The herald., 1897-08-14
OFFICE OF THE HERALD.

Gu
OFFICE OF THE HERALD,
Los Angeles, Aug. 1S, 1897
Smaller banking profits are the natural
results of the increase of competition and
the continued growth of the volume of
capital seeking profitable investment The
report of the Comptroller of the Currency
for the year 1896 shows that there has
been falling off in the rate of dividends
paid by the National Banks for many
years past In the year ending March /,
1870 dividends reached the highest point
ever paid to the stockholders of the Ma
tional Banks. For that year the dividends
paid averaged 10.5 per cent of capital. In
1894 they sank to the minimum of 6.S per
cent. For the year 1896, the average rate
of dividends to capital was SO per cent
and if based on capital and surplus, only
per cent. The investigation of the divl-
dend statistics shows that the profits on
National Bank stock have been steadily
decreasing, and that the total surplus of
the National Banks is also growing less
This falling off in profits since the panic
of 1893, says the Bankers Magazine was to
have been expected and may be partly
accounted for by the general depression in
business. But this is not the only reason.
Even if business revives it will not be in
the power of the banks to restore the high
profits that prevailed in 1870 and for some
years after. The increase in the wealth of
the country has made it comparatively
easy for any bank established in a COM
munity of average prosperity to obtain a
reasonable line of deposits, but when these
are obtained it is much more difficult to loan
them to advantage. To retain them the
banks have to perform without remunera-
ton many services for their customers
which at one time yielded a profit to the
institution. They have also to pay inter-
est on many lines of deposit that were
formerly exempt from this charge. The
National Banks further derive very lit
tie if any profit from circulation. The
chief cause of these disadvantages is the
competition that now prevails in the bank
ing business, and which, if it continues to
increase, must surely drive many of the
weaker banks out of business.
The German Savings and Loan Society
of San Francisco has reelected its old di
rectors as follows: B. A. Becker, Daniel
Meyer II. Hors tman, Ign. Steinhart, Mic
Van Bergen, Emil Rohte, II. b. Russ, ID. n
Walter and N. Ohlandt. The directors met
yesterday and reelected the old officers,
as. follows President b. A. Becker; first
vice-president, Daniel Meyer; second vice
president, H. Horstman; cashier. "A. ii. r.
Schmidt; assistant cashier William Her.
mann; secretary, George Tourny.
The Security Savings Bank of San Fran
cisco reelected the old Board of Directors,
as follows: William Alvord, William Bah
cock. o. d. Baldwin E. ]. McCutchen
Adam Grant, II. Fl. Hewlett, S. l.. Abbot,
jr., R. H. Pease and w. S. Jones. o. d.
Baldwin elected president, Winfield
Jones ice-president, and S. l.. Abbot, jr
secretary.
The so-called panic in bicycle shares on
the Birmingham Exchange is attributed by
some to the fear among English stock
holders that the competition from Amer
lean wheels will become more intense and
the profits of English manufacturers cor
respondingly reduced Other markets
seem to be going through the process, as
regards prices of wheels, to which Amer
ican wheels were subjected last year and
this The cuts in selling prices in some
cases fully equaled the tremendous drops
in prices of high-grade wheels which have
occurred in this country. Reports from
our consuls in Germany are that conditions
American bicycle interests in that country.
Attempts made at boycottng the American
wheel are reported by Consu-General De
Kay at Berlin as having failed, and, on
the contrary, an increase of public favor
for American machines is noted.
\ \ \
Consul-General Karel at st. Petersburg
reports bicycling in Russia as in its in
fancy Permits must be obtained and
series of rules for bicycling in the cities
nave been made which seriously inter-
fere with the popularization of the wheel
Bicycles must be registered and the reg
lister number must appear on plates on
the front and back of the wheel The per-
son receiving permit must be photo
graphed and copy of the photograph
must be attached to the permit. Up to
Feb. 1st this year women were not al
lowed to ride bicycles on the streets of
St. Petersburg. The number of registered
wheels, however, in spite of all these re-
strictions in that city is a little over 1000
Principal imports of wheels are from Ger
many and England. There are only five
bicycle factories in Russia and riding I'm
the northern sections of that country is
confined to few months in the summer.
The American bicycle. as known abroad. is
too expensive for the Russian market The
hgher-priced Russian wheels retail of
about $780, the German at $780, the English
at SIPS and American wheels about the
same price. The few American wheels re-
ceived have all sold above $780, while the
low-grade wheels of English manufacture
do not much exceed $50 in price. The Rus
sian duty on bicycles is over 50 in gold
y \ \
JUNE EMBEZZLEMEN re-
ports and dispatches during the month of
June, 1897 as collated by the Fidelity and
Casualty Company of New York indicate
defalcations as under
Governmental .$161, III S5
State ,5S, ,442 10
Municipal ..........."................ 20.4lS A
Express companies .................. $40 90
Telegraph and telephone comps. 220O 90
Railways 1913. .329 90
Fraternal orders Observation-Disclosures. 3,095 81
Building and loan associations. .... 29, 500 co.
insurance companies ............... 4540 90
Banks ..........................1 164,3 ,314 SO
Court trusts Observation-Disclosures. 297 81
Commercial corporats and firms. 10 226 "a
miscellaneous ACKNOWLEDGEMENTS. 9.S0i 81
Iotal $S2S, ,5S9 Il