The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-04-25
BANK SITUATION A PUZZLE.
STATE CONFERENCE HELD IN
OAKLAND TO CONSIDER IT.
No Banking Business Can he Done In the
state Owing 10 the Legal Holidays
Son Plan Of Meeting Emergency
Notes and ~ Avoiding Runs Needed.

$50
held in Oakland this afternoon OF the state
Bankers Association. attended by Gov
Pardee, Acknowledgement of the State
Webb and the State Bank Commission, to
determine upon come relief for the stringent
money market throughout the State caused
by the enforced suspension of banking
business upon the Governors thirty days
interdiction.
Representatives from over a score OF
the large interior valley banks, the big con-
Germs of Los Angeles and Sacramento ana
the Oakland institutions were in attendance
upon the meeting.
The problem of permitting banks through
out the State to do sufficient BUSINESS to
open up the paralyzed avenues Of trade
without mourning the dangers OF a run by
the depositor was the question that was
discussed this afternoon. TIN paralysis OF
all of the San Francisco banks, acting asthey
did as the chief nervous centre for the
money market of all the State, has brought
a series crisis to the banking business
throughout California and one which 1t is
realized can only be alleviated by careful
and discreet manipulation.
The question submitted to the bank
commission this afternoon was: can the
banks do a limited business of exchange
and honor a limited number OF drafts with
out doing injury to the San Francisco banks
and without mourning the danger Of being
swamped by timorous depositors;
1t was called to the attention of the meet
ing that with the gold supply intact in the
San Francisco Mint and with the generous
reserve of from 40 to 60 per cent. which is
carried by all Of the banks, emergency
notes might be paid without seriously I'M
p~erilling the banks themselves and to the
great convenience of the now stagnant
trade.
Yet the question arises-if a bank opens
its doors for business is there anything TO
prevent all depositors from demanding
the full amount of their funds and running
a score Of banks where the heaviest drafts
would be felt?
Although the session of the bankers was
of an executive character and the business
of the delegates was carried over until to-
morrow without any definit announce
ment being made of it1 progress, the belief
prevails that the bank commission, up
ported by the Acknowledgement, favors a
limited payment upon emergency demand
until the San Francisco banks can open
their doors at the end Of the thirty days
period of quiescence.
At that time sufficient money will have
been drawn from the Fast to meet every
demand and the dangerous crisis when
the banks now fnce will have been over
coIne
At a meeting of the Oakland bankers
this morning there were present repre-
sentatives of the following Oakland insti-
tutions. Oakland Bank of saving, Union
National, First National, California Eank,
Central Bank. Farmers and Merchants,
State Savings Bank Security Eank and
Trust Company. West Oakland Bank and
Trust COMPANY. An adjournment was
taken at noon in order that the represent
tatives present might attend the general
Meeting Of the State Pankers' Association,
which convened at > o'clock this afternoon.
Though no news was given out on the
~resllts of the Oakland bankers meeting, it
ia learned that the business of the meeting
had largely TO do with the necessity of max
inc small accommodations TO patrons even
before the Governors embargo on banking
b,,siness for the next thirty days shall have
been removed. The spirit Of the bank
presidents seemed to favor the conservative
disbursement of funds now being drawn
from the san Francisco MINIS gold supply
only upon the most urgent orders.
This is to relieve the total stagnation Of
business that must necessarily continue
until the san Francisco banks are in a no
sition to open their vaults and resume bust
ness. There is no disposition. however, on
the part OF the Oakland banks to takea1van-
tage of the temporary gripping Of the San
Francisco ba hiking houses. With this re=er-
H. -. ,-,,,- II ypnz .lnniHnI thai chat
ever steps the Oakland banks may take
toward the temporary alienation, of the
tishtened money market should be solely
in the genera interests of the financial
situation and not for the immediate profit
of any Oakland banking houses,
NJ ore shipments of gold from the San
Francisco Mint. such as the million dollar
consi gnment tina came to the Union Ma
tional yesterday afternoon, are expected
o-day All Of the largest banks of Broad
way have made accommodations for the
receipt of considerable sums in gold specie.
Before the afternoon has passed fully
"a 600 600 in gold will be resting in the vaults
of four at least Of the Oakland concerns.
To-day many small notes were paid
over the counters of three OF the banks
simnly az accommodation for the holders
and to relieve pressing financial needs.
But no general banking business can he
lone until the present period OF Inhibition
il over.
1t is understood that this morning the
Southern Pacific transferred to the credit
of the Ga kland Bank of "a wings $4,000 to
be used AZ u special contingency fund 10
fortify tn institution against any heavy
drafts that ma v be made upon II before
the San Francisco banks can regain their
feet.
The Fireman's Fund Insurance Company
to-day opened one vault and the paper
and books at once burst into a blaze and
were entirely consumed. This shows what
NAV be expected if the bank vaults are
opened too o
cram m AynINE S4Y'g mn y NE