Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1907-10-31
SAN FRANCISCO
BANKCLOSES
ITS DOORS
INSTITUTION SOLVENT
CLAIM OF DIRECTORS
Inability to Take Advantage of
Clearing House Certificate
Plan to Protect Resources
Reason Given for Suspension

Try Morning journal Special leased Wire.l
san Francisco, oct. 30.-With the
exception of the furry caused by the
closing of the California Safe Deposit
and Trust company, this was very
quiet day in banking circles. The
plan of issuing clearing house cerufi-
Gates did not seem to cause any in
convenience and small amounts Of
coin were paid to numerous depositors
10 meet payrolls. No attempts were
made to withdraw large sums from
any of the clearing house banks, and
the business at the savings banks was
normal Beyond stating that they
were in no way alarmed about the sit.
uation. local bankers declined to pre-
diet what would be the effect of the
closing of the California Safe DepoFt
and Trust company.
one OF the officials of the bank
said:
"Our bank is all right and this ac-
ton is simply a step taken for the
protection Of our depositoLs. on ac-
count OF our nOn-affiliatiOn with the
Clearing House association we nave
had to payeout cash on all demands
because we. were unable to secure the
certificates utilized by the other
banks A distressing feature of TINS
situation was that all Of the other
banks who drew on US were PAID IN
coin. while in our dealings with them
we could only get certificates in re-
turn. We have ample money on hand
TO meet all reasonable demands ana
we are on a firm basis financially, nut
of course we could not meet all OF
our demands II they were presented
in a single day. | wish to emphasize
that our closing has not been caused
by any embarrassment, but Is simply
for the protection of our deposltors'
We have communicated with the bahk
commissioner. -,
The financial situation in this city
is considered satisfactory 10y the all
the leading bankers. James X. keIy,
president of the Hibernan Savings ana
oan society said today that there If
nothing that need cause depositors the
leasing alarm. The Oakland clearing
ing house association met last hlsht
with the bankers of Oakland ana
Perkeley. and decided to act in mar
monv with the San Franci scoclearing
house in the issuance Of clearing
house certificates.
Manager J. Dalzell Brown of the
California Safe Deposit ana trust
companv. and former Judge Charles
w. Slack. its general counsel. denled
tonight that there was any truth III
the suggestion. made in banking CIR
ClpE. tlHt SDttuldllNh mas h''H ~
duleed in by that institution. They
also denied that the paper of the Wes-
tern Pacific Railroad company was IN
any way involved in the banks sus-
pension.
"'rhe California Safe Deposit and
Trust company" said Mr. Brown, has
been established since 1872 and has
done a conservative and strictly legiti-
mate banking business. II has -four
local branches The reason we never
applied for membership in the clear
ing house was that we could clear as
conveniently through the Anglo
Californian bank and save their clear
ing house charges. which ar" consid-
cradle. n Is probably true that clear
ing house membership would have
helped us to tide over our present dir
hculties.
The rumors connecting the banks 3
name with the affairs of the Western
Pacific no doubt sprang from the fact
that I am treasurer Of that corpora
tion. and, with with other officials OF
the bank. promoted 10. The bank is
not. however. involved In the Western
Pacific and only "A small amount of the
corporations funds Is on deposit here.
The Western Pacific has about fis,-
O0O. 600 distributed in deposits among
forty banks here and elsewhere in the
count rN."