National Republican. (Washington City (D.C.)) 1872-1888, 1875-08-28

uOuuS IOttcu W Tue core. fre6lQenL hdl-
ston frankly states that the directors have
no expectation or intention of resum-
ing business. 1t is the old story of
plenty Of assets not Immediately avail
able, but which, if carefully handled,
will pay dollar for dollar
This means utter rottenness and decay
Of the banking feature of the concern. The
speculative ventures that are worth having
and holding, and which have been supposed
tosbe the property of the bank. win very
Z likely turn out to be the property OF some
one else, while all the worthless husks Of
exploded or undeveloped enterprises will
probably be found duly recorded as assets
of the bank. Such is nearly always the
case when Specializing bankers go TO the
wall. They usually fail by the loss of other
peoples money. If an affair turns out
well ii is an individual thing if badly, it
belongs to the Bank. 80 a-
But, however, all these things may even.
tuste in the present instance, the failure of
the Bank of California supplemented by the
suspension of the Trust Company which
followed yesterday, cannot but prove dis
astrous to the Commercial interests Of the
Pacific coast. The panic which is sure to
accompany such affairs, and In fact which
appears to have been the immediate cause
Of the run upon the latter institution, indl.
cates waning confidence Of depositors
which must, sooner or later, cause the
strongest bank to yield. But L. happily
the panic shall prove Of short duration, the
cramping Of facilities sure to result from
the failure Of two Of the heaviest institu.
tons In the commercial metropolis Of the
Pacific States will have most chill
ling effect upon all business enterprises.
The vast crops of that whole section are
now seeking market, and these disasters
have fallen most inopportunely for their
successful and economical movement How
far prices may b. influenced 1t is yet too
early to hazard conf ecture. While we
have little sympathy for the specializing
managers of the bankrupt institution, it is
most ardently hoped that the industries and
legitimate commercial enterprises Of Cali
fornia may not be permanently or seriously
affected.
The bank was great overgrown and ar
rogant monopoly, and the wonder is that
merchants and tradesmen, knowing Of the
immense speculations in which it was en-
gagged, would entrust their deposits in its
keeping. Familiar with all the vicissitudes
and fluctuations attendant upon rail
way, steamboat and mining specu-
lations, it is incredible that they
should have believed that a bank
which was popularity supposed to
be the financial agent or owner of the Cen
tral Pacific, the Pacific Mail, the Corn Stock
Lode, and numberless other gigantic
schemes that involved millions, could be
desirable place of deposit for their capital
and profits. But the fact that they persisted
in having faith in the Bank of California, to
the last only shows what creatures of
fashion we are. Judgment is cast to the
winds, even in Commercial affairs, when
little reflection would change our course,
and we rush along with the crowd to certain
destruction,
1t is safe to avoid all banks as places of
deposit who are specializing upon their own
account. Your deposits are their specu.
lative capital if you place them in their GUS
tody. A bank of discount, exchange and
deposit is untrustworthy from the moment
that it commences speculative operations
on its own account. It's legitimate bust
ness is morally certain to keep it safe and
enable it to accumulate large sur
plus in the distant future. If it
shall venture into the broad and
ever changing fields of speculation, it may
be worth millions one day and be PENN
less bankrupt the next; but it is never
safe. 1t is more than probable that the
Bank of California has been broken by the
sudden shrinksge Of many of the stocks Of
which it was an extravagant holder. 1t
will be strange, also, If many Of our Pacific
nabobs do not 60 down with it. II they
are saved Ii will most likely be by making
the bank the scapegoat through which
they were relieved of their heaviest loads.
Later advices inform us Of the death, by
his own hand, of President Ralston yes
terday. His suicide Is marked by the same
bold, reckless character which has guided
all the speculations of the institution which
he has directed and controlled. He had
the nerve 10 enter new fields of speculation
In the great hereafter, but lacked the
courage necessary 10 stay here AMI attempt
tho e1trieation Of his affairs from their
present confusion.