The herald., 1897-04-23
OFFICE OF THE HERALD.
LOS ANGELES, April q

Chauncey Depew says: "It has been
my experience, as ! sum up, through
quarter of a century of review of the
lives of the thousand men who have
been represented upon my ledger or In
my secret counsel, that the majority OF
them have either failed in business or
died poor"
A careful examination of the returns
made by the different banking institu-
tions throughout the state brings to
light rather remarkable showing, In
this: taking the statements of the ma
tional banks in comparison with those
Of the state banks, there appears to be
q considerable falling off, amounting to
some ten millions of dollars, In the re-
sources and liabilities of the state
banks. while the nationals have about
held their own during the twelve months
past.
The exact figures of the state banks of
February 2S, 1897, compare as follows
with those for March 2, 1896;
1896 1897
Savings ........,..$lis,6loieo SO ieo $isl, flo' o sss
Private ............. z,ilt,5ta .1,assgs az oto
Commercial ......... ll9OoISsi LoslhSlz
Total .SziO,ujb5 VIZ Szou, 4uv
"a falling off OF exactly s9,9SS,522
The thirty-one national banks doing
business In the state--of which no less
than nineteen are located In Southern
California--show as follows: 1895, re-
sources, $50, ,SS8, ,O74; 1897, resources, $sl,-
194,966, or a gain of sS06,s92.
The state banks show decrease OF
over 81 900, 900 In paid up capital for the
twelve months. which may be accounted
for by the lessened use of the capital
OF the five branches of foreign banks
doing business in San Francisco. There
is decrease of $1,442,000 in bank depos-
its, which represents the net amount paid
off in that line during the interval These
depositors have been obliged to with
draw this amount for other purposes.
The resources have been scaled down
proportionateiy with liabilities and al
tered by changes in nearly every item.
The banks have written off $3.50, 900 against
bank premises, due to depreciation In
value. The effect of the hard times IL
shown by the increase of 2,SSS,O0O In the
value of real estate on hand, which has
been taken for debt in excess of any such
property previously secured in the same
way which may have been disposed of
during the interval. This item is sup
posed to represent the cost on the books
of the property so held, and In some
cases at least is, perhaps, overvalued'
Evidence of caution Is seen in de-
crease of over $S00O,000 in real estate
loans In the past twelve months. The
banks could have loaned more on that
fern of security If they had been less
exacting But 1t is evident that they do
not want to foreclose on any loans made
the past year The same caution is OBJ
servable in other loans, those on stocks
and bonds having been decreased $5,'
44s, 400 in the same interval. while there
has also been a decrease of 81 ,040,0O0 in
loans on personal security. AS an onset
to this loss of earning power from loans,
the banks have increased their invest
ments In diviie ri stocks and bonds to
the extent of s4,464,000. There has been
a decrease OF sss2,000 In money on hand
ard s1,776,0O0 in amount due from other
banks, and s2,O72,ooo from miscellane-
Gus assets. vrt
The fall statement Of comparative con-
dition of the state banks is as follows,
ov,ittipo cents.