The herald. [microfilm reel] (Los Angeles [Calif.]) 1893-1900, 1897-07-29
OFFICE OF THE HERALD,
July 2S, 1895

cate IndI these SECURITIES Z qullc edStIly
sought after as desirable investments.
The bidders are numerous and the prices
offered show that school bonds are re-
earded as gilt-edged. Chino school bonds
were lately taken by De Van & Co. to the
amount of $4,000 for premium of 1920.
These bonds are ten-year, per cent, or
an average of eight years, which makes
the net return to the investor a little over
81 per cent. Riverside school district
bonds for $4,000 averaging eight years,
were awarded to the Oakland Bank of
Savings for premium of $685. or net re-
turn of a little less than AZ per cent. There
were nine bidders. Vineland school dis
trict bonds of Kern county, for $4,000, aver
age eight years, and drawing per cent,
brought out seven bids and fetched a
premium of $780, equal to trine over 81
per cent net, to the Bank of Bakersfield,
the purchaser. These are straws which
show how the attention of investors has
set in this direction.
4
At the same time the complaint is heard
of the difficulty of disposing of street i'm
provement bonds which draw per cent.
There was a reason for this inertia at
a time when the constitutionality of the
act under which the bonds were issued
was called in question, but now that the
supreme court has definitively settled this
point in favor of the bonds, it is a sim
gular fact that contractors have difficulty
In placing them at S.. Yet we are informed
that such is the case.
Henry Clews under date oath inst, says
in his circular:
The large volume of exports assured by
the agricultural prospects, together with
falling off i'll imports consequent on the
advanced tariff duties, can hardly fail to
turn the foreign exchanges in our favor
during the fall months, and it would not be
surprising should We witness extraord-
mary imports of gold between now and
next January. Heretofore Europe has
wanted more than anything else our gold,
and taken it from us frequently at incon-
venient periods without hesitation or stint
Our safety now is through their actual
necessities; they are compelled to take our
wheat in such large quantities as to enable
us to keep our gold; this Is especially desir-
able for us, while it is equally desirable
to send out of the country as much wheat
as we can at anything like the present re-
munerat1ve price to the farmers. European
aid to the stock market has not come this
time from their buying our securities but
IL mas come from their buying our products
which is the most substantial assistance
they could possibly have given this coun-
try. Our wheat goes forward for con-
sumption never to return; whereas, if our
stocks had gone forward instead thew
would have been sure to have come back
again upon us al an nconvenent time in
all probability at higher range of prices
than they had been purchased at and the
benefit would have accrued to this coun-
try's detriment as measured by the profits
in connection Herewith.
y
The gold reserve of the treasury has
been gaining considerably during the past
week, and stood on Saturday, 18th inst.
at $143, 231,6 GIG. This is a gain of about
$1,225,O0O during the week. A large part of
the gain has been at IT,: minis but there
have been also some deposits of gold in
exchange for small notes. The gold bull
hon in the treasury is s27 754. 066 and the
gold coin is s152, 1875 500, including that held
against $37,257,959 in outstanding gold GER
tihcates. The supply of currency for ex-
change and other purposes is still large,
amounting to $2S.549,967 in United States
notes. $31 .521. $50 in Sherman treasury notes
and $S1, $50 in free silver and silver GER
tlncates. The treasury receipts are not
running at so high a figure as for two or
three months past. They have been ST.
S36,9O2, but expenditures have been $32, $50,
OOO, and 1t is doubtful if this deficit of $14-
793,O97 can be wiped out during the re-
mainder of the month. The expenditures
nave been large as is always the case at
the beginning of the fiscal year. because
dlsbursing officers make their heavy drafts
for engineer operations and other purposes.
There have been several special items this
year which have still further swelled the
Iii. o. Onn nna
Tor sugar bounty and $500, 900 under a de-
cision of the courts. July is also one of the
months of heavy interest payments when
the amount called for is in excess of
100000.
Press dispatches from Kansas City, Mo-.
announce that the Midland National hank
and the National Bank of Commerce. both
OF the same place, are to be consolidated
as the National Bank of Commerce. In
fact, it is said that the plans have reached
stage where only the sanction of the
comptroller of currency is necessary to
consummate the deal.
\ + 4
The Farmers and Merchants bank is re-
ferred to in the following manner by the
New York Financier of 18th inst: The
Farmers and Merchants bank of Los An
geles, Cal, reported under date of June
Scth, cash on hand, $649,294; cash due from
other banks, s1,059, $780, u. S. and other
stocks and bonds. $3.50, 1888; loans and dis
counts, 2126,1S7; deposits, SO. 154, 1885, cap
iatl, 5OO,0O0 surplus and profits, $SSS, 76a.
The banks reserve, counting its total
available cash, is "a per cent of its depos-
its. Its loans and discounts and cash ex-
coed deposits by $685. In other words |
If the bank went into liquidation it would
have, in addition to the last sum, real
estate and fixtures and bonds amounting
TO $I0S.OS4, exclusive of its capital, surplus |
and profits, which amount to S19SS OOO |
In the State Roll of Honor which this |
paper published June 2Sth, the Farmers
ana merchants bank stood forty ninth in |
the entire system. The March returns on
which the position was figured gave the
surplus and profits at $751; 1872. 1t is evident
that IN the short time intervening the |
bank has increased this fund s3l. 2u. which |
goes to show the able management of the |
institution
Senator Butler has introduced a hill
providing for the establishment of a sys-
TEN of postal savings banks under the
supervision of the acknowledgements and
the secretary of the treasury 1t creates |
every postoffice a savings bank, permit |
ting the opening of accounts on not less
than so cents, and permitting no deposits
of less than 10 cents.