The San Francisco call., 1910-02-20
Banks Prove High Measure
OF Municipality Prosperity
Financial Institutions With Public Confidence
Assured by New Banking Law, Show
Healthy Advance

OAN FRANCISCO has within three
and half years more than recov-
cred from the disaster OF 1906
Trade has been good and bank deposits
and bank resources have increased.
Much new capital has been brought into
the city and labor well employed. The
year 1909 was a prosperous one in San
Francisco as well as in other parts of
the state and Of the country.
As elsewhere in the world the cost
Of living in San Francisco has in
creased Rents are higher. Prices
Of commodities are on higher plane
than they have been. This is due in
part, TO world wide causes. Partly
this increase is because skilled labor is
seeking not only to maintain but to
raise its standard Of life. And to
large extent it is succeeding.
Incidental to the closing of the year,
it is customary to cast UP the results.
and place the records Of progress along
with the figures of other years; to
balance the accounts and set new
standards for future endeavor. 1t is
pleasant TO discover that 1909 compares
favorably with preceding years in the
achievements Of trade and commerce
in san Francisco. as judged by the
usual methods. The bank clearings
Tor 10 years past. shown in the fore
going table, prove this.
Moreover. the bank clearings in this
city, TO q greater degree than in most
other cities, understate the volume of
business done. The savings banks,
which constitute so important an ele-
,nent in the banking community, do not
clear their checks through the usual
channels. Nor did the United States
subtreasury until shortly after the first
Of the new year. The clearing of
checks drawn on the subtreasury
through the clearing house will result
sn adding at least 100000 week to
the cIearings.
In the thirty-fourth annual report OF
the san Francisco clearing house asso-
citation. dated February s. 1910, the
cIearings for 1909 are shown to be
sl.s79S72.57O.O6. and for 1908 sl,755-
141.S5OOS, a gain of 1858 per cent.
This gain" says the report, 'fs due
probably to the increase in trade in
real estate. merchandise and stocks and
bonds The statistics for 1903 of ex-
ports and imports by sea show quite
an increase over those Of 1903. How
ever, il should be borne in mind that
the business of 1908 was curtailed from
the effect Of the panic that commenced
in October, 1897, as well as by the pros
pective changes to be made in the
tariff. The daily average clearings have
increased steadily, however, with the
exception Of the year 1907. since the
organization Of the clearing house in
1876. In 1850 the average daily clear
ings amounted to little more than
$780, 600. In 1890 they were close to
s3,ooO.OOO. In 1900 they were close to
ss,5oO,OOO. and in 1903 they amounted
10 more than ss.5OO.oOO. The highest
average daily clearings were during the
fall Of 1906 and the spring Of 1907. when
the insurance companies were paying
the losses sustained in the disaster of
1906.
The old year closed and the new year
opened in san Francisco with a salts
factory volume OF business, which still
continues. One evidence of the eapan-
sion Of trade and commerce is the active
demand for money for commercial pur-
poses which now prevails and which
has been prevalent for some months
past. Loaning rates have been firmly
maintained and every available dollar
in the banks quickly finds a borrower.
In view Of the tendency toward higher
prices, whether Of commodities, labor
or rents, is it unreasonable to expect
that interest, which is merely the rental
OF credit, viii sooner or later share in
the advance.
with the passage Of the new state
bank act, March /. 1909, a new era in
banking affairs was inaugurated. not
only in San Francisco. but in the entire