havo-Ik cannot affect us Ut all probably
our buasners will mt DO changed el0, aud it ces-
ta;n!y will not 80 That we could notco It.
IleportoY-1t will not lcssen confidence in
bauks bcro. will it2-
Mr., U.-I cAunot REQ how It can: we do no
businees to speak Of with tho Pacific CoaRt, hnd
thcro III ,oa1ly hardly auy connection betwcon
that section and Lilo rcst Of tho Union tn COM
mercial way.
K,-California might bc . separate nation as
far NJ re arc coucorncd.
Mr. u.-Cogtaiuly our only connection is
political one.
R.-liow will tho failure affect tho mining
interess?
Mr. 0.-Yery disaRtrous1y, should judge.
All utinoss sre bcggars or borrowers, md thoy
afedeppndont on Homo credit institution for iundS.
In California and Nevada II thoy have no dealings
with tile Bank OF California they probably have
With otter institutions connected with 1t or af-
fcctcd by it. or cottlso there othor banks NH
10 obltgca to contract, and this will b1lng hatd-
chip on tho miners.
K.-IIow about tho hnlf-doyoiopcd miucs2
Air. G,-Oh thers ara OF course, many 1nncB
vhIc,, promise we'll and nro being helped on by
capital. should think that they wonld have,
in Inoat caaes, 10 stop operations: -.
K,-Evcn tho prosperous and paying mt1es
hase to do busincss through the banks' do they
not? ..-.. ...
lii. n-yea, bus tho failure cannot greatly
affect auy mine that ID taking out bullion enough
to more thsn pay sli e1nenses.
R,-Wlll tho failure AFFECT tho merchants aud
tfadesncn generally much :?
Mr. G.-Weil yos; ~ ona way. California
buys great many goods from NGW York, and OF
course It will hurt that trado but tAen i IL to
bo considered that tho great State of caifoTnls:
tio population OF Illinois, and consequently tho
affect on Now Yo,k aud the East cannot bo very
great.
Enelsb: They arc more largely Interested
In Ca'1foruia than oycn Now York or the East.
Their capital In in almost overy great outerprlno,
eud nsy VII OF ona 20 &c y
to. long ttns boon ambitious to have dra|ingR
direct With England. They Aavs shipped thor
wheat aud other products direct to Liverpool,
and hayo bought and dealt in English goods even
would for American Articles. In this way they
have built up trade with England which IL
mora important and more highly priced than
their connection with tue East. t4unk that tue
eyer Of disaster there mag DO Ia the failure.
H,-What do yon understand 10 lavo been the
immediate cause Of tho failure Of the bank3
Mr. d.--1u the first place. thc institution WAS
IA*,ir {r N1H f1FT n
Tho ounesa OF Stockholders did not conlluo
themselves 10, or even deal Chiefly in. tho Loud
ius of money OH pnonrr security. 4hoy bTanched
nnt .i,;ch more widely, aud ahpited TO own
cYr,ytaiug, When . scllelnq looked promising
tiny Nu1s not content to loan monoy on lt-thoy
bought II, In this way they bocame poaseasors Of
gold ilela Of quicksilver lnlnos of siivor ipnes:
md At aly other business prupcrty that seemad
to tr01llno wul. OF COURSE, they wero Hpreal
out toa mneh, and tho consequence WIS itlAs
what might hayn been expected. They never
did a sasa conBeryatiyo line Of banking business
nt all.
I.--Eesiaca that, understand that tho o1jcsra
--tsnoeihily Nsl4tuu-woro oxiT&Yagant In thar
expenditures.
atr. u,-Eslstop h,l tl,s nspas of being 1eok-
less ptIHon ~ hIs 1crsnpa expenditures. aud M
.Money.
ll-Ihs purchasing Of property vus In part
owing 10 tho fact that skn concern waa 4 State
bank, and not National, %ea it poti
der tho National BahliD6 Iaw, they could not
hav% !o,lo ~ tilny ha1e.
N.-After AZ. n. tiaee, tho real aues.ion IL
connection Win the failure j., rl,olter tho fall
bIr. 1.-1 should aRs tint tlerb xaa not tho
losst dangor of it At all. The fart shAt tha Ia
cjtic coast is not commercially ennnepte4 With
tAo East at MI closely prevents that.
8. ". RAWsoN.
Mr., 4, w, Rawso1l. President Of the Untno
T1ut Company, hst persp'rlng In lis pE!slto
eaico xheq Tho reporter eHtsJed.
.Iluw ia It, hlr. n4waon, inquired TUE Thln-
usr rcpresent stiye, ~ with the Union Trust Com
phny to-day7"
"As usual, replied tho banker, pointing anil
tpgIy " tho 1ow pl psoplo In thp outer p63cs,
waiting to be ser7ed.
"You do not appear to bo much Affected BY
thu news os the extensive future On tbs Pacific
SLOPE"
.:way slouli II Our bank h&a nssor had
AuY dealings with ths Bank Of Galifornls, and
very Lttle in fact, with any sAn Francisco
"Wha. will bo the effect Of the failure lt'
'.lt will positlvely hare uo sfIcct. Tho pn)y
bank that could, under ranyf!IeuiIntanccs, he III
iuret ls The union National: nhieh hu trans
ssted all its businers llcrs but tie Union M.
nuna Las already stttea TINT it is not aasctcd,.
"itox do you tlylk the New York bauks will
ataud tho failure 7"
The refetiaus besweep New York aqd Han
Francisco are, 1t 10 true. auch cioesr thai, he-
tween Chicago aud tho latter city, hut it in not
prQLable tAkt Ulass than tWo OF thrse drma will
Jose An,thIng."
Then .Aars can bs no fear OF general
pAuic I"
"Nope in tho lcsat.~ .....
"Yhe Gauss Of the failure ~ sstd 10 bare bsen
too great speculation III mining stocks"
"Ihat e just it. Everybody in California
specalstss-.n'srshsuts, lawyers. bankers. suu
netubsss pt esssy psVfta.iou. Al the head of
them u, in TILL IooAstdy baslnqss, stands tue
B.uk u Calsfosuls.u Il wAs tug backbone Of
sitrulatiol ln that State, md, Indeed. upon ths
whole Pacific hlopo. tlluk that the failure
Mil result for good. i will cause return 10
ths sloHer, steal1es, and safer mctAesls Of ac.
cuinnlAtlux money. t,atltutops Of 10 Bress q
fixs ~ the Bank Of CaliforltA Ata dangerous to
any community. and It s better for tue general
good tlas they shold not exist"
AltsE IAia o.AcuaI utiessAca tbs haDkek TUNED