The herald., 1893-07-30
SOME OPINIONS FROM BANKERS
The Prospect for Business Very
Encouraging. E{
Advantages Of Commercial Under
takings in Southern California.
Cashler shafrer of the First National
Bank Gives n Logical Prsssnta-
tion Of His Opinions-Ideas
Of fOthor Business Men,

been treating the banks since the recent
financial troubles, HERALD representa-
tive dropped in upon several and gath
cred the following from the officers in
terviewed at the different institutions.
At the First National everything
seemed cheerful and lively and no one
could from appearances have guessed
that there had been the slightest ripple
In the financial world for years.
Mr.. ]. M. Elliott. the president, being
absent, Mr.. G. B. Shaffer, the efficient
assistant cas- bier, gave in answer to in
quiries the following statements indi-
eating how little the excitement in the
eastern money market was affecting
their bank, and also how little it would
affect the people of Southern California.
He said that their bank had entire
confidence in the future prosperity OF
this locality, and was satisfied that 1t
would not be but short time before
everything returned to its normal con-
dition.
"In regard to the general business Of
the country" said Mr.. Shaffer, "there
is absolutely nothing needed but conf.
dencs on the part of the public. There
is probably just as much or more money
in the United States today as there has
been at any time notwithstanding the
apparent heavy shipments of gold abroad
some months ago. This money, il the
banks would feel at liberty to use 1t,
would at once rehabilitate trade all
over the country, and the present times
of depression would soon be forgotten.
''There is in the city of Los Angeles at
xt,so rvv,ank vHvnho h1v ~, oro woman thu,
there has been since 1887, or perhaps
even this restriction should be removed.
"While criticisms have been made
upon banks for Withholding loans at the
present time it is only just, considering
the existing condition of affairs, that
they should do 90 until the mind of the
public in regard to them not only
here, but throughout the United States,
should have settled down to something
normal.
'As to our own bank, that the public
in general have the utmost confidence
in it and its management is evidenced
by the large number of subscriptions
that were offered for the 5000, 900 stock
which 1t was proposed to issue. This
amount has been fully subscribed, and
has all been paid in, and will give tho
bank not only this increase in its pecu-
MARY strength, bat the additional as
sistance OF some l25 we'll known persons
in Los Angeles city and county, persons
who are able in the time of great de-
preston to lay their hands upon the
money to pay for the stock for which
they so readily subscribed.
"We think our bank has shown its sta
bility in the manner in which it recup-
Grated its condition, in that, after pay
ing out some $650,000 OF its s., ,950, 900
deposited, when it reopened twenty-five
days thereafter it had collected funds
sufficient to equal 80 per cent of its re-
naming $l,300,000 deposits, and this,
too, almost altogether upon it's own re-
sources and without borrowing from any
of its correspondents and without dis
tressing or jeopardizing the interests Of
its borrowers, clearly showing the very
excellent condition of ite available as Z:
sets. This is q most extraordinary
showing, for it ia doubtful if any other
institution OF its kind could have done
more than this. -
The free manner in which the cash
WAS paid out by our bank during the
run of two days, though very agreeable
to some 900 frightened depositors, has
been criticized. If instead of greatly in
creasing its paying force, as was done,
we had reduced it to one paying teller,
and worked for time with the large
amount of cash on hand, the run could
have been successfully withetood for
several weeks, aud in that time the bank
could have collected enough more funds
to have paid out 65 per cent of its depos-
its before it would have been forced to
close.
This criticism, however, l think is too
greatly emphasized, as guch q method
has its commentators.
"The bank has been in the habit of
waiting on everyone OF it's many custom
ers promptly, making 1t point to never
keep them waiting. and knowing their
own good financial condition, and rely
ing in the confidence they he'd every
reason TO suppose the depositors OF the
bank entertained for the institution,
they felt assured of their ability to meet
oil demands that would or could possi-
bly, be made upon the bank, and thereby
keep down the appearance of run and
preserve to greater extent the banks
general standing and enviable reputation
in the community.
"Had the Withdrawals been OF less mag
nitude this plan of meeting every de-
mand without restraint would have been
successful, and everyone would then
have said we had prusrsued proper and
most commendable course.
"Fhe bank is certainly sound and in
most excellent condition Gas was proven
by the thorough examination by the
three national bank examiners and
their favorable report thereon) as also
we firmly believe are all the. other banks
of the city. a5~s,
"There is no reason whatever for any
lack of confidence in the banking insti-
tutions Of this city, and after the
thorough test to which they have been
put, no recurrence of the late panic in
this city is possible.
''This locality contains class OF young
and energetic business men, entirely.
different from the makeup of the busi-
ness centers east. The institutions here
controlled by such men are bound to re-
cover quickly, especially as the last few
years in California have been most
prosperous and in the immediate neigh
borhood of Los Angeles new enterprises,
euch as the packing houses, smslters,
9tc., are bound to be of great benefit.
The grain crop Is unusually heavy and
everything indicates that this year the
vineyards and orchards will do equally
as well. Through these sources and
others large amount of money is
bound to be brought into Los Angeles
county. There can be no doubt but