The morning call., 1892-09-15
THE BANK REPORT.

The report OF the Bank Commissioner,
dated July /, and now just published. shows
that the banking capital of California on
Jaiy /, divided among commercial banks.
savings banks, private banks, national banks
and agencies of foreign banks. amounted to
S63. 565, ,00I, that the deposits amounted to
Sl9s, ,666. All. and the loans on all classes of
securities to about 500. G00.O00 in round
figures. The difference between the loans
aud deposits and capital added together is
represented by cash on hand-S19, 94. 920-
bank premises, real estate and "other
assets" In actual money the banks hold.
roughly, 10 per cent of their liabilities.
During the past year thirty-one new banks
were organized and nine went out of busi-
ness. The total number of banks now in
existence is 26S.
OF these three-ffths Q5G are State COM
mercial banks, one-fifth (ffty-fouD are saw
ings banks. and the remainder are national
banks. private banks ana agencies of for
eign commercial banks. Over two-thirds
of the banking capital employed in the State
belongs to the commercial banks. The
capital of the savings banks is about eight
millions, or one-eighth of the whole; but
ipe-eighths 0f the total deposits are In
bltoC luShkitltASs uCdllJ do ihlEO
proportion Of the loans. The San Francisco
commercial banks, with a capital of
SIS, 234, 600, have S26 $40, 900 OF deposits; the
whole Of their capital is about equal TO
their losns on personal security, and their
loans on real estate and securities are about
half as much. In the interior the CONNER
eial banks have loaned nearly all their
deposits on personal security and nearly all
Tl,a,r 81
Of the banks both in city and country indi-
Gates flourshing state of business.
The character of the business done by
our banks may be gathered from an exam
ination of one OF two leading institutions.
The Hibernia Savings Bank has a reserve
fund of nearly two millions (S1, 1856, 1861 to
meet drain. and has S4,000,000 invested in
United States bonds. Its deposits amount
to the enormous sum of S27,l74, 703. OF
this it has loaned on real estate and bonds
something less than 100000, and it car
Ties cash to the amount of about half
million. 1t pays AZ per cent TO ordinary
depositOTs. Thus it must employ the S21,-
COO, 900 it loans at a rate of interest which
will enable it to pay 4 y per cent on ST.
100000. That it does so its net earnings
last year. which were S1,166615. sufficiently
GPllnp SErate.
As types of the commercial banks we
may take the Bank of California and the
Nevada Bank of San Francisco. Both have
the same capltal-S3. 600, 000; the Nevada
has surplus of $500, 600, the California
surplus Of 81, 100000. The Nevada has a de-
pOsit line Of So. 26S, 900. the California more
than twice as much-S7. 026. OOO The Ne
vada has a discount line of something over
100000 the Callfornia's loans amount to
nearly $4,000 000. The difference between
the banks is explained by the fact that the
California had the start of the Nevada In
the business of commercial banking. The
California holds nearly two millions OF
money on hand, the Nevada nearly
million and half. A bank which holds 81
in cash for every 81 that it owes is con-
Quoted with such conservatism that at the
last it would be a matter of wonder how it
managed 10 earn dividends.