Los Angeles herald., 1907-04-16
HOW TO SECURE
INTEREST RESULT
USUAL METHOD ADOPTED BY
BANKERS
Pacific Savings Bank Is Prosperous.
Chicago Comment on Los Angeles
Financial lnstltutlons--se.
curity Situation

This authorized statement is made: II
IS customary with banks and business
houses to calculate interest on the basis
l-6 of a year. Hence, at the rate Of 6 per
cent interest on any amount for go days
is per cent of the principal, and Is
iound by disregarding the cents and plac-
ing the decimal point two places to the
left. Thus interest for 60 days at per
cent on $125115 Is $l2.51. Interest at 6
per cent for other items than so days is
FOUND by aliquot parts of GO days, for ex-
ample: To find interest on $3.50 for 30
days at per cent?
Interest for so days q per cent of
Interest for 80 days Gk of 6Oj...,...... rs
Interest for days Oils of 80 days).. 10
Interest for "a days equals. 85
The Pacific savings bank. located, at 54a
South Spring street, began business in
1904, and is fiourishing institution, with
ceive per cent on ordinary, and per
cent on term deposits. The officers are
Ralph Rogers, president; James II. Blan-
chard, vice president, and Lee l.. Soule,
cashier, directors, Ralph Rogers, DR.. r.
%. Yoakum, Ben w. Hahn, DR.. C. il.
Carleton, S. Fl. kellogg, M. E. Cary, j.
l.. Baird, William Hudson, r. e. Wells
National Finance, Chicago: THE
banks of Los Angeles have shown a
marked increase in business during the
past year, due undoubtedly in great part
to the destruction of San Francisco a
year ago. For the past year many of
the former residents of the latter city
nave moved either to Oakland or Los An
geles, botu of which cities have proSpered
TO great extent at the expense of San
Francisco. The same is generally true
of Seattle. Los Angeles is now city of
considerably more than 100000 popula ton,
and her thirty-nine banks reflect the gem
cral prosperity of the city and it's thriv
cember 81. 1906, the thirty-nine banks,
most of which have been organized dur
ing the last decade, showed total paid
In capital of s11, ,15S 1898; surplus and
of 100000, 553.2S, and loans. discounts and
overdrafts of $72, o06, ,3S4s0 This is an ex-
cellent showing for any city, even though
considerably larger than Los Angeles
claims to be-
stock exchange house whose letters
have been very conservative for some
During the year 1905, there was new
security issues aggregating about $780,
00,000 The additions to this total recently
Will bring 1t in little over year well over
81. 900 100000. OF this total probably one
half must find permanent lodgment with
investors in this country or abroad in the
capital is still being absorbed Is quite evil
dent. The investor can readily employ
his funds at per cent interest either in
neighbors, or he can choose from a large
mass of securities which will yield him
about that rate Aside from the de-
creased demand for borrowed funds.
which may result hereafter from liqui-
dation in business, it is difficult to see
any material decline in the rates for
money. There are two possibilities of i'm
portance which promise some relief to the
situation. The first is the enactment of
legislation greatly increasing the volume
of bank notes that may be retired in any
one month-which is expected TO encor-
age the banks to take out additional cir
and directing the deposit Of custom re-
Ceipts In banks. The second is that this
country appears to be in very good
position to draw gold in volume from Lor-
don. and that the Bank of England at
present is in possession of very large