The morning call., 1893-12-05
THE RESOURCES.
How the Peoples Bank
Is Reported.
MR.. HART SUMS 1T ALL UP.
Plenty of Assets to Pay All the
DepositOrs.
MR.. HART SUMS 1T ALL UP
THE SECURITIES ARE SEALED.
Lawyer Frank M. Stone Talks About
the Manner in Which Bonds
Have Been Valued.

'I have not yet had time to examine the
report of the Bank Commissioners, At
torney-General w. 81. ii. Hart said to
CALL reporter yesterday afternoon, but
can say that the report amounts TO tnls ::
First, that the bank is in an unsafe condl-
tion; second, that there will probably De
enough assets to pay every depOsltor In
full"
Mr.. Hart was speaking Of the report as
to the condition of the Peoples Home
Savings Bank, which was mailed to him
by the State Bank Commissioners on Sat-
urday afternoon. He did not receive 1t
until yesterday morning. and had not had
any time to Investigate.
This is all can tell you." he said. in
answer to request for statement of the
banks finances, which it was presumed the
report of the Commissioners contained.
and he explained why: "The communica-
tion is private one, and can't therefore
disclose its contents"
Afterward Commissioner Gerberding
was seen at the Pacific Bank: "Mr. Hart
has the report" he said, sand be can give
it to you if he wants to-" Mr.. Gerberding
then corroborated what Mr.. Hart had said
a to the banks condition. The burden OF
the report, he said, was that "the bank is
not safe"
But will there be enough assets to pay
all the depOsitors?"
MAY be" was the laconic reply.
Ii is learned that the deposits of the 49,
000 depositors aggregate about 81, 100000.
in excess of that amount.
"YeS. but they hguIe the assets upon a
scale valuation, "remsrkeu Counselor Frank
M.Slone when the reporter aled upon him.
Mr.. Stone explained that the va ue of ce-
tain bonds held as securities by the bank
had been placed at, say 80 per cent. In
stead Of at par.
why should the capital of the Peoples
Bank be considered as impaired" he had
asked, $50 long as Ii had an excess of
assets over lis liabilities, even at the very
lowest valuation which could be placed
upon its asSets?"
To Mr.. Stone's way of looking at it, it
was much better all around than if its
Liabilities and assets had been five times as
much.
There was reason for n5t publishing
statement of the banks finances TO The
world. suppose some mans Obligations
to the bank were to be made public, would
it not hurt his business standing by af-
fecting his credit? Would it do to publish
every mans debts? The business world
could never stand that"
This reason Mr.. Stone had got from the
AttOrney-Ueneral himself.
"Nill the bank close?" was asked of
Mr.. Stone.
SIT will not" was his answer. sit will
continue to do business just the same as
ever. If the Attorney-General wants 10
close it he can only do 1t by proper legal
proceedings.
''Can the Commissioners close the bank
peremptorily ?"
They cannot; they will have to go
about whatever they do in the proper
way"
Mr.. Stone observed that, personally, he
was not averse TO litigation, and If any
proceedings were begun he would defend
every asset; but for the sake of business
generally he hoped no action would be
commenced In the courts. The bank was
doing business the same as ever yesterday.
said he, meeting all demands and expert
enciOg no greater run than usual. The
only trouble about ii all was that the ac-
tion of The Commissioners was having
depreciating effect upon securities, and the
bank officials were forcing some mort
cages, which ordinarily would be Al
securities, to meet the claims of depos-
itors.
The bank is not paying the claims of de-
positors in full. 1t pays portion of the
amount and insists upon the usual time
notice for the BALANCE.