The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-07-02
BANKS AND DIVIDENDS,
Interest Reductions, but the
Significance Considered
Favorable.
LARGE BALANCES ON HAND.
The Financial and Business Outlook
Promising and Real Estate
Improving.

Dividends on term and ordinary deposits
became payable yesterday at several banks
in the City for the six months ending
June 80.
In two or three instances it was notice
able the rate of interest had been reduced,
but on inquiry it is learned the significance
attached thereto is favorable in general
way, rather than the reverse.
The depositors, however, are the ones to
suffer, though the causes leading to the
reduction have favorable bearing on the
local world of finance and the business out
look in general.
The banks have so far recovered from the
baby panic of two years ago Though an
unusually healthy infant it was) as to hold
large balances on their hands. This is one
of the causes operating in the matter OF the
reduced rate of interest in the cases cited
hereinafter. Another cause is that the
country banks were slower in recovering
from the panic of two years ago and the
City banks find themselves compelled to
give time on their collections therefrom.
The third cause has its origin in the antlci-
patton of an appreciable increase in the
rate of City taxation.
Be this as it may, the bankers offer
consensus of opinion 10 the effect that the
outlook financially, commercially and for
real estate is better than for long time
past. Real estate is on firmer basis and
is improving steadily. The truth OF this
may be judged from the opinions quoted
below:
F. M. Belgrano, secretary of the Column
bus Saving and Loan Society, said: "Our
rate of interest is the same this year as
| last. The outlook is most favorable. Real
estate ia ON better foundation than for
some time past. We could loan all the
money we have on good security and at
satisfactory rates. l suppose the probable
| increased rate of taxation has something
| to do with the reduction in interest rates
| on the part of some of the banks. l think
everything promises WE'LL"
"Our rate is the same as before" said
Lowell White, cashier of the San francisco
| Savings Union. ''Of course it takes time
| for the banks to recover from such siege
as they had two years ago. The body
polite is like the individual in that respect.
One may be taken sick in day. hnt it
takes thirty or sixty days to recuperate.
The banks and big financial institutions
have recovered and the outlook generally
| is good. Business is on solid and salts
| factory basis"
I ''Our reduction of 2-10 per cent on term
deposits, from to $40 per cent, said
| Cashier Schmidt of the German Savings
and Loan Society, sis due principally to
! the large balance on hand. But finances
are improving and | look for much
greater advance"
Secretary Abbott of the Security Savings
Bank said: "Our reduction from $40 and
to Az and 3sz is the result of the anticl-
pated increase in the rate of taxation and
| to the increased daily balance on hand.
| think, however the outlook is encouraging
and that business of ell kinds Is about to
take an upward turn"
I'VE have made no reduction In our in
terest rates" remarked S. G. Bigelow OF
the Savings and Loan Society, "but sup
pose where such reductions have occurred
they are due chiefly to the difficulty ex-
perienced by the banks in collecting coun-
try loans. As far as the outlook is con-
cerned, / feel well content to await the
issue of the next few months. Affairs
financial are on an upward trend"
I'VE have made no reduction" said
Cashier Brand of the Humboldt Savings
and Loan Society. 1.-THE business outlook
regard as being quite encouraging, though
/ cannot say as much for real estate. Be-
ing land and house owner myself, have
somereason to think differently"
George A. Story, cashier of the Mutual
Savings Bank of San Francisco, replied to
question concerning interest reductions
by saying: There has been no reduction
in our rates of interest on deposits, but I
suppose with the banks which have re-
duced their interest the cause was that of
decrease in their earnings and difficulties
experienced in placing loans on secure in
vestments. Business generally, think, is
improving"