The herald., 1896-08-10
DEPOSITORS ARE PROTECTED
Should Legal Tender Dcpreciate They
Will Lose Nothing
Deposits Will Be Repaid In Gold Ia Any
Contingency
Los Angeles AMI San Francisco Savings
Banks Are United on This Policy
Tho Gold Bug Calamity
Howl Entireiy Dlsregarded


who are trying to create political CAPT.
| tai by the calamity howl, have been de-
claring from the housetops that in the
event of the enactment of free silver
coinage gold would go to premium and
| banks would refuse to pay gold, to de-
| positors. This foolish declaration has
| had the effect of frightening some of the
more tmid depositors, with the result
! that bankers have been besieged with
! questions as to their intentions in view
| of the probable admission of silver to
| the mints for free and unlimited coinage.
This feeling of uneasiness prompted
the San Francisco' Savings Union to is
sue a circular to depositors announcing
that that institution will continue to pay
| depositors in gold coin, regardless of the
| possible appreciation OF gold or debase-
| ment Of silver or currency.
| The policy declared by the Savings
| Union is concurred in by the Hibernia
Savings and, Loan society. and the Ger
| man Savings and Loan society. the
three banks representing sS5,o0O,00 ,of
the sl00,O 900 in San Francisco savings
banks.
Interviews with the cashiers of five Of
the six Los Angeles savings banks de-
veloped the fact that the banks here
| take the same$st as in San Fran
| cisco. Without exception every one of
| the bank officials interviewed stated
that the banks intended to continue gold
| payments as they have done heretofore.
President Braly OF the Savings bank
| of Southern California said: Il have
| read the circular issued by the San
| Francisco Savings union and can say
%L.t ont1 n
will continue to pay gold for gold as
heretofore, and depositors need have no
| fear on that score"
| Cashier Woolwine of the same bank
| seconded President Braly's remarks,
and added that depositors would have
| no trouble to get as good money as
| they deposited, no matter what change
| might come about in the coinage law.
His bank intended to continue gold pay
ments. Granted that gold were forced
| to a premium by free silver coinage,
| deposits made on the existing gold basis
| would be repaid in gold on demand. De-
! preciated legal tender, other than gold,
would not impair gold obligations.
M. N. Avery. cashier of the German
American Savings bank, said: "All our
| contracts are in gold, and as long as we
can force gold payments from our debt
| ors we will continue to pay gold to our
I creditors. Our policy is identical with
that of the San Francisco savings banks
| in this respect"
w. Nj. Caswell cashier of the Los An
| geles Savings bank, said: I'VE certain
| ly expect to continue gold payments.
| Depositors will get as good money as
| they deposit. If gold should go to
premium, as predicted by newspapers op-
| posed to free silver, the banks would
| simply return to the old method of keep
| ing separate accounts of the various
| l. ;,,Ie ,r cd for
of gold would be paid in gold, and sill
Yer would be paid for silver, which
| would be fair to all parties"
Cashier Longyear, of the Security
Savings Bank and Trust company, said:
"All our assets are in gold and we ex
| pect to continue to pay gold for all liza
| bilities. Payment in gold will be re-
| quired from all debtors, and we will pay
| depositors with the coin collected"
| b. V. Duque, assistant cashier Of the
| Main Street Savings bank, said that
| bank expected to continue gold pay
ments. His views were in accordance
! with those expressed by the representa-
| tives of the other banks interviewed"
Following is the circular issued by the
San Francisco Savings union:
DEPOSITORS WILL. BE PAID IN
| GOLD COIN.
For the information of depositors and
| in reply to an occasional inquiry as to
whether deposits in savings banks may
| not at some future day be repaid in a
circulating medium other than and in
| ferior to gold coin, the San Francisco
| Savings union, with the approval of it's
| board of directors, defines it's position as
| follows:
First-Contracts for the payment Of
! gold coin are lawful under the statutes
| of both California and the United States,
| having been so declared by the supreme
| courts of each, and as the constitutions
! of both state and nation forbid the en-
| actment OF laws impairing the obliga-
| tion of contracts. it follows that credi l.
tors may collect in gold coin when such
| payment Is stipulated
Second-All evidences of Indebtedness
held by the Savings union call for pay
ment in gold coin. Payment in gold
coin will be required from debtors, and
! the bank will repay depositors in the
| coin collected.
During the civil war and after, gold
payments were maintained in Cal5of-
mia, the savings banks participating.
while gold was at large premium in
all the states east of the Rocky noun
tains. The bylaws of the institutions
and the relations otherwise between the
banks and their depositors were then
the same as now.
LOWELL WHITE. Cashier.
August /, 1896
Robert ]. Tobin of the Hibernia Saw
ings and Loan society was shown the
circular, says the San Francisco Ex-
aminer, and said that it expressed what
he knew would be the policy of the bank
| with which he is connected
"A few persons said Mr.. Tobin,
"have asked me questions about what
would happen in case gold should go to
a premium. and have told them very
much the same things as you nnd in this
circular. The specific contract law gov
| ernS all business in California livery
| depositor now Is credited with so many
dollars in gold and he will be paid in the
same coin. In the same way every bor-
rover must under his contract repay us
in gold coin, and that condition will not
be changed, no matter what change may
be made in the currency laws.
"It is not new condition in Califor-
mia. You may remember that some
fourteen years ago, l think 1t was, gold
went to a premium here. Silver was de-