Los Angeles herald., 1890-12-10
TURKEY AND, FINANCE.
BANKERS DISCUSS BOTH SUBJECTS
LAST NIGHT.
House Association-A Fine Paper Read
by Mr.. A. D. Childress.

Seventeen millionaires in a dining
room at the Nadeau last night cele-
brated the December gathering of the
Clearinghouse association.
The banquet was one calculated to
please set of bankers. Every dish was
la financier; sight drafts, but no over
drafts, on the claret and champagne
were duly honored there were no pro-
tests except at the necessity of parting
collections of good stories were easy, the
only discount was that on some of the
Sunday-school narratives told by Presi-
dent E. f. Spence, and as each partici-
pant rose to his feet at the close of the
festivities he easily struck balance.
A very interesting paper was read by
w. G. Bosbyshell, of the Southern Cali
fornia National bank, on General
Banking Interests of Los Angeles as co m
pared with Omaha and other more east
ern cities"
This was followed by paper, which
needs no encomium, by A. W. Childress
From it are taken the following excerpts :
Looking backward over period of
five years, which constitute my stay and
residence in this glorious climate and
country, am struck with astonishment
in the contemplation and realization Of
its phenomenal growth and develop
ment, financial and otherwise.
From town of 22,500 population in
the summer of 'S5 as shown by a local
census taken and suppressed by proud
taxpayers, who boasted to the world of
double that number of souls, Los An
geles has grown to be the second city of
California, with over $4,000 people
within her properly defined and consti-
tuted borders and suburbs.
within the same period of time Los
Angeles county, in the same ratio of
population, has increased in taxable
wealth from $32, ,736,000 to $67, ,121 800.
In the past decade the population of the
county has increased from 25,000 to
10L, 1850, and its taxable wealth from
$1S,503, ,733 to $67, III 900, while the in
crease in population is something to be
proud of and marvel at.
''In July, 1885, there were only four
commercial banks in Los Angeles, hav-
ing total capital of 100000, with sur
plus of 100000.
''The combined deposits of the four
banks amounted to $3,12S, 900, whereas
in July of this year (1S90), the number
of commercial banks has increased to
twelve, with a combined capital OF over
So 100000, combined surplus of over
ST 800, 900, and the enormous sum of
So, l4l 900 of deposits.
Besides the twelve commercial banks
there are at present five prospero us saw
ings banks, with total capital and sur
plus of $340, 900, and combined deposits
OF 81 400, 900, as against two institutions
in July, 1885, with a total capital of only
1000, and deposits of only $145, 900.
'These figures show the gratifying in
crease of banking capital within the past
five years to be $3,5O0,00 with the cor
responding increase of deposits of over
$3,300,000.
"This great increase in the number
and wealth Of banking institutions, to-
gether with the large accumulation OF
deposits, true indices of growth and
development, would puzzle the stranger
to believe such thing as bursted
BOOM
Regarding improvements in banking,
the speaker said:
''We should all adopt rules requiring
customers to meet their paper promptly
at maturity, on penalty of being denied
future accommodations.
"This rule rigidly enforced would en-
able us to rely on the contents of our
portfolios in times of emergency.
"We should also protect ourselves
against "kiters," accommodation bor-
rOwers and all-round bank customers,
who open an account with one bank by
a three-day loan one month, and close
it in the next by similar transaction
with another institution. The city is
literally infested with such so-called
depositors. We should require regular
borrowers to maintain credit balances
equal to fair percentage of their accu
mutations.
ga great growing evil which should
be suppressed is the enormous amount
ofgratuitous work done by us for our Gus
toners.
''The necessity of state association
for the purpose of bringing financiers to-
gether for discussions of questions of
vital Importance to their own success
and the states advancement and pros
perity is clearly shown by such enact
ments upon the statute books as the
mortgage tax law, ct al. Il
'The fact that the removal Of G5000,-
600 of gold by Russia from the Barings
should make them fail and cause the
banks of England, Ireland, France and
Germany to be called to the rescue to
meet $4,000, 900 acceptances payable in
gold, shows conclusively that the single
standard gold policy of England has been
badly shaken up, and that bimetalism
will soon be the policy of the world.
''In conclusion trust have strength
ened your convictions in this discon-
nected paper, that tits best for bankers
to dwell together in unity
The guests were as follows: H. w.
Hellman, John Miner, George H. Stew
ant, S. B. Dewey, E. F. Spence, II. 7. s..
Hammond, F. G. Howes, w. Gilleland.
w. G. Bosbyshell, G. N. Flint, George
L. Arnold, d. o. Miltimore, A. D. Chill
dress, r. G. Lunt, j. Frankenfield, E.
w. Jones and Perry Wildman.
HE WENT IIMMINC