, 1875-08-28

Tho collapse Of the Bank OF California has
produced a sensation exceeding TINT caused
by tho failuro Of DUNCAN, SHERMAN i Co.
month ago. The Bank Of California WIS
private bank, chartered by the State OF Cali-
fornia, and issuod no notes. It had capital
Of S5,00O,0 900, aud deposits varying from
$1,000. 600 to :0,00o,0o0. The deposits may
have been reduced within tho last sixty days,
as tho bank has had persistent And unrelent-
ing enemies, who have been actively engaged
for eomo tamo in weakening its credit aud
seeking its overthrow. The credit Of tho
bnnA WAS openly attacked In tho local papers
within week before its failure.
The failure Of this bank IL another, tho
latest, mud costly vcrilcation of the rule
TINT no bank can engago in speculation, or in
any othor business than that Of strict and
legitimate banking, witl.ont certain failure.
Tho Bank of California Is but repetition Of
tho cases OF jar CooKE Il Co., HExnx C1Ews,
DUNCAN, SHERMAN t. Co., and Il. F. ALLEN.
Precisely the same causes in each case Aave
produced precisely the same results.
Tho Bank Of California has beon identified
with the history Of tho stato. It waa found
cd by Woodworking, Rkillfu1 msn, who wero
keenly alivo to the prospect opened before
them. It was originally organized to secure
the business Of the mines. Wherever gold
was discovered, mine opened, and Bettlo-
,nont made, the bank instantly had an agency
there, thereby securing It's business and de-
posjts.
In time, the mining districts Of California
were studded with tho ngancics Of the Dank
OF California gathering up tho treasure and
making the bank tho great factor Of the peo-
pie. It at once closely identified itsof with
the transportation companies MI through the
State, anu all were contributing TO tie bust
ness Of tho bank. The institution was pros
porous from tho beginning. Its ownery b.
came rich, aud their ambition found now aud
other folda for operation. It grasped con-
troll Of tho commerce of the Pacific Coast.
It secured monopoly Of the quicksilver pro
duction. It entered into the business OF
buying mining stocks, and played bull or
boar, aa circumstances demanded. It ex-
tended it's operations to Oregon, British Co.
fur trade in Alaska 1t erected itself into q
financial despot. It controlled the grim
market 1t dictated to a1l tho other banks j;
it rogulated the rates Of discount and tho
terma on Which loans were made. It crushed
merchants and bankers remorselessly. It, In
opn way or tho other, controlled the trade
with Japan and China, and the importa-
tion Of teas. The whole coast trade and that
with the Sandwich 1alands was under ita
command. It was universally fearod and
hated, but It deded all opposition. 1ts busi-
nesa with England waa immense, and It lad
also large transactions with France. It made
the foreign exchange for California and oil
the Pacific States, and for tho Sandwich
Islands, mud for the japan and China trade
done through San Francisco. It had cor.
respondents and financial agents In al coun'
trios. It included in it's operations Neyada
ovor which It exercised as great control as
ovor California It put up tho price Of stock
and lowered them at pleasure; 1t bought
and sold grcenbacks; 1t dealt In all manner oi
appreciated and uncusrtnt securities. II
went heavily into railroad construction. Ii
fact, there was no hranch Of business IN
which tho bank did not engage. It employed
IN army Of subosdinates. II made 1neu rich
or ruined them, o. will. 1t embarked exteu.
siyely in politics, and recently II organized {
party Of its own, and nominated an entirel,
new ticket OF its own selection.
Mr. nAisrox WAS at tho head OF the CON
pany which owna tho wator supply Of III
City Of San Francisco his associates we1
In tho bank, and the money invested VIC
that Of tho bank. lie Las been trying fc
soma time to sell the franchise and the Who'll
property to the atty for the sum OF $4,000
900.
OF course, ths propriators became in
mensely rich. RAts1oA, the President, 1.-Two
in style equa1ed BY fow Princes in Europe
J This Bay OF Ban Francisco was lined with th
. country sasts Of the financial uabobs. Thss
country aeats, Of summer rsaidonoss, We,
| msguiaaantly provided with srsEylh4ns u.