The herald., 1897-11-21
OFFICE OF THE HERALD,
Novemher 90. 1897.

" November 20. 1897.
sH>Another striking example Of the ten
Sl>ncy toward GENERALIZATION in the busi-
<esss of banking. says the New York FL
Gancier, was furnished last week by the
Xbsorption of the National Bank Of the
8epublic by the Fourth-street National
- Philadelphia, the former institution
<&sing into voluntary liquidation. We
have in previous issues commented on
HE increase In business which followed
oie merging of interests of the larger
(Sstitutlons in different cities. and there
t1nia bank. already the largest in the
keystone state, will show proportion
We gain, now that it has taken over the
0&siness Of such prominent rival. 1t
XDuld be useles at this time to repeat
ne arguments that pass current when
SEer the matter Of consolidation Of
Ihnks Is mentioned. Experience more
gan theory points to the conclusion
Cat success follows every legitimate
Nove made in this direction. The Ma
Which took over the business Of two
*Ncal banks, increased it's deposits 245
ger cent within twelve months, and the
National City bank of New York. which
absorbed the Third National, has prac-
Ideally twice the deposits reported one
year ago.
THE matter Of bank consolidation has
peen receiving close attention in flnan-
cial circles In Los Angeles 1t was mooted
some time ago. and negotiations were
carried on for some months, but were
finally dropped. Now 1t is said there is
again some prospect Of change.
Los Angeles has more banks than are
actually needed for the business done.
but we doubt whether anything will
come Of negotiations so long as they are
confined to the officers Of the respective
institutions, who draw salary and derive
prestige from their positions, neither Of
which they desire to lose. If, however,
the stockholders Of any bank should take
an active part in promoting the consoli-
dation idea, on the ground that dividends
would thereby be increased. there would
be some ground for the expectation of
proximate changes.
=
The great London fire which is still
burning. although reported under con-
troll involves loss, according to latest
estimates, of SO. 900, 900 to $15, ,O0O, 900. The
loss to the insurance companies will be
enormous. and 1t is stated that Ameri-
can companies are largely interested.
Insurance companies shares have
dropped. and consols and India per
cents have fallen heavily on the belief
that insurance companies will have to
realize some of their investments.
The statement Of the New York clear
ing house banks for the week ending No
vember 18th, viewed in its general re-
suits, is decidedly misleading. The loans,
for instance, are reported 81. .2S1, 100 high
er than the week preceding. whereas the
loans of sixty-four of the sixty-five
banks in the clearing association have
fallen off no less thar s5.1S7, 100, the de-
crease having been more than offset by
the increase of $6.41S,20O reported by one
large bank which occupies a prominent
position with reference to the Union Pa
cifc settlements now pending. Just what
the heavy loan expansion indicates spe-
ciflcally is hard to determine but that
1t Is involved in these settlements is
doubtless true. Otherwise the business
Of the banks has not been so good, forty.
two of the institutions individually con-
sidered having decreased their loans.
The item Of deposits is also of a mislead-
ing character and with one bank elirni-
mated, the loss for the week has been
sS.425.200 Adding the increase Of $6.413..
800 reported by this bank, the gain be-
comes $2.9SS,700. as given in the clearing
house totals. Here too the Pacific pay.
ments are in evidence. But treating the
statement in this manner that is con-
sidering the bank making the greatest
changes apart from the rest, 1t is found
that the total gain of 81, ,SS1 100 in cash
riade by the banks is to be credited en-
trely to the sixty-four institutions. as
tie bank reporting the heavy expansion
ia loans and deposits has almost pre-
'sely the same reserve carried the week
PREVIOUS. AS the increase in loans and
deposits of this institution were iden-
tical, it follows that the sixty-four banks
lost heavily in loans, decreased their
cash $1.3oO,0OO, and their deposits SO, 425,-
200. The statement thus treated does not
balance. but that is all that can be made
out Of it. The actual facts are that the
banks are gaining money. and as interior
institutions are over-supplied with cash,
the chances for firmer money market.
even with the heavy payments due the
treasury, are growing less from day to
day.-New York Financier.
Interpretations
Pajaro Valley Evaporating company:
0,000; subscribed, $500.
Bakersfield Lumber and Commercial
company. Bakersfield; 100000 all sub
scribed.
Union Milling company, Los Angeles:
capital stock actually subscribed, s11, 500.
Mortgages, $1,000 and Over
Clinton T. Fish to r. r. Pierce
Lots and z. M. Fish's resub., IS
years, 10 per cent .........,.. q. .ooo. .Oo
Henry Sch9efer to Ernst F. c,
Klokke-Part lot 12 sub of gar