The herald., 1897-08-28
OFFICE OF THE HERALD,
I.oc Angeles Al1p Of 1907

Los Angeles, Aug. 27, 1897.
In confirmation of the statement made
in this column yesterday as to the prefer
ence of eastern investors for municipal
bonds payable in gold coin, over those in
which an option is given for redemption in
lawful money" and the consequent high
er price which could be secured for gold
issue, we quote the New York Bond Buyer,
pronounced gold bug organ, of course,
which says:
'''If it is true, and we do not doubt it is
true, that the demand for permanent in
vestment in municipals increases proper
tionately, we see 10 reason why there
should not shortly be observed even
bigger boom in the best possible form of
permanent, unfluctuating investments
such as gold municipal bonds unquestion-
ably are. We speak of gold bonds solely
because the recent political agitation
makes 1t necessary to note a distinction
between bonds expressly payable in gold or
bonds made payable in the lawful money of
the United States. All municipalities in
every section of the country will come to
understand shortly the necessity and i'm
portance of expressing their good faith
on all their bonds. Gold is the standard
of this, as of all other advanced countries,
and must always remain so. Mu-
inequalities having bonds to sell should
expressly say that they propose to pay
them at maturity in gold.''
1t is an unfortunate thing for the city of
Los Angeles and for other municipalities
in the state that the existing law, as inter-
preted by the supreme court, requires bonds
to be made payable in such a manner as
to impart doubt as to the value of the
medium in which they may be redeemed,
while there is no doubt of the value of the
coin that will be paid for them.
Some other cities have sold bonds pay
able in lawful money, but 1t has nowhere
been contended that they bring as much
money as when made payable in gold. Be
sides the mere ability to sell bond there
is something involved in consideration of
the price it will bring. And then the bonds
have not yet been voted
The American Bankers association has
no reason to be dissatisfied says Brad
streets, with the condition of its affairs
as revealed in the annual statement
made at Detroit by the various officers and
duty of submitting reports The report
of the secretary showed a net gain of
617 members for the year. It now comprises
1853 national banks, 756 state banks PAT
savings banks, 1872 trust companies and 225
private bankers, with combined capital
and surplus of 1904 .607, ,75S and deposits
amounting to s3,17S, ,S32, ,14O. The receipts
for the year amounted to s17,551, while the
disbursements were $145S9. The report of
the protective committee, whose duty it
Is to take steps for the prosecution of
crimes against members, showed that dur
ing the year not member of the associa-
tion had lost dollar through burglary and
that every professional operator to whom
the attention Of the committee had been
called had either been convicted or was
awaiting trial or had been released on
turning states evidence. Moreover, no
notable swindle or forgery had been re-
ported during the year.
+ \ \
A uniform law for commercial paper was
reported by the committee charged with
that duty in April last. According to the
committee all the fundamental principles
of the law of commercial paper, the law
of 10000 reported cases, is in substance
condensed into thirty-six pages. This law
has already been adopted in the states of
New Jersey, Connecticut and Colorado, and
1t will take effect in the state of New York
on October 1st. Another committee urged
the formation of bureau of education to
endeavor to minimize the hostility against
banks which finds expression in many parts
of the country. Comptroller of the Cur
rency Eckels made one of his Characteristic
addresses He insisted that under exist
ing conditions the currency question, talk
ing it by and large, is the most mo-
mentous with which the American states
man has to deal. He declared that COM
plete confidence cannot be restored by
merely increasing the governments in
come, but that even if it could there would
be no guarantee against future impairment
of 1t by the same cause, but that that dan
ger can only be eliminated by rendering
1t impossible to have the treasury the one
source of gold supply for the people of
every nation.
The statement of the New York banks
including the sixty-six banks represented
in the clearing house-for the week ending
August 18th gives the following totals,
comparisons being made with the corre-
spending week in 1896:
1896. 1897
Loans and discounts. .$464, ,91S, 200 s555 17O, 800
Deposits ............. 467, 700 $50, $50, 900
Circulation ........... 15,7S9,SO0 1875, 500
Reserve
Specie ................. 46,S63, ,O00' 92612, 300
Legal tenders......... 79,3S5,60O 1903 3917, 900
Total reserve. ..... .S126, PAS, 800 1885, $50 200
Legal requirement. 116,S4S,425 57,647, ESQ
Surplus reserve.... s9,4OO,175 sSs, 1852, ,45O
\ 4
Copper production in July, according to
the statement of Mr. John Stanton who