The New York herald., 1875-08-28

dent OF the bank, drove team the plains
Ralsion, the now president, who has been living in
palaiial spendor, TO the Pacific slope the
agent OF Garrson's line Of steamers. He made
secretary OF the bank first, and then president.
He backed Quicksilver heavily, and held up the 'sbg
bonanza" In fact IL was well known on the Pacific
coast that II you could get the Bank Of California to
back any scheme IL was succeed Why look at
his palace He bought 1t Of Sharon, and a short time
ago, when this trouble first on Sharon bought
back. That's the story the Slope. Sharon owns
now-you bet"
EXPERIENCE or A LEADING BANKER
One OF the leading bankers asked what effect the
failure would have on the New York market
He said:-"Well, ON Thursday, at a quarter to three
7. NJ, was on the New York Stock Exchange, and
order rushed by me to execute orders to all stocks
moment after heard from him that the Bank of Cali
forna had iaed or would close in the morning; that
there the bank and its available securities
were exhausted. Yesterday morning (Friday) an at
tack was made upon Western Union Telegraph
stock. Gould's brokers' under orders bought 20 600
shares and put the stock back the list the opening
hgures Then 1t was watched all day that it should
not fall off, and 1t did 1t may be interesting to you
TO know that Ralston, the President OF the Bank
of California and Sharon, were the men who started
the National Telegraph Company, an opposition
the Western Union AT the Stock Exchange the short
interest was large before the confirmation Of the news
OF the failure OF the bank came Friday morning
but largely Increased during the day Sellers the
cline on the opening Of the Board specializing
the capitalists took that opportunity absorb large
amounts OF stock The operators who sold the de-
cline will probably find ON Saturday that they have
made serious mistake, for the failure of the Bank of
California will not materially alter the prices
stock list
Had this failure been announced in the middle
of the days business there might have been quite
stampede; but its being in the morning papers, before
business commenced, gave the shrewdcst operators
time for thought They concluded that Cali
forna was entirely distinct from our
market that there for any material de-
cline in railroad stocks in view Of the large crops
in the West and the very decided revival of bus
ness in New York; that revival in trade is going to give
the railway cars return freight where heretofore they
have been running westward empty. AS that return
freight will largely increase the net earnings OF
the railroads, you that while the
operations Of the Bank of California was largely based
speculations in mines, in which few of the people in
this part of the country interested there could
be no doubt that the losses by that failure fall al
most entirely upon the people of the Pacific coast,
and, OF course, 1t have nothing to do with the
value of our railway securities
That the first effect Of such startling news should be
to unsste business matters somewhat is surpris-
ing, in view of the past condition of business affairs
But sober second thought will lead the people on the
Atlantic coast to that there is nothing in this
calculated to disturb the confidence already felt that
have passed the crisis of depression in this section OF
the country and are now entering upon better times.
REPoRTER-Do you know anything about the real
status of Messrs. Ladlaw & Co. ?
BASKER--I have heard that they have signed their
firm to bills Of exchange ''agents' OF the Bank
of California and that when that bank elegraphed TO
them to close their doors, they refused to do it.
AS matter of course the general inquiry through
out the 'street'' was, What DO the Segmans say 7"
AS that house represents the principal banking interests
of Germany this country, and its books show large
credits due to wealthy residents abroad the the
senior member of the firm, Mr.. Joseph p seligman,
were eagerly sought for and when given freely passed
Change, tending to the confidence which had
been for short time severely shaken. He said -
''There Is no necessity for any alarm here,
the worst has passed We have heard the
news, and it has been already discounted. This
firm has banking house in San Francisco, California
known throughout the world the Anglo Californian
Bank Our correspondents and agents there keep us
thoroughly posted. We in constant receipt of
covering all operations of the several banks and
the operations of the principal dealers In
SlOckS ON tnat EACuange. IN our opinion,
the State of California was never in a better
financial condition than it is at present. Business is
prosperous the merchants receiving regular orders
for goods for the fall trade-not in large bills which
they cannot meet but in amounts which enable them
to keep up their stocks and for which they have ample
means to pay. The mines are yielding largely and
warrant the improvements which are being made. The
failure of this bank cannot be attributed anything
ese in our opinion, than to the reckless and WIDE
spread speculation which has characterized its
management 1t has failed because the
officers of the bank have allowed its secu-
rites to be locked up in these reckless
specuatons. Its result may be panic of more less
severity among the people the Pacific coast, but it
will be felt more among the borrowers of money there
than will be felt here for Mr. Ralson has had the
of making very liberal terms How that is
cannot say. 1t is not likely, in my opinion, that the
bank will resume"