Year: 1875




A special dispatch from San Fran
cisco states that the Bank of Cailfor-
MIA closed its doors on Thursday, the
26th. The suspension caused the
widest excitement, and financial
manic at once ensued. The Bank OF
California has long been the leading
financial institution Oh the Pacific
coast, and its working capital, if we
are correctly informed, was slO,O0O,-
600. This most likely was It's paper
capital, but what portion OF the
amount had really been paid in is an
other matter. In the list Of stock
holders was the names Of such men as
Alyinza Hayward, |. Friedlander,
John p. Jones, VIM. Sharon, and
others who have ranked as the richest
men on the Pacific coast. VIM. Z.
Ralston, a gentleman who has been
regarded as a very able tinancier, has
been at the head of the Bank. and IN
der his management the institution
was supposed to have made millions
of dollars. From time to time the
Bank has declared large dividends,
and in every way gave evidence OF
substantial prosperity.


A few months since report was
current that VIM. G. Ralston, the
cashier, was embarrassed, and this re-
port for the time being injured the
credit of the Bank, but this difficulty
was ,ided over. and the public again
placed implicit reliance in its sound
ness. We are not apprised as TO the
causes that Immediately led to the
suspension, but from the information
at hand We presume that the embar-
rassment was brought about by spec
uiating in mining stocks. At all times
the Bank has largely operated in the
Nevada mines, and it has been a COM
mon saying that the Bank of Califor-
MIA owned the Washoe country.


Last winter, under the pressure of
an outrageous system of putting, Ne
vada mining stocks were run up to
fabulous figures, but the bubble col
lapsed early in the month Of January,
and from that date to this mining
stocks of all descriptions have been on
the down grade. 1t has been this steady
depreciation in the value of mining
stocks that most likely has taken the
Bank of California through, and
wrecked the fortunes of men who
deemed themselves milliOnaires.


What effect this failure will have
on the business interests OF the coast
it is too soon yet to determine with
any degree of certainty. That it will
be disastrous, is the conclusion that
must force itself upon the mind of
every man who understands low
thoroughly the Bank was identified
with all the great business interests of
the country. Aside from the actual
loss that must fall upon depositors and
correspondents, the suspension will
have the effect for the time being of
destroying all confidence in business
circles, and in that way it must prove
disastrous.


In our immediate community we
have not as yet heard of any person
having accounts with the Bank, and
IN that respect our people seem TO be
fortunate. In failures of this kind,
however, the indirect losses are far
reaching, and when we get full devel-
opmenls it will most likely be found
that our people suffer more or less
from the failure of the great Bank.
This suspension following almost i'm.
mediately upon the failure of Duncan,
Sherman e Co., seems to indicate
that the financial crisis that has so
long weighed upon the Eastern States
has at length reached the Pacific slope
and burst upon the heads of our peo
pie with the fury of a tornado.


At such time it is the duty of the
Journalist to inculcste a spirit of calm
ness, and as far as possible labor to
keep down anything like a panic. In
the meantime it becomes business men
and all others to look closely to their
surroundings, and so hedge themselves
about as to be prepared for possible
crash. just now prudence will sug-
geSt TO every man the propricty Of
keeping his means within his own con-
troll, and then if the storm comes he
may reasonably hope to ride it out in
safety.


The Oregonian refuses 10 support
Whitney, the Independent candidate
for Congress. 1t declines to take
up the cudgel for man who has al
ready proven not the most eligible
candidate in the field" In the Ore