The San Francisco call., 1908-04-12

panic was IN fuii SWING. 4it1ie
knot or bankers emerging from
meeting OF the clearing house
committee stopped a moment on the
sidewalk at Pine and Leidesdorff
streets a. discuss the gloomy situation.
and one OF them told this story by way
OF illustrating the position of the banks
and the optimistic spirit which he
thought should be cultivated:
There was z man once who always
looked on the bright side OF things. no
matter what happened. Having climbed
70 the roof Or 10 story building ne
lost his balance and fell. and as he
passed. third floor window he was
heard 70 mutter: Well. I'm all right
yet anyway
something Of the same determined
cheerfulness has been maintained 10y
the bankers Of san Francisco during
the last two years. in the midst Of in
cidpnts which tried their very souls
Two events OF tremendous import, the
fire and the panic. have been succes-
sively and successfully encountered and
the banks stand in probably stronger
position today than at any time in 5t
years.
out OF tho stress has come a feeling
OF greater dependence and sympathy.
snutuality OF interest that never before
zves recognized. Fighting their COM
mon battles side by side, maintaining
= solid front against dangers thaf
threatened all IN common, bankers have
come to a realization OF the principle
that each bank is TO an extent respon-
sible for the safe management Of every
bank and that the injury or one is tht
injury Of all
In some communities this is not
new thing. There are many rea sons
why it is novel in san Francisco. First
.-sf f-f f.1- f.srf
nony, that conspicuous absence Of en-
lightened selhshncss. which has been
the Characteristic OF this city
businessmen for years. FurUner TN
larger commercial banks have been of
different types alien 10 each other in
method and in purpose. There are
three general groups-the national
banks the state banks and the foreign
branch banks. Being OF almost equal
weight and influence. none has yielded
70 the others 'or sought to bring abouf
community OF interest. but each has
rested secure in the complacent refiec-
tion that its own particular system was
pre-eminenly The best. Even within
the groups the individual bankers have
had little 10 Go with each other. and in
actual truth il may be said that no
rank cared whether fhe others -four
fshed OF died. 50 long as lis own bUsi-
ness maintained an even tenor. The
single interest in common was the
clearing house which was regarded as
an excellent modern device for the eN-
change Of checks. but which In no other
sense was a bond OF unity.
The fire changed this. ia large
measure and what the fire did not
accomplish the panic completed. When
the town lay in ashes and no banker
knew absolutely that his vaults were
intact. when the clearing house com
mituee met day after day ia pri-
vate house in the unburn@d distric.
TO review the perilous situation and
make plans for the dreaded morrow.
the cold truth was gradually brought
home that no bank may live sufficient
unto itself. unheeding OF its neigh
bors And year and q hair later
when specie payments We're suspended
and fear and distrust were on the
faces OF all' depositors whether OF
littlc banks or big, there arose a
stanch respect FOR the moral taught
in the old fable that bundle or sticks
IS mighty 10 resist. where each stick
slngly is easily broken
The logical outcome has been the
greatly Increased power OF the clear
ing house association. the natura.
vehicle by which centralized authority
may be exercised.
Insurance Meant LUXURY
Not since the days OF the argonants
. has there been such an orgy Of money
spending as occurred in the summer
and fail OF 1906. when the insursno
companies passed our nearly sI50.00o.-
600 in real cash 10 the good citizens
OF san Francisco. The temporary
stores. cheap shacks filed with costly
wares could not supply goods fasl
enough TO supply the urgent demand
Merchants boosted that in 40 presiOu.
period had they enjoyed so large
volume or Christmas trade Bankers
pointed with pride 10 their swollen de-
posts. called the worlds attention t.
tsc fact that stricken san Francisco
having lost a triling $3.50. a.000. hae
still more money left IA is pocket.
than all tho unstricken cities on la,
Pacific coast
Which was true. Bat The fact wa:
somehow overlooked that san Fran.
cisco had been merely caShiAG ia Il.
myriad resources at q very heavy dis
count This became apparent later 81
when the streetcar strike halted th'
mad rush OF business and the people
had time to reflect that the liquid as
sets OF the city had been hardened int,
permanent forms OF steel and ston,
ana merchandise.
The banks began 10 notice tn,
change soon after 1907 began ans
while they were stsII boasting ths
the ciearings for the previous years