Los Angeles daily herald., 1876-03-07
Bank Commissioner.

The bill TO create the office OF Bank
Commissioner does not appear to be
favorite with the majority in the Leg
islature. It's unpopularity is perhaps
due to the influence of banks and
bankers ON members of the two Houses
and the fact that this influence is man
Tested ought, and no doubt viii. be ac-
cepted by the people as evidence that
there are a good many banks in Cali
forpia whose credit would not be
strengthened by pubic statement OF
their actual condition. A sound bank
-one conducted on fair basis and
governed by honest principles, has no
cause to fear Bank Commissioner,
and will not spend moneyin lobbying
to delaat bill providing for the ap-
pointment of such an officer. In op-
posing the Bank Commissioners bill
members of She Legislature are adding
nothing to their popularity with the
people, nor are they placing themselves
entirely without the pale of suspicion
that their opposition is due to the in
fiuence originating only from a con-
yiction of right. The theory that
banks are private property, of the real
value and standing of which the public
have no right to information other
than that the managers see tit to give,
is false and dangerous. The broker
who buys and sells with his own
money may use this argument with
effect. But the bank which receives
denosits and becomes the custodian OF
the funds of all who through its own
showing feel sufficient confidence in
it to acc apt its certificate is an estab-
,isbn. .ert of The financial status aad
strength of which every one who has
deposited or is liable to deposit dol
lar in its vault has right to know. 1t
is not private concern because IL
does business with the pubiie's money
On what principle Of law do bali
dozen individuals become the keepers
of the peoples money without giving
satisfactory security that the funds
will be returned when called for? :?
How are depositors 10 know that the
security is satisfactory, unless the guar
antee comes from disinterested party
who has the legal right to know where
of he speaks? A private loan cannot
be obtained on the bare assertion of
the would be borrower that he is a safe
person to loan money to. The mere
statement that he owns block OF
buildinoa and few thousand
acres of land will not sufilce.
Before the eoin is handed over the
records must he examined aud
deeds a;Id mortgages overiiauled. The
Bank Commissioner, if we had one,
would be to tine depositor what the
Searcher of Records and Deeds is to
the money lender--a medium through
which assertion is verified or dis
nroved An honest, efficient Commits
sioner wot'd affirm or deny what the
banks assert, lie would be the moni-
tor by Which the people would De
guided in seeking a deposit for Inc
money. With such COMMISSIONER
the books of bank would not remain
unposted for two or three years. Peo-
ple would not be robbed of their little
all up to the moment when with i'm
mense liabilities, worthless assets,
scores of protested drafts, disordered
books and empty vaults, q bank closed
it's doors forever. A Bank Cominis-
sioner would save the poor-those who
can lily afford to lose-fro 'o's. Ia
hank was weak and unsafe, the Com
missioner would lnow it, and through