The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1894-01-30
HIBERNIA LEADS.
Bank Directors Make a
Step Forward.
LOANiNG WITHOUT RESERVE.
A Month Unprecedented for
Prosperity.
LOANING WITHOUT RESERVE.
SAVINGS BANKS ENCOURAGED.
San Francisco Property Accepted as
Security by All on Loans-Money
Is Plentiful.

lit is really very encouraging to US,
said Secretary r. j. Tobin of the Hibernia
Bank yesterday, very encouraging in
the history of this bank such pros
porous month as January, 1894 Ii is I'M
precedented."
No doubt the unexpected turn in the
tide alluded to by Mr.. TObin is still more
encouraging for the people in need OF
money. for builders, architects and, in
deed, for everybody interested in San
Franchises welfare. And it had a de-
cidedly good effect yesterday when the
bank directors met and scanned sheets OF
figures and balances on the right side.
These showed that money was accum-
ulating 10 the vaults and that deposlt0rs
had mistaken confidence in the institu-
ton. What TO do with the rapidly in
ereasing surplus was the next matter for
consideration, but it was easily disposed
of by resolution placing the bank ia its
old position with regard to loaning. Tie
table in the directors room was covered
with applications for loans on real estate
IN San Francisco, so numerous that they
could not be considered separately. One
resolution. however, covered them all, and
now the only obstacle in the way of loan
III III NC tlblSS VI fdluC Va lDC NY
offered
1--WE received over a million dollars in
deposits this month, remarked Mr.. Tot bin
The money came IN small amounts,
probably from people who had ii boarded
in secret places at home or in safe-depost
vaults. There were numerous requests 10 de-
post large amounts, that is sums over our limit
but We declined TO accept the offers. We have
been paying out the dividend constantly. Our
dividend is 100000 and although every day
large sums have been paid to depositOrs the de-
posts are far in excess OF payments. Such a
condition Is UMPIRE cedented In the history OF the
bank. surplus OF over 100000 is kept on
hand, but there Is plenty over The amount to
justify loaning without reserve as 10 extent Of
loans
Until to-day we loaned on mortgages In
small amounts all the way from $1,000 to
$4,000, but the directors have removed the
limit and now all applications for loans on city
real estate will be considered. That places US
where we were in most prosperous times
Isn't that encouraging news?"
The veteran secretary smiled as be cOntem-
plated the return OF good old ways and shuffied
pile of applications around on his desk
Look at these papers. They are all appli-
cations for loans and I'm signing them now
Yes, l suppose We will swell the mortgage
column OF the Breviate Of Records for some
time 10 come"
In accordance with a well-established custom
operations VIII be confined to san Francisco,
though some securities In Oakland and San
Jose will likely be accepted. City securities
are good enough for The Hibernia Bank
'Ihey are always under our eye and we are the
best Judges Of their value" remarked The
secretary.
The infection is spreading among other banks,
when, although working under certain de-
hneo limit nave become quite liberal wherever
money Is needed.
This is true OF the German Savings Bank.
Conservative business cbaracterIZes the trans
actions OF this institution, which is lo2ning on
city property IN amounts ranging below So 600.
1t Is rather soon 10 give you any n VS. on
the financial situation and its Improvement
Inn I aid
we have done so far is not on record, but YOU
will see it there within week or ten days. You
know. OF course. that time is required for 10
vestigating securities, making appraisements
examining titles, etc. We have been busy in
this direction and expect In another week to
act upon large number OF applications. The
business OF The bank is working down TO its
normal condition. Next month will see US CO.
ing along in the old channels. For some time
loans Will be eoufined to mortgages In the city,
but We VIII extend into the country as early as
possible"
I'VE are loaning at per cent on real estate
and collateral" said the president of the Say
ings and Loan Society.
I'VE have no limit on loans though we are
not seeking large loans. Deposits and with
draWals are even, with balance In favor OF
the latter; so as things are shaping themselves
We expect after the end of this month money
VIII begin to accumulate. We have loaned
money on frSt-elass city collateral TO frst-class
parties at per cent, but these were call loans
1nere mas been quite remarkable change IN
three or four weeks, otherwise We could NO.
make loans"
Deposits and Withdrawals are about equal in
The Mutual Savings Bank, and a very signif.
cant Sign OF the times Is seen In this banks re-
fusal TO accept large deposits on old eondi.
tons. The manager declared he would take
no large deposits IN future without a special
contract as TO time OF payment. He said the
banks have Learned lesson regarding extern
slve deposits which Will be long remembered
III affairs continue to improve the Mutual Bank
Will be loaulng literally next month.
Inc San Francisco Savings Union is loaning
on city real estate al the usual rate of Z per
cent on amounts that do not exceed $4,000
we are acting cOnsefvaiiyely," said the presi-
Gent, Though in a few weeks we will 90 far be.
yond our present limit, and later on begin in
the country. The deposits have been more
than Withdrawals for weeks past Every body
has confidence in the savings banks"
Inc humboldt Savings and Loan Society has
been loanlBg for the last TWO weeks mostly In
small amounts. 1t has one loan OF $4,000
under consideration, and as soon as the titles
ETC., are found satisfactory the money will be
paid out, and The largest mortgage in San Fran
cisco Tor many months will be recorded. The
directors are very particular as 10 margin on
securities, aud loan only on their own estimates.
All things considered, the severe strain OF
iast IAN and the timidity OF depostors, the saw
lngs banks have regained their former positions
earlier than any one expected, and in so doing
IN NknaWsn -