The San Francisco call., 1898-12-18
THE BANK OF
CALIFORNIA
ONE OF THE LEADING FACTORS IN THE DEVELOPMENT
 OF SAN FRANCISCO.
Romantic History of the Institution Since Its Birth in 1864 to
 the Present Time.

tiie eHtlre OnlOn. When the story Of the commercial development of San Francisco comes to be written in detail 1t will be found that The Bank of Cali fornia was one of the most important factors that contributed to the city's progress from a mere hamlet to the proud distinction of metropolis of the Pacific Coast.
 The early history of banking in San ffanclSco IS record of conserva tism, enterprise and energy, as we'll as fuc- tuation, disaster and prosperity. The numerous banks which existed in this city prior to April, 1864, when The Bank or california was incorporated, were founded upon ephemeral principles for the reason that they depended upon the business attending the operation of the mines, which was liable to die away at any moment. When, however, agri- culture in California became a recog- n1Zed industry and the magnificent re- sources of the State were being de- Veloped, 1t infused new life into bank Ing, and added the element of security 10 the operations of financial institu- t1ons. Many new banks sprang into ex- istence, and competition naturally be- came so keen that the weaker were crowded to the wall and numerous failures were recorded. Agriculture had become a strong rival of mining, and while the first was building UT the financial resources of the common wealth. the other began to make ex- tensive drafts upon the coin reserves in the banks. With the expansion of the held for the profitable investment of capital the rate of interest declined, and this competition growing keener year by year tested to the utmost the strength of the institutions that sur vived.
 The incorporation of The Bank of Cal ifornia at period when other institu- tions of recognized strength were forced to retire from the field proved that its founders were no ordinary men. These were D. O. Mills and William c. Ralston, the first being president and the second cashier of the new institu- tlon. The secretary of the bank was Stephen Franklin, a business man of no mean ability. The capital stock at the beginning of the banks career was fixed at $3000,000. Some of the best known business men of the city at that time were associated with the banks affairs, and at the first meeting of stockholders the following were elected as a board of directors: William C. Ralston, Louis McLane, William Nor ris J. Whitney Jr., Thomas Bell. Her man Michels, John o. Earl and O. F. Giffin.
 Two years after the incorporation, in
 
 S5,00O0OO, but owing to unfavorable legislative enactments it was found necessary in 1881 to reduce the stock to it's original figure of S3. 000. 0OO at which 1t has remained to the present day.
 The affairs of the bank prospered un- ceasingly until June, 1873, when Presi- dent Mills resigned. He was succeeded in that office by MT. Ralston in July of the same year. The administration of the affairs of the bank by MT. Ralston forms an interesting chapter in the history of the bank including as it does the elements of romance and tragedy, which eliminated simultane- ously in the suspension of the bank on August 26, 1875. and the melancholy suicide of President Ralston in conse- quence of the disaster which over Whelmed him.
 The rich discoveries on the Comstock had an electrical effect uron the San Francisco banks. and The Bank of Cali fOrnia, conducted as it was by a man of extraordinary liberality and enter prise, was to suffer with many others from the effects of over confidence in the permanence of a tickle industry Flushed with the prospects of a golden harvest, the bank officials did not scru- pie to loan as high as $500 on shares of COmstock stock during period of un- eXampled imitation and excitement The reaction which inevitably succeeds imitation in any branch of human en- deavor overlook The Bank of California at a time when it was least able to stand the strain. The result was a sus- pension which. because of it's remark able features, was one of the most Sen- sational of the period. In desnair of seeing his cherished institution reha- bilitated, and confronted by irretriev- able ruin, MT. Ralston threw himself i11f hn mo iniT Tln'e q nnf !,
 Within forty days after the sus- pension of the bank its doors were opened to the public and every obliga- tion met dollar for dollar. A new issue of stock was subscribed by the best men in the city, and under the admins tration of President Mills it entered upon a new career of prosperity. He resigned the office of president in April, 1878, and was succeeded by William AL word, who has since that time ably con- ducted the affairs of the bank.
 President Alvord became a director of the bank in January 1868, but re- signed in September of the same year Subsequently, in November. 1871, he was reelected as director and served in that capacity continuously since. He is financier of repute, whose sound judg- ment and conservative policy have as- serted themselves on more than one occasion. During the panic of 1893, when runs were made upon other ln stitutions, the affairs of The Bank of California progressed as usual, scarce ly without incident. Indeed, it seemed as if nothing was occurring to startle the financial world. Under President Alvord's guidance the bank rode the storm in safety, and holding the con- fidence of the whole community it is stronger to-day than in any period of its eventful history.
 Associated in the management of the bank is Thomas Brown, one of the most astute financial men of the country. His connection with the bank dates from October 1870 when he was elect ed assistant cashier. In July, 1873, he was elected cashier, a position he has held with signal success ever since MT. Brown is a recognized authority on matters of finance. and his Judgment may be relied upon in every emer- gency. He is an affable gentleman and moves in the highest circles.
 The assets of the bank aggregate over $17, 900, ,000 of which s3,00O,OO0 is cash on hand. Its investments are principally in bonds and stocks, and it's surplus exceeds s, 900, 900. There Is due depositors an aggregate of about $10, GOO, 000
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