The herald., 1897-09-30
OFFICE OF THE HERALD,


LOS ANGELES, Sept. 29th.
The nineteenth annual report of the
bank commissioners of California has been
submitted to Governor Budd. The report
shows that there are in this state 1853 COM
merciAl banks. Sc state savings banks,
agencies of foreign commercial banks, 2l
private banks. and 81 national banks
There are II commercial and savings
banks now in process Of liquidation.
The report also contains some recon-
mendations regarding the management of
banks that will prove interesting reading
to many who have found themselves the
victims Of stranded financial institutions.
The report reads as follows:
The commission from its experience OBJ
tained In the examination Of banks believes
that 1t is qualified in again urging certain
amendments to the law relating to such
financial institutions.
We have urged from time to time in our
reports made to your excellency ana
through papers presented to the bankers
conventions held in this state, that many
vank faiidres might be averted If certain
kwe were enacted which would become
Restrictions upon practices and privileges
used by bank directors and officials In
nharke of banks.
That bank directors might become more
auiiliaf with their duties and responsible
tiles we have urged that. in addition to
the laws now defining and prescribing
theK duties. 1t should be law that they
~ required to make a personal ex-
ANIMATION of all the affairs and condition
Sof. the bank at least twice year, to GER
4tify Its condition under oath to the bank
commissioners.
SThis law would compel them to per-
form duties which the law implies they
;Ef1ould perform, and 1t would require them
TO pass upon loans, which are frequently
made by. the officers of the bank to them
suefves, and which SO frequently become
worthless assets. and thereby directly or
Indirectly cause the banks failure.
! We have also urged that law should
be enacted prohibiting bank officers over
drawing their accounts unless authorized
TO do SO by the boards of directors and in
no case unless such overdrafts were Sc
cured.
An officer in savings bank is prohibited
by law from borrowing any of the funds
Of the bank over which he presides, and
vyhv 81 officer in a commercial bank should
be permitted by law to borrow, without
limit, the funds Of the bank over which
he may preside, cannot certainly be JUS
titled.
The board of bank commissioners has
earnestly endeavored to supervise the ac-
tions of directors over banks in liquidation.
but finds 1t very difficult to obtain salts
factory results. The directors are as ire
auently interested in protecting their own,
property AGAINST the execution of the cred
itors of thA bank as they are in enforcing
the same. \uch conflict cannot result
/ ii, good to hbth parties. and for this rea-
mon alone q ID many others which could
sbe .giuAsr.di1actors should not administer
THE affairs Of insolvent banks.
Henry Labouchere, who keeps an eye
upon the inves tment market, In Truth, MS
London journal, expresses the opinion that
the British financial writer's have over
reached themselves They have been per-
sistently hammering Americans" for two
or three years past. with the result that
the stocks have been returned to US In
great quantities and at bottom market
prices. Some of these bad advisers are
now turning around, says Truth, and are
advising purchases. There is' abundant
corroboration of this assertion of Truth,
but the United States has no reason to
complain, as thus far 1t has been able t..
absorb without difficulty all of the re-
turned securities. If there is a turn In the
tide, and fresh demand for "Americans,n
springs up on the other side of the water
the British who pay the advancing price,
mill rrio
who with the obvious purpose of doing
the United States an i'll turn, directed the
attention Of the English investors to Bull
garian and other financial atrocities, and
induced them to neglect the securities of
a country with an assured future.-San
Francisco Chronicle.
= \ +
The income account of the Atlantic and
Pacific receiver for the year ending June
30, 1897 shows: Gross earnings, $3,597, ,S4S;
operating expenses. 81. sO4, ,2S6; net earnings.
$7sa.612; charges, $sss,ss2; surplus, $424,2so.
= = =
OF two lots of gold from the Klondike
received at the New York assay office
assayed .74S per cent gold and .24s per
cent silver, which made the value $15.4S
an ounce, while the other assayed .S2O1A
per cent gold and .174 per cent silver, MAX
ing the value $16.95 an ounce.
\ +
The Japan Mail, discussing the silk trade,
says: Prices in Japan are now steadily
rising, orders on large scale having been
received from abroad by many of the
nrms in Yokohama. No considerable sales
were effected on Monday last on account
OF the scarcity of goods of suitable quality,
25o bales only being taken.
\ y +
william Price Of McKeesport Pa, rep
sresents q company of Pennsylvanians who
be says are to erect and operate plant at
Port Angeles, Wash, for the manufacture
Of tinplates. 1.-THE process will be started
In q blast furnace and ended with the
shipment Of high class tinplates to their
destination. From the conversion Of the
ore from pigiron the product will be sent
to the open hearth steel plant, where 1t
will be turned into bars. The rolling mill
will reduce the bars to plates of the requi-
site thickness. and the plates in turn will
pass through several baths to remove the
oxide Of iron. The next step toward turn
ing out Of finished plate is to dip the
plates In melted tin, and the finishing pro-
cess is to pass the plates through cold
rollers. which polish the deposit of tin.
The tin that will be used will be imported
from Tasmania, and can be laid down on
the sound for much less than in the eastern
r. ..--4-