The herald., 1893-06-30

there. A few years since, at the period
of the bursting OF the greatest real estate
boom almost in history, and when hum
dreds OF individual business men failed,
ell the banks went successfully through
that wild time. Not one showed any
Sign Of distress. II was the wonder and
admiration OF a large portion of the
country that they 30 astutely managed
their afiairs aa to avoid financial danger.
These important facts are we'll known in
Chicago; and now the wonder is that
come OF these same banks have sus-
pended.
As our Chicago contemporary says, we
went through the crisis following the
collapse Of the great real estate boom of
1869 without single bank failure.
In fact, that great upheaval was not
followed by any business failures. One
great Pasadena real estate speculator
went under, and that was all. OF course
there we're may adjustments Of business
transactions, but with the exception of
Mr.. Webster of Pasadena there WAS not
single public disaster.
The editorial writer in the Chicago
journal has been at great pains to post
himself thoroughly on the condition of
things here. He continues:
All that is known at this distance Of
the condition Of general business in Los
Angeles is justification for saying that
these suspensions were cruelty forced or
wholly unnecessary. At last advices
four had temporarily euccumbed. The
% oil xrfoo tho (likxy honE
conducted by Mr.. Childress, an atten-
tive. upright and also scholarly man
OF business, who would deserve the gem
ersl confidence in any community.
More than common weight is due to his
statement that all will be right with his
bank in short time. The University
bank has fair local standing, and that
its managera did not deem it in peril 10
evidenced by the fact that its president,
Judge Widney. is now with his family
in Chicago on what was intended to be
a leisurey Welt to the Worlds Column
bian exposition. The Fret National
closed after $500, 900 OF out $500 900 in its
vaults was drawn out in q panic. Mr..
Elliott, one of the oldest and most con-
servative bankers in that city, is presi-
dent, and Mr.. Mayberry, of San
Jose. very wealthy man and the
largest holder OF bank shares on the Pa
clGc coast, ia the principal capitalist OF
tbis bank. A private dispatch received
yesterday in Chicago from Mr.. Elliott,
says that tho suspension is only for a
few days, and wholly in consequence OF
o run on all the banks when help could
not be Immediately had. Los Angeles
is ieolated from other banking centers,
San Francisco being 500 miles away and
Chicago 1000 miles. As it was, proba-
bly, the suspending of this bank was un-
necessary mad q timely courage been
shown. For when the panic stricken
crowd rushed at the doors of the Los An
geles National bank, demanding their
deposits, its president, Major Bonebrake,
bravely showed himself and made q
speech thst appears to have been ac-
cepted instead of moneys. Tho South
ern California National and the East
Side bank were in another class, but
cannot have made very bad failures.
We yesterday mentioned the fact that
United States Bank Commissioner
Wightman, in q conversation with one
of the editors of this journal, stated that
ne found the suspended Institutions to
be in a most satisfactory condition; and
that the runs, by all ordinary standards
of banking, were causeless and sense
lees. A panic is governed by no laws,
and the fact that people become ire
sponsible in no whit impugns the right
full standing of bank when an official
examination shall have established its
entire responsibility. We cannot for
bear quoting the concluding lines OF the
article OF our Chicago contemporary.
They are gospel verify, and here they
are:
Los Angeles was never growing so
rapidly as il is now, and the general
business OF the city was never 80 good.
Bank cienringe, reported from week to
week, have been 81 per cent greater the
past elk months than ever before, and
on deposit in the banka OF Southern
California has been in that time one
third more money per head OF the pop.
plation than in any other section of the
country. Hence il must be concluded
1 that the present banking troubles Of
Los Angeles were caused by the panicky
wave that only touched Chicago and
passed westward. These troubles do
not in the least prove that there is
| ADDED reason for unusual anxiety in
! financial circles.
II is pleasant to know that we are rap
| idly rehabilitsting our financial affairs.
For the reason 80 clearly stated in the
foregoing, this city and section will suf-
fer no serious drawback from a financial
cyclone whose fury was confined to a
few hours. Our recuperative powers, as
shown in the recent crisis, are tho best
guarantee of our financial vitality.