The record-union., 1893-07-27
THE BANKS OF SACRAMENTO.
Commissioner Knight Declares They
Are All Sound.
He Also Pays a Very High Complf-
ment to the Careful Methods
of Their Managers,

State Bank Commissioner W. II.
knight. who has been in the city exam
ming the:banks, was seen last night by a
RECORD UNION reporter. He examined
the California State Bank on Monday, the
Sacramento Bank on Tuesday, the Peo-
pies Bank yesterday forenoon, and the
Farmers and Mechanics Bank in the
afternoon. He reports most favorably on
the local banks, and declares that they
will show to the best advantage in COM
parison with any in the State for sound
ness and careful management.
The savings banks, he said, loan their
money very carefully, taking only
good loans, and his examination showed
that the interest in almost all cases was
kept paid up promptly. The loans are
made, as a rule, to persons who want to
get out of debt and who kept up their
payments. In the few cases which were
behind in their payments he found the
loans were not so good.
Another good feature is, he said, that
they have had to take very little real
estate by toreclosing on it.
Another thing that surprised me, !"
said he, Twas that l found Sacramento
County in such good condition finan-
ciaIly. l had received the impression
that Sacramento was suffering from tinan-
cial depression and that business was
poor, but when 1 came here L found a
different state of affairs entirely.
There are no foreclosures in the
county, the banks are doing a safe, con-
servative business and are eXcellently
managed. The officers know personally
all about their business and keepin touch
with their customers, so as to know how
they are getting along.
"Of course there is some falling off in
deposits, but that is the case all over the
State, and Sacramento is not exceptional
in that respect. No, do not think 1t IS
specially due to Withdrawals or use of
money to attend the Worlds Fair, but is
more directly traceable to the general
stagnation in business. When business
is in this condition nothing is ever
started. When business is active, there
is always plenty of money floating about,
waiting for investment or being put into
the banks.
six or eight months ago people were
seeking opportunities to put out money
on good loans. Why should there be a
loss of confidence now? Take the case Of
the Colorado banks. I don't see any
cause for panic or for any great dis
turbance. The Los Angeles banks have
all opened again. They all possessed
ample assets at the time OF the run winch
closed their doors. They had two to
three dollars to one of liabilities and were
perfectly sound. 1t was the want of con-
lidence that closed their doors Temporal
rily.
Banks must loan their money or stop
doing business. AS l said before, your
bankers keep in touch with the borrow
ers. They give their personal attention
to details of loans and values of property.
| examined their loans and inquired into
their system, and can say that for sound
ness, careful management and solvency
no banks can stand better"
Mr.. Knights words speak for them
selves to those who are crying ''hard
times and mo business" and show the
injurious impression of our financial situ-
alton that goes abroad through such state
ments. His opinion of our banks ought
to be most gratifying not only to the Off
GERS themselves, but also to our business
men who deal with them, and the citizens
themselves should appreciate the compH-
ment he indirectly pays them for not pro-
noting a senseless scare as some other
places have done, to the great injury of
the banks and OF themselves.