The St. Cloud journal. [volume] (St. Cloud, Minn.) 1866-1876, 1875-09-02
R0LST0N /, THE MI NEY
KING!

lR0LST0N, THE M NEY
KING
SKETCH or HIS CAREER.
HIS DARING IN THE STOCK MARK.
s ss: .z@ EFT. .
HIS y AGN sI0ENT sTxLE OF LIVING.
RA.s.oN's ADVENT IN FRISCO.
Having been a steamboat clerk on
the Mississippi, and steamship agent
at Panama, sabout1854 he went to
San Francisco as cashier for Garrison
4 Fretz, propretors Of the Nicaragua
steamship line. He was keen.wit-
ted, money-making young man, and
soon had amassed enough'to embark
in business as q banker,-:junior part
ner in the firm Of Fretz & Ralston,
which old Californians yet remember.
The firm was prosperous under his
management, and, subsequently, con-
tinued It's prosperous career as Dono-
hue, Ralston & Go. In, 1854 Raj:
ston took active steps for ,..;s,s
THE Es',ABL1sHMENr OF T6E MONSTER
| EANx, - 7;-'@>''. =:
that should Gas for ten! years it did,
control the entire business Of the Pa
ci6c Coast, by organizing the Bank
Of California. Such was his address
and such the prestige he had already
acquired that the $2,500,000 capital
stock was soon all subscribed for, and
the bank with the largest capital of
any financial institution d the coast
began business. The heaviest CAPT
talists were miners !; the heaviest cap
ital was needed for the Development
Iof the mines It was the era. Of the
deepening Of shafts in the Washoe
region and of the improved and: ez-
pensive 'stamp-mills, and ore-reduc-
ton works Ralston extended aid to
several of the mines; bought for the
bank controlling interests in a num-
Der used the capital Of the bank in
developing the mines, and q !"
I 80 .: - MADE 4 s7r1KE. = :>' ''#
| =. %.:&>t} ~ ~ rig !s>.<i~~ ..s..y !
| Within q year after its organization
the capital stock Of the bank was in
creased to. $4,000, 900, and subscribers
to the .$2,500,O00 ADDITIONAL stock
were charged a bonus Of 25 per cent.
for the privilege of;taking the stock,
to be. paid up in full. At that rase,
such had been the success ofRalston's
management in developing the Neva-
da and other mines, the, entire two
and q half millions were quickly ia
ken, and before thesclose of che year
the stock of the bank was quoted at
40, with no sellers. w.:
SHARON IS RA1sIoN pRorEaG.
About this time it was that WI.
liam Sharon, who had lost everything
in disastrous mining speculat:ons,
was, by Ralston, placed in charge :: 81
the Interests Of the bank at Virginia
City, more especially of its interests
in the famous Yellow Jacket; mine
From that time dates the. colossal for.
tune Of Senator Sharon, who within
one year after his appointment as
agent Of the bank BY. Ralston had
made $500, 000., And fromthat time
did Sharon become the firm ally o.
Ralston in the tremendous specrla
ton upon which the latter soon enter
ed. With 100000 paid.up capita,
at his command sfor though only
Cashier, from the outset Ralston di
recoed the affairs of the bank,9 anc
with the prestige Of the extraordinarJ
..strikes" made in the Nevada mine
operations, = !. ss,>...
ERA,loNs.
Safeguarding had. already attained
tremendous proportions on the coast
with the enormous capital at h!
: command, Ralston embarked in it, o,
the theory that FIVE millions coule
any time beat a hundred thousand, l.
halfmillion, or a million even; aat
it did. He could sell short, coul(
tighten the money market, and squeeze
holders Of stocks TO bear down til,
price and rake in the margins 81
could then declare dividends and 9th
erwise bull the stocks and unload
The bank was naturally made the de
pository of the mines it aided in de
veloping. Perceiving the immens
power it welded, operators Of course
cultivated its good offices by p1acin@
their accounts there. Business mel
who wanted the support. Of the i'm
mense financial power; FASTENED It,
also place their. deposits with wi til!
Bank, and soon I the deposit accooiun
u the bank was the largest in I'll,
United States. 1t has been trenep.
dously exaggerated, but probably u: 70,
the year preceding the suspension i
averaged $10,ooo,ooo to $4,000, 900
which, with the paid:up capital, made
the aggregate fund at Ralsson's dis
posal from $15,0oo,ooO to ST., 900,
IOOO. in tr0ld. Y 81. a. -: t;;sL;*>