The herald., 1897-07-08
OFFICE OF THE HERALD,
Los Angeles. July {, 1897.


Los Angeles, July {, 1897.
The President and Secretary Gage are
now said TO be unostentatiousy at work on
plan for the revision of the currency and
banking acts. and this. says the American
Banker. notwithstanding the talk of some
Republicans that the currency system is all
right. or will he all right II the new tariff
bill provides-enough revenue to meet the
expenses of the Government. But the first
step will be the recommendation of the
appointment of a commission. 1t is also
stated that Secretary Gage has written to
j. Edward Simmons, president of the
Fourth National Bank and also to Fred
erick D. Tappen, president of the Gallatin
National Bank, and other bank presidents
throughout the country not named, re-
questing them to be prepared to make rec
concentrations on the currency and bank
ing questions to a currency commission
that, it was hoped, would be appointed be-
fore long. 1t is believed that this is one of
the results of the informal dinner which
New York bankers recently rendered Mr..
Gage
In leafiet issued by the Dominion Ma
tional Bank of Bristol, Va.-Tenn., may be
found the following sensible rules which
are quoted with approval by the Chicago
Banker and Investor:
l. If you wish to open an account with a
bank provide yourself with a proper in
PRODUCTION. Well-managed banks do not
open accounts with strangers.
2. Do not draw check unless you have
the money in the bank or in your possession
,t I,
osity of your bank by presenting or allow
ing to be presented your check for larger
sum than your balance.
3. Do not draw check and send 1t to
person out OF the city, expecting to make
1t good before it can possibly get back.
Sonnet times telegraphic advice Is asked
about such checks.
4. Do not exchange checks with any,
body. This is soon discovered by your
bank; it does your friend no good and dis
credits you.
5. Do not give your check to a friend
with the condition that he Is not to use it
until certain time. He is sure to betray
you for obvious reasons. Do not take an
out-of-town check from a neighbor pass
it through your bank without charge and
give him your check for it. You are sure
to get caught
6. Be clear and explicit in bargains.
Z. State your business in few words with
out loss Of time.
s. Don't commit the folly of supposing
that because you trust the bank with your
money the bank ought to trust you by pay
ing your overdrafts.
8. Don't suppose you can behave badly
with one bank and stand well with the
others. You forget there Is clearing
house.
TO- Don't quarrel with your bank. If you
are not treated we'll go somewhere else,
but don't go and leave your discount line
unprotected. Don't think it unreasonable
II your bank declines to discount an ac-
commodation note Have a cloar definition
of an accommodation note; in the mean
ing of a bank it is a note for which no
value has passed from the endorser to the
drawer.
II. Don't fail to arrange your note
promptly on day due.
12. Banks must have abundant security
on loans although your honesty and worth
Is unquestioned. They hold funds in trust
for others.
13. Give your bank credit for being in
telligent generally and understanding its
own business particularly. 1t is much bet
ter informed. probably. than you sup
pose.
IA. Don't try to convince your bank that
the paper or security which has already
been declined is better than the bank sup
poses.
Is. In all your intercourse with bank Off
GERS treat them with the same courtesy and
candor that you would expect and desire
If the situations were reversed.
4 y 4
Referring to the talk about bank consoli-
dations and to several instances of the
kind lately reported at the chief financial
center Of the country the New York Tri-
bune says: 1t is not unlikely that further
announcements of New York City bank
consultations will be made in the course
of the present year. The proposed absorp-
tion of the business of the Third National
Bank by the National City Bank has re-
vived discussion iii Wall street of bank
consolidation possibilities. Bankers as
rule are in favor of fewer banks in the
Wall street community, and, for that mat
ter, throughout the city. Money continues
to pile up at this center, and the recent gold
exports. aggregating about S13, 900 900, have
not served to reduce the lawful holdings of
money on account of the large receipts of
currency from the interior. With money
accommodating at a rapid rate and compara-
lively no demand for it, the banks or at
least many of them. are unable to do such
business as to make their existence
profitable. These considerations lead banl,
directors and officers to believe that a
number of institutions should consolidate
and during recent visit of Controlle,
Eckels in this city he expressed the same
view He said that at least six banks IN
New York ought to adopt consolidation
proceedings with some other institutions.
+ 7 \
The statement of the comptroller of the
currency of date June 80, 1897, shows Ma
tional Bank circulation outstanding at thai
date was $2S1, Sac. 1926, an increase since
June 80, 1896, of S., 43s 166.
+ 4 Z
Twenty-Five mortgages were recorded ir
Los Angeles county yesterday, aggre.
eating SAG. 565 the principal one being from
l.. j. Hammond to Regents of the Uni.
versity of California for $4,000, years al
Z per cent. covering lot L. side Spring be-
tween First and Second.
+ y
LOS ANGELES CLEARING HOUSE
Statement for quarter ending June 30
1897:
Balances Clearngs
BANKS paid IN: taken away
Farmers and Mer-
chants bank. $4194419 s3925 3O1. /,
First National
bank ............. 565,19S.96 3,213, 162. 1!
Los Angeles Ma
tionaf bank. ... 5SS5S4OO 27a3 1os a.
Merchants Nation-
al bank. ........ S32, $685. SO 1.2s5 a17 a.
California bank 145.917.8O SO7. .59S :.
National Bank of