Daily Los Angeles herald., 1878-09-10

Sy42,63t 10
It will be seen by this statement
that the bauk has of cash on hand
and with its correspondents nearly
forty per cent. Of the amount of
its deposits, or $152. .s97. 80 of avail
able money, against 1896, ,233.1S of
deposits. This is an enormous
amount of money for a bank to
carry against its call liabilities; but
it is deemed necessary as q pre-
caution to do so, especially at a
time when the institution is being
assaiIed by secret and unscrupu-
lous enemies, whose open work. is
done by irresponsible parties, both
here and in San Francisco. The
large amount of cash carried
by the bank is a healthful
sign for the institution,
but 1t works very detrimentally to
the business interests of this city.
If it were not for the groundless as
saults referred to, a large propor-
tion Of that money would be in le-
gitimate circulation, relieving the
financial pressure of business 10
that i'm portant extent. This is the
kind Of harm which these vicious
assaults are making. They do not
hurt the bank, but they hurt the
people. In this connection we may
say that we have examined pri-
vate correspondence between the
Farmers and Merchants' Bank
and two of the leading financial
institutions. of San Francisco. The
first letter is from the Bank of Cal
ifornia, and acknowledges the re-
ceipt of the circular attacking the
credit of the Farmers and Mer-
chants' Bank of this city,. 1t says
the circular is beneath notice, and
then offers to afford the F. & NJ.
Bank all the accommodation it
may require. 1t further says
"there is no truth in the statement
that your bank is in our debt; on
the contrary, it has had credit
balance with us for several months,
and at times large sums. Shoulp'
you require funds at any time your
telegram will be duly honored." A
bank whose credit is on this footing
with leading financial institution
in the commercial capital may be
trusted implicitly. The second let
ter ls from the First National Gold
Bank of San Francisco, which says
that the F. Il M. Bank can draw
for $50, 900, in addition to the large
balance In its favor, at any mo-
ment. Mr.. Hellman himself as
sures us that he can at any moment
draw for $3.50, 600 on San Fra ncisco
and New York on his own personal
account. We have in this CORES.
pondence, as we'll as the known
personal credit of Mr.. Hellman, a
q bond of solvency which would
meet on the nall two dol
lars for every one of the de-
posit liabilities of the Farm
| ers' and Merchants Bank. How
futile then, 1t is to attempt to III.
jure q bank of this standing and
capacity in the estimation of SEN
sible people. With the official in
formation before us, and knowing
as we do the malicious motives of
those who are trying to raise q
false public impression against this
bank, we are greatly astonished at
the temerity of the men who
would thus attempt so criminal
and so impossible task. In the
face of the flood Of false rumors
started by those men, the President
of the Farmers and Merchants
Bank thought 1t proper to write to
the State Bank Commissioners and
ask them to come here to officially
examine the standing of the con-
cern. The first request was made
Immediately after the publication
in the Golden Era, and in the fol-
lowing terms:
Los ANGELES, July II, 1873.
Sir,-While our bank is strictly
commercial. institution, and does
not come under the head of Saw
Iing's Banks, nevertheless I invite
your Honorable Body to grant, at
your earliest convenience, a strict
examination into its affairs, being
willing even to pay any reasonable
tax for travelling expenses, should
the allowance made by the State
for that purpose not be sufficient
or attainable at once. f
/. w. HELLMAN. +
This letter was answered on the
Gath of the same month by Com
missioner Coleman, who says thai
tone or moie of the Commissions
srs will visit your bank for exam.
Iinafi0n -aa s0on AZ their dufies eIse.