The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1896-03-06
EARLY BANKS IN CALIFORNIA
Profits Were Often Enormous, but So Was
the Risk. 4r
rom the Overland Monthly.


From the Overland Monthly.
In treating of the romantic period of
the Argonauts writer's have touched
but lightly upon pioneer banking, a
subject which would have furnished
many an interesting chapter. This is
to be doubly regretted, because the
business was of a magnitude hardly
equaled i'm any other new country, and
because the records are to-day mainly
derived from personal "reminiscences
blotted and dimmed by the passage of
time. The old banks of San Francisco
were undoubtedly marvels of the age
While lacking the snowy exteriors and
handsome furnishings of their modern
successors. they proved fully equal to
the requirements of "a day when gold
was more Of a commodity than IT has
ever been since. Statements OF i'm
mense deposits of gold In the ram
shackle buildings and the pot metal
safes peculiar to the times might seem
exaggerated were they not amply
proven by reliable statistics.
In a new land where gold is king
banking naturally hourishes. With the
accumulation of metallic wealth a de-
pository must be provided for storage
ana security. The miner following
some prolific lead in quartz or gravel
cannot continually cache his pile un-
der the sole guardianship OF nature.
When opportunity offers his treasure is
transported to some safer place, leav-
ing its owner to pursue his labor free
from any further care. AS all the
roads then led to the city by the bay,
San Francisco became the great bank
ing center of all mining districts If
the profits were large in those days,
many and varied were the vicissitudes
of the business. While, as a rule, the
banker of the period is supposed to
haVa N Inv n 10
literally strewn with thorns. 1t could
hardly be said that capital was eau
tous then. but IL certainly was timid
to a degree which frequently precipi-
tated a crisis short lived as a rule, but
sufficiently threatening in its aspect to
cause general uneesiness.
The depositors among the mining
community were inclined to be as tickle
as the fortune which attended their
search for gold and when not engaged
In delving among the gulches and ra-
vines of the higher Sierra or along the
banks and beds of the Sacramento and
its tributaries they seemed to have
kept a watchful eye over the move
ments of the banker. An apparently |
trivial event would suffice to create |
suspicion and that meant an imme- |
date demand for whatever money was |
on deposit. which had to be forthcom- |
ing on short notice. There was no law |
then to protect the banker by requir- |
ing formal application for the with |
drawal of deposits under special CLASH |
fication. The drafts presented must be |
payed or the doors must be closed.
In the beginning of 1854 Adams & Co.
were subjected to a most trying expert
ence from the most trivial cause.
Usually large shippers of coin the
January steamer had departed without
their names appearing on the manifest
for some reason. A run Immediately
was commenced on the bank and be-
fore the first day had closed nearly
$500. 900 I'm gold coin had been paid over
the counter to an excited crowd of de-
postors. AS usual in such cases the
apparent ease with which the sudden
demand was met and the well stocked
trays OF gold behind the counters con-
frunted customers soon turned the tide !
and a few hours later the deposits |
were pouring back again more rapidly |
even than they were withdrawn. This |
is only one instance of the kind quot
ed to show the nervous disposition of |
a community largely made up of men
who had followed the exciting and pre-
carious career OF miners in a Compare
lively wild and UNEMPLOYED region, a
life in itself calculated To inspire and |
foster a natural feeling of distrust In
their surroundings.
IL is little wonder that banking flour |
ished in this golden era. Had the flow |
OF this glittering stream been checked |
at the bay in those halycon days what |
of a city. mistress of the waters, great 1
er even in wealth and gradeur than
Carthage of old.