The herald. [microfilm reel] (Los Angeles [Calif.]) 1893-1900, 1898-01-08
OFFICE OF THE HERALD.

OFFICE OF THE HERALD.
January I, 1898.
There are more fools than sages; and
among the sages there is more folly than
wisdom"
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There is a general feeling among the
officials of the savings banks of New York
city that beginning with the new year
there will be a tendency toward q lower rate
OF interest than has heretofore prevailed
In fact. says the American Banker, some
OF the semi-annual announcements of div
blends Just issued are accompanied by
notice that the rate of interest paid to de-
posltors will not exceed S1k per cent Will
lam Hanhart assistant controller of the
Emigrant Industrial Savings bank, said:
Conditions are such now that the vari-
Gus banks are not earning as much as they
Old some years ago, and it is impracticable
TO pay rate OF interest that would cause
drain upon the surplus No matter how
strong bank is or how secure the times
there Is no telling at what minute an emer
gency may arise which would require all
the surplus to tide matters over. Our bank,
- 1893. when period Of panic caused such
D heavy run that our surplus had to be
drawn upon. and for the next two years
We we're able to pay per cent to depos-
itors, last year, however, our rate was
again lowered to 3ia per cent. and 1t will as
suredly not be more than that this year"
One cause Of the tendency to lower rates, |
as given by men who deal largely with the
savings institutions, is that the insurance
and trust companies and other corporations |
with large surpluses are willing to loan |
money on real estate at as low rate as
By, and in some instances per cent. The |
banks formerly got these loans at Az and |
per cent, and they have been forced by the |
competition to reduce the rates.
The operations of the San Francisco |
clearing house for the past year show ag-
gregate clearings of S75l ,245 AS as against
$685. 229 sos for the year 1896 The amount |
required to settle balances last month |
was IS, 660.943. against Sc. 4S9 Isl for the same
month last year. Balances for the year
were $96,l15.4 400, against 800 491, 4S3 in 1896
The clearings for the last year show an
Increase OF 10 per cent over 1896. The total
Is the largest in several years. and indi-
Gates general improvement in business.
Comptroller of the currency Dawes has
given out an abstract of the reports of the
condition. December 18th. of the national
banks of San Francisco. 1t shows total re-
sources of $l5,24S.9 67; loans and discounts
amounting to sS,4OS,912 and a reserve of
81 ,23O, of which $3y17S, Sl2 was in gold The
deposits aggregated S7.610O12, and the aver
age reserve held was 41 66 nor cent
The supreme court of Georgia held in
the recent case of the German-American
Mutual Life association VS.. Farley. exec
utor, that where, in a written application
for insurance which was prepared by the
agent of the company who solicited the in
surance and delivered the policy, the appli-
cant made certain statements as to his
physical condition, as to the general state |
of his health, as to his rejection by other
Insurers to whom he had previously ap-
piled for insurance. which statements were
warranted by him to be true, and which
If false might materially affect the risk,
policy of insurance which recited that ii
was issued In consideration OF certain
statements and of certain other valuable
considerations therein expressed, but
which did not in terms provide that it
should be void in case such statements of
iaSt ioHOuiu pIONe ~ ne uHtL,ue, II was not
voided as consequences of the mere falsi-
ty of any such statements where 1t ap-
peared, that even if they were false they
were not fraudulently made. and that the
fact that they were false was known to
the agent of the insurer, who had himself
prepared the application and procured the
applicant to sign 1t. The court further
held, that If after a policy of insurance
had been issued knowledge were brought
home to the insurer that certain state
ments material to the risk made by the
assured to procure insurance were untrue.
but which were by him warranted to be
true. and Notwithstanding such knowledge
the insurer thereafter received the prem
iums in accordance with the terms of the
policy. he would after loss be held to have
waived any forfeiture which might other
wise have resulted from such breach of
warranty and would be thereafter estopped
to deny the validity of the policy.
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The following monthly estimates OF fire
loss in California and over the coast dur
Ing this year will be found not very far
cat of the way. says the Insurance Sun. |
when the official figures are filed:
California. Pacific Coast.
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