Los Angeles herald., 1890-06-05
SOMETHING ABOUT OUR BANKS-OPIN-
IONS OF COMMISSIONER POTTS.

An interview Yesterday with Bank
Commissioner Potts, who is now in the
city, disclosed some interesting facts
which are of sufficient Importance to be
embodied in an editorial article. Some
time ago this journal called attention to
the loose manner in which some of our
financial institutions have been IN the
habit of preparing their statements in
regard to the county moneys, including
these funds, which the attorney-general
has decided should be special deposit,
in their reckoning of assets. Mr.. Potts
informs us that, in their last reports,
this irregularity has been remedied, and
the statements embody the facts
of the case, reading $50 much due
to depositors, so much due to
Los Angeles county" The COM
missioner admits that the body of which
he is member has not been as exact
ing in it's insistence upon the carrying
out of the law as it should have been,
but says that in the future the law will
be rigidly observed, and that the banks
w
ty's moneys have already fallen into
line. 1t is Just as we'll that the lawful
and wholesome custom should be at
once inaugurated. While the county
and the public have escaped danger in
the present, it does not follow that they
would always do so. The commission
itself has been as derelict as the banks,
as Mr.. Potts admits, so that honors ale
easy.
A bad practice cannot be too soon
abolished. 1t is the first bad step that
leads to disaster. The celebrated Vir-
gillian line will recur to most people in
this connection.
Dismissing the admonitory portion OF
this screed, it gives the HERALD great
pleasure to say that Commissioner Potts
reports the banks of Los Angeles county
as in state of exceptional strength.
His opinion is that they are entirely toe
conservatively managed for the ordinary
conditions of profitable banking. He
has no hesitation in saying that there
are million and half dollars in the
bank vaults of Los Angeles available fol
loaning, one-half of which could be re.
leased, leaving with them far more mar.
gin of security than prevails in any
other portion of California.
Another feature of Mr.. Potts's obser.
vation of the lower country is the ra.
pidity with which capital is pouring
! T,1,
of the banks are swelling all over this
section, and at an unprecedented rate
The banks of San Diego and Santa Ana
and all the southern banks generally
show this gratifying tendency.
Mr.. Potts thinks that our local bank.
ers have missed many opportunities o.
profit through the exaction of high rates
of interest not justified by the circum
stances. In the counties of Los Angeles
San Bernardino and San Diego, the
German Savings and Loan Society OF
San Francisco have fully 100000
loaned out, 100000 of which is placed
in Los Angeles county. The Savings
Union of San Francisco loaned Dick
Glrd, OF tne CnlnO rancn, S0UO,OUU on
that fine property. Under a more
genial and intelligent system Of banking
much of this interest money would have
been kept at home.
Mr.. Potts has no hesitation in saying
that the outlook for Los Angeles was
never better than now. AS he has been
lately all over the state, and as his du.
ties compel him to traverse it contin-
ually, his judgment is worthy not only
of being recorded, but of the serious
consideration of our people.