The San Francisco call., 1896-07-02
After Getting Rid of Taxes They
Are Confronted With More
Trouble.
SUMMER DIVIDENDS MADE.
The Hibernia Bank Reduces the Inter
est on DepoSits-Future Is
in Doubt.

At the close of the first six months of
1896 the local savings banks find finances
dull, money in q rather limited supply and
interest almost as low as it could possibly
sink. The bankers were in hopes that on
July / their troubles over interest due to
the San Francisco tax rate of 2.25 per
centum would be at an end. and that the
next six months would be more favorable
TO depositors. Everything pointed to
largely reduced rate of taxation, and with
such prospect it was inferred that inter-
est would advance in proportion.
Now, however, at the turning of the tide
bankers are confronted with altogether a
different condition, which makes mate
rial change in their calculations. In fact,
as managers of the savings banks put it,
the cry for free silver has completely
thwarted all plans, and the fnanciers are
asking themselves, like Cleveland, Where
are we at?"
The Hibernia Savings and Loan Society
announced yesterday that the interest
paid by that institution had been reduced
from 4 TO 33< per centum. The Columbus
Savings and Loan Society, the Savings and
Security Savings Bank, the Hum boldt
Savings and Loan Society, and the San
Francisco Savings Union declared divi-
dends of 80 per centum on term deposits
and $50 on ordinary deposits. The German
Savings and Loan Society paid 4.26 and
3.55 per centum, the Mutual Savings Bank
4 and 1885. The Columbian Banking
Company declared a dividend of per GEN.
tun on its paid up capital.
Lowell White, cashier of the San Fran
cisco Savings Union, said that conditions
as he found them in the savings banks
signited no distress. Money is not in
plethoric supply" he said. There is
enough for the needs of the people, but it
does not press on the loan market. Inter-
est rates are the same practically as in
last January. There is no cheap money,
as there is employment for all available
coin. To-day is dividend day, and the de-
mand for dividends and maturing notices
is less than usual"
Nv hat does this signify ?"
That there is no monetary distress;
also that the people are 10th TO employ
money or take returns. If business was
active We would be loaning out more
money.
The tax question and the silver question
are the bugbears of this country to-day.
They are checking enterprise, and until
the tax rate is settled and the silver ques-
ton disposed of, at least in the minds of
the people, there cannot he much revival
OF business. People are living from hand
10 mouth, and banks are affected the same
way-hand 10 mouth. There is nothing
ludI ucDOleS DOOM or 0ealrnY cOnQl-
tion OF society. The banks will suffer in
common with the community on the
silver question.
Bankers see great disaster, not to
themselves alone but TO the community,
In the free coinage of silver. Banks and
capitalists will suffer less, but they de-
plore il ali the same in the interest of the
public. 1t would be a clean-eut fight be-
tween common-sense and madness if the
Democrats should dissolve in favor of the
free coinage of silver
The president of the German Savings
Bank said that bankers generally were
waiting to see what the political parties
were going 10 do with regard to gold and
silver. This silver agitation upsets Sc
curities," he added. with it before you
you cannot tell anything of the future. Ii
the money question is settled favorably to
the golo standard, even by the Democrats
In their National Convention, it will help
things great deal"