The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1899-03-22
THE BANKING
SITUATION IS
MUCH IMPROVED
San Luis Houses to
Resume Business.
INSOLVENCY FOR ONE ONLY
NORMAL CONDITIONS WILL
SOON RETURN.
To the Recent BountifuI Rains
Throughout the County Is Due
the Radical Change for
the Better.
INSOLVENCY FOR ONE ONLY
NORMAL CONDITIONS WILL
SOON RETURN.

AS anticipated in yesterdays Call, the
Bank Commissioners have granted the
request of the Commercial Bank of San
Luis Obispo and the Citizens Bank or
Paso Robes to resume business. At the
meeting of the Commissioners the situa-
ton of the financial institutions of the
southern part of the State was generally
discussed and the condition Of affairs was
found 10 be much brighter than 1t was a
week ago. OF course the recent 1alI or
rain upon the dry fields has had much TO
do with the Improvement Of the situation
This is shown by the following letter re-
ceived relative to the opening of the TWO
banks mentioned:
SAN FRANCISCO, March 20. 1899.
To the Honorable Board OF Bank Commits
siOners; Gentlemen-Acting under lns tc
tons of the Board Of Directors OF the COM
rnercial Bank of san Luis Obspo, beg to
petition your honorable board 20 permit the
said Commercial Bank TO resume business on
or after March o. 1899. In justification of the
request I respectfully submit;
First-That under the excitement OF the mo-
rnent I let a large portion OF the assets De
Ivrtrren OF bv YOUR esteemed examiner, which
assets are absolutely good, ana l oHer -oo
some of our good collaterals and securities en-
tirely, as explained verbally to your honor
Seoan51fter careful revision I claim that
our capital is not impaired to the extent OF
over $50 900. and that with a favorabie season
this shrinkage will be mostly %ipe PEG ;1to tbe
Third-Our shareholders Will put INTO tne
bank a sum of $4,000 cash. which mas beeh
offered to US and which will not be paiq oech
and no dividend Will be declared uhILl your
Honorable Body is fully satisfied that the cap
ftal is not impaired any longer
F-ourth-Before opening we VIII get an eA-
tension from our larger depositors so as TO
be absolutely certain that the READY means
nJeced ar our disposition are ample Tor al!
evantualities. With the present outlook OF
the season a very bright future awaits our uL
bank and we trust you VIII hlhaiy saanl 0u+
reouasr and assist US to thus overcome ouf
diffcuIties in which we were plunged through
the closing OF the County Bank: Very re-
spectfully, MOI n e I5aSi5sr1+
The permission was gladly granted, the
understanding being that the ldIse uS-
positors are not to Withdraw IneIL Itiol11S
for six, twelve and eighteen months, ac-
cOrding 10 the amounts. At the present
time there is due to the depoSlloIs S-9''-
449 81 and to bankers S66O55 81; +,,a Of
similar request was made by the Of
fcers OF the Citizens Bank OF Paso Ro-
bles which was granted. as the depoSltoI ;
had made promises the same as those OF
H. Ia ger hank. Its shareholders will put
S15 OO0 in cash into the treasury at once
AT this bank there is now due deposlLorS
S43 676 70 and to bankers S36,SOZ 90 me
commissioners are satisfied that ere long
both institutions will be on their feet.
OF the County Bank, the nrsI 70 CIoss -
IFS doors. which caused the suspension or
the others there IS different story 10
tell It's affairs are in such condltion
that the Commissioners are Sat1sned that
4he hest interests of ali concerned Will be
subserved If the institution goes into IN
solvency- Hence II was declaed 10 lep9at
ton that he take steps TO throw the bank
into insolvency From all Ia accounts n there
30 nLIers S14q Sq3 a. The assets have been
sealed down to about S517 900. In the same
list is the little bank at Templeton: which I.
went down when the larger banks rel. us
Cff7cers have notified the Commissioners
that they desire to 60 out of business. but
in doing so they will retire in good shape
and no one win lose by the dissolution Of
the concern. Permission has been grant
ed to do so.