The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1875-09-03
THE BANK of CALIFORNIA.

CHANGE BANK OPEEED-A LARGE AMOUNT OF
DEPOSITS.
SAN FRANCISCO, Sept. 2 1875.
Everything learned to-day concerning the Bank OF
California confirms previous kilograms about its early
resumption Of business The small iron door that has
been bolted and barred and guarded by two attaches
was to-day thrown open and a free passage
accorded to all who had business with the bank.
understand they paid anxious depostor Sl1, OOO
The panic is at an end and the city gay. general
meeting of the Stock Board is called for tomorrow
decide upon the day of its opening
THK UNITED BRANCH MINT.
In addition TO the disbursements by the United States
Treasury the United States Branch Mint in this city,
will be ready TO issue about S. 100000 coin in few
days.
THE ORIENTAL BANK LONDON
There Is to believe that the directors OF the
Bank of California endeavoring to effect
rangement with the Oriental Bank of London, looking
to assistance from that quarter.
RELIEVED FROM LIABILITY
Mr.. D. o. Mills authorizes the statement that capt.
alists interested in the Bank OF California will obtain
transfers of stock from the stockholders relieving them
from liability and guaranteeing them against loss and
will subscribe the funds necessary to place
the bank in a condition to pay all demands
and put II sound basis Should any
surplus arise in the settlement It will BIO credited pro
rata to the stockholders This arrangement will so
into effect in a few days
THE MERCHANTS EXCHANGE s8cK.
The Merchants Exchange Bank opened this morning
with coin enough to pay off every dollar Of its oblga
tons. There excitement whatever during the
day. The deposits largely exceeded the money drawn
HALF FUNDS
Director Linderman, of the United States Mint has
transferred $500,oo0 of Mint funds to the credit
of the Sub-Treasurer who has placed the
same for the benefit of the banks They have placed
a similar amount to the credit Of tho government
in New York. OF the 100000 paid out
to-day the Anglo California Bank gets 5000 00O
the Merchants Exchange Bank 5000, 900, and tho
London and San Francisco Bank for a bank in
Portland, $50 000 There is still over ST 000 600 coin
in the bullion fund of tho Mint subject to draft
of the Superintendent for the purchase of bullion
Most of this amount will find its way into the
market through the sale of bullion to the Mint
There very active demand for money at all the
banks to-day but up the hour of closing the supply
equal to the demand.
Depositors are transacting usual business.
RUMoRs OF SYNDICATE.
The latest report in regard TO the bank Is that
effort is being made by tho leading stockholders of the
suspended bank to establish institution under
syndicate to take possession of the assets and com
promise the obligations of the old bank
BEFORE TIE sToRMS-BEGINNING OF THE CRASH
HOW IT WAS MADE.
The San Francisco journals of Thursday, August &C.
tell the story of the events just preceding the failure of
the Bank of California On that day everybody was
seeking for coin and to be had. 1t locked
up in keeping for the new Bank of Nevada Sharon and
the of the Bank California crowd had been badly
whipped on Ophr mining stock. Senator Jones
also interested with the bank 'crowd" Negotiations
were making for the transfer of mills to the Flood,
o'Brien and Mackey 'crowd."
sPoILrNG A
The rupture grew out Of the negotiation for the mills
in question. Not that would not have in other
ways for Flood o'Brien said to have been spoil
ing for a fight for a month two past but
that served as the immediate cause. Flood
Il o'Bren would have been glad to pur-
chase, and month ago considered the
bargain good as made few days ago occurred the
final dicker for the property 1t took place at the Bank
of California Mr.. Ralston and Senator Jones repre-
senting the bank ring and Mr. Mackey appearing in be-
half of Flood o'Brien. The mill owners offered the
property at $500, 900 their nnality.
'sWhat's the use" said Mr. Mackey Indignantly, "of
paying $500 900 for property worth only 500 OOO2"
To unctuous simile, the fat was in the fire at
''You see" said Senator Jones. turning to Mr.. Rails
ton 'that
FLOOD o'BRIEN WILL NEVER BE SATISFIED
unless they get possession of everything"
Mr. Mackey, TO whose principals the question of war
or peace was not vital one, declined to waste more
words the matter but at left the place of
ference. The condition of armed neutrality, otherwise
called 'ruce u was at an end, and declared
without tho usual formula 1t was mutually understood
that 0phr TO be the object and turning point ofhe
contest 1t is needed by Flood 0'Bren being adj
jacent to California and constituting broken link in
the chain OF mines-begnning with Mexican and going
south-which they desire to control To get possession
Of Ophr the bank crowd must be made to let go Of it,
which likely to be no easy matter the capitalists of
California street regarding it with fond feeling which
its dividends have never justified The only way to
complsh the purpose was to make
A TIGHT MONEY MARKET,
and this strngency they proceeded to bring about by
all the cunning strategy known to great capitalists and
expert hnancierS They said to have been engaged
in tightening the strings for the last three weeks All
their stock transactions have been shaped that end
Every knows that the money market needs no art
fetal aids to strngency at this time of year. The cash
is largely In the country for the purpose OF "movng
the CROP" The financial needs Of commercial men in
the city large Beside this the drain of gold the
East has been heavy for several months past and only
diminished quite recently the shipments last week
is supposed TO be necessary to make the local market
easy When 81, 600 900 or S. 600 600 are withdrawn
its absence ia seriously felt But Flood O'Bren are
supposed 10 have actual deposit and locked up In
various ways hereafter to be explained not far short of
$l0,00O,00o
The establishment of their new bank with i'm
mense capital and q large amount of ready money
t0I Jne use Ol OOTTOWeIS aHOTueu flOOu " y Brlen
the opportunity which they desired of with
drawing money from circulation. They first began
to loan with less freedom. Then they COM
menced to supply the public hungerng for stocks and
expecting big deal in the fall, with all the shares
they could stagger under, thus absorbing private
boards drawn from savings banks and old stockings
Everybody who wanted California and Best & BeIcher
allowed to have IL TO safety The sales Of Califor
MIA have been immense, 10000 shares having been
thrown on the market within a month by brokers In
the confidence Of the Bonanza kings. Last week they
drew from the Bank of California 81 500 600 which they
had and ndtr,rt ho
coin. This they placed a special deposit with Dono
hoe, Kelly Co. The expectation that the bank
ring, presumed to have great liabilities, and TO be keep
ing In their vaults an immense amount of certificates
of favorte stocks, which they could not ready
money in case of need, would be compelled to throw
them ALL and especially the coveted Ophlr, tho
market The expectations realized. Money be-
from day to day. The Bank Of California
began contract and shorten its loans and ask its
stock operating customers for money. The cash
slow in coming Then they began, through their
brokers' Woods h E6eeborn, TO manipulate little