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FINANCIAL CRISIS IN SAN FRANCISCO. Suspension of the Bank of California --Heavy Run on other Banks.--Gloomy Prospects.
First National Gold Bank (San Francisco, CA)
Episode Information
- Episode UID
174100908- Episode Type
- Run Only
- Bank Type
- national
- Bank ID
-
17410national - Charter Number
- 1741
- Start Date
- August 26, 1875
- Location
- San Francisco, California (37.780, -122.419)
Metadata
- Model
- gemini-3-flash-preview (chosen from majority vote of a three-model LLM ensemble)
- Short Digest
35088399b9fbc68e
Response Measures
Accommodated withdrawals
Description
The bank experienced a run during the Panic of 1875 but remained open and reported being 'O.K.' while other institutions suspended.
Events (3)
1.
November 30, 1870
Chartered
- Source
- historical_nic
2.
August 26, 1875
Run
- Cause
- Local Banks
- Cause Details
- The failure of the Bank of California triggered a general run on other San Francisco banks.
- Measures
- The bank reported having abundance of available assets and remained open.
- Newspaper Excerpt
- A run on the other banks is now going on, and it is impossible to even guess at the result.
- Source
- newspapers
3.
August 27, 1875
Other
- Newspaper Excerpt
- The First National Gold Bank reports everything O.K. The same may be said of the Bank of British Columbia, and the Pacific and Commercial Bank. Private banks report no excitement and everything going on as usual. Generally all city banks are considered sound except the Bank of California.
- Source
- newspapers
Newspaper Articles (8)
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LOCAL INTELLICENCE. FAILURE IN SAN FRANCISCO. Bank of California Bursted. SAN FRANCISCO, Ang. 26th, 4 P.M. The Bank of California closed its doors a few moments ago. Their agencies at Virginia and Gold Hill were notified to close with haste. At four o'clock this afternoon on account of the failure of the bank the Stock Board have adjourned until called together by the Executive Committee. California street is the scene of the most intense excitement. It is jammed with a solid living mass. The exact loss is not known, but estimated at millions. A run on the other banks is now going on, and it is impossible to even guess at the result. Stock market entirely collapsed; there is no demand whatever. All orders due in Stock Board to-day will be due day after the board meets. California street is in an uproar of excitement. Stocks are collapsing and five thousand frantic med and women are jammed together around the doors of the bank, with consternation and despair depicted on their countenances. The report that the bank had closed its doors flew like wild-fire, and a run was commenced on the other banks. California street between Montgomery and Sansome is a surging mass of excited and frantic humanity. The immediate cause of the run was the inability or at least the refusal of the bank to pay a check for $400,000, the gentleman presenting it having credit at the bank for that amount. Shortly after the refusal a run commenced and the doors were closed. Pacific Coast branches of the bank were telegraphed to close their doors immediately. It is impossible to even guess at the damage done. The Board of Brokers have decided to suspend business until the extent of the catastrop 18 is known. The intense excitement existing prevents any very reliable details as yet.
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MORNING DISPATCHES M. Daring Attempt at Train Robbery. Violent Hail Storm in Wyoming. [SPECIAL TO THE HERALD.] PACIFIC COAST. The Banks. SAN FRANCISCO, August 27th.-The run upon the banks was practically over before twelve o'clock. The Merchant's Exchange Bank did not open, posting the reason on the door. The Trust Company did not open, of course, having closed till Monday. The London and San Francisco Bank and the Anglo-California Bank both received to-day telegraphic drafts on the SubTreasury in these sums: Five hundred thousand dollars to the former bank and one hundred and fifty thousand dollars to the latter, which formed a strong reserve, and the intellegence of the transfer served to lift the public confidence very materially. This feeling was strengthened by the fact that no commercial failures were reported, and so far as known no seri-
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UNDAVASIA NOONHILAY THE CALIFORNIA PANIC. Excitement Subsiding-Confidence turning-Worst Over No Commercial Failures Reported, a Dozen Heavy Brokers and Man ufacturies Shakey. President Rolston, of the Bank Callfornia, Commits Suicide. 841-88 protory NVS citement in consequence of the failu of the Bank of California seems to subsiding. The crowd on the bank much less than at the opening of "shoq SSOU The run on the London and Francisco Bank closed with a large plus in the vault. A slight run on the Anglo Californ this morning soon subsided The First National Gold Bank ourus on pur be said of the Bank of Brit/sh Columb and the Pacific and Commerciaj ban! Private banks report no exciteme Tensuse 110 Sujor PHB erally speaking all the city banks considered sound, except the Batrk California. President Ralston has nothing in addition to his statement yesterday. Many rumors are current regardi the condition of the Californ mo.y suomers ano authority, is that the bank will depositors in full and stockholders ty cents on the dollar. Another that the stockholders state that most the bank can do is to satisfy positors. There has been a slight run on Hibernian Savings Bank, but the mand was promptly met. Confidence seems to be returni ΠΌΠ΅Π»ΠΎ s! WORDS the believed st 11 pur Little uneasiness is felt, as the aftai of either the National Gold Bank Trust or Merchants' Exchange The former reports the probability an early resumption, though unable fix the time. The National Gold Bank has abundance of available assets. which
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EFFECT OF THE SUSPENSIONS. Assistance Rendered by the Government. SUICIDE OF PRESIDENT RALSTON. SAN FRANCISCO, August 27.-The excitement seems to be subsiding. The crowd on California street is much less than the opening of business this morning. The run on the London and San Francisco banks has ceased, with a large surplus remaining on hand. A slight run was made on the Anglo-California at the opening, but soon subsided. The First National Gold Bank reports everything O.K. The same may be said of the Bank of British Columbia, and the Pacific and Commercial Bank. Private banks report no excitement and everything going on as usual. Generally all city banks are considered sound except the Bank of California. Mr. Ralston this morning says nothing in addition to the statements of yesterday. Many rumors are current as to the condition of the California Bank. One statement, apparently from good authority, is, that the bank will pay depositors in full, and stockholders fifty cents. On the other hand, a prominent stockholder says that the utmost the bank can do will be to satisfy the demands of depositors, and scarcely that There has been little rush at the Hibernian Savings Bank, but the demands were promptly met within the by-laws. Generally speaking, confidence seems returning. But little uneasiness is felt as to the affairs of either the National Gold Bank Trust Company or Merchants' Exchange Bank. The former reports the probability of soon resuming, though unable to fix the time. Abundance of available assets is only awaiting the reception of coin. The president this morning states they paid out about one million dollars yesterday, with a small supply left. The Merchants' Exchange is believed to be sound. The suspension is only temporary. OTHER FAILURES. The National Gold Bank Trust Company and the Merchants' Exchange Bank have suspended. The directors of the latter have prepared the following notice for the afternoon papers: In consequence of the excitement, and the disappointment in getting coin, the Directors deem it for the best interests, and the interests of all, uot to open our doors at present. The secretary states that the bank has $100 in coin on hand. The amount liable on deposits is $800,000, but against that may be over $400,000 in notes. The bank is perfectly solvent, the only trouble being a lack of coin. There is a run in the London and San Francisco Bank, but Manager Latham asserts his ability to meet all demands without trouble. Crowds surround the Bank of California and the suspended National Gold Bank and Trust Company also the Savings Banks, but the action of the officers of the latter institutions last night effectually prevents a run on them. The excitement is great. STATEMENT OF NATIONAL GOLD BANK. The National Gold Bank and Trust Company have sent in the following notice for publication in the morning papers In consequence of the panic, and the impossibility of getting gold, the National Bank and Trust Company will close until further notice. The bank has $1,300,000 above all its liabilities, and as soon as coin can be obtained, will resume business as usual. In the meantime, any creditor desiring can have good assets of the bank to the amount of his claim. By order of the Board of Trustees." [Signed,] HENRY L. Davis, Pres't. City Tax Collector Austin has two hundred and seventy-five thousand dollars of protested tax monies on deposit in the Bank of California for which he has certificates of special deposits. The directors assured the collector this morning that the money would be paid in a day or two. A rumor which is not yet confirmed says that Ralston has turned over his private means to the bank. SUICIDE OF PRESIDENT RALSTON. About ten minutes past five o'clock, a close carriage drove rapidly to the side door of the Bank of California. A gentleman jumped out in a state of excitement, ran into the bank, and in response to inquiries said he had just left the body of Ralston in charge of an officer on the beach, near the smelting works, in the northern part of the city. Ralston had gone to the Sellig's smelting works wharf and committed suicide by jumping off the dock. FURTHER PARTICULARS OF THE SUICIDE. There is great excitement in the city over the death of Ralston, which overshadows every otber topic. From the best information, it appears he went to the sea-bathing establishment at North Beach, about 3:25 p.m., undressed, went into the water, swam about two hundred yards, disappeared behind a vessel, and
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1crowd on California street was much less than at the opening of business this morning. The run on the London and San Francisco bank ceased with a large surplus remaining in the vaults. Slight run on the Anglo California at the opening, but it soon subsided. The First National Gold Bank reports every thing quiet; the same may be said of the Bank of British Columbia and Pacific and Commercial Banks. Private banks all report no excitement and every thing is going on as usual. Generally all city banks considered sound, except the Bank of California. Ralston this morning says nothing in addition to his statements of yesterday. Many reasons are current as to the condition of Bank of California. One statement appeared from good authority, that the bank will pay depositors in full and sixty cents to stockholders; on the other hand, prominent stockholders state the most the bank can do, will be to satisfy depositors and scarcely that. There has been a little run on the Hibernian Savings Bank, but the demands were promptly met there by loans. Generally speaking, confidence seems to be returning and the panic is believed to be almost over. But little uneasiness is felt as to the affairs with the National Gold Bank and Trust Company, or Merchants Exchange Bank: the former reports a probability of some running, but it has abundance of available assets. The president this a. m. stated they paid out a million yesterday, with a small supply left. The Merchants Exchange is believed to be sound, and its suspension is only temporary. LATER.--Great excitement has been caused by the rumor on the street that W. C. Ralston, president Bank California, committed suicide by drowning himself in the bay. LATER, 6 p. m.-Without doubt the rumor that W. C. Ralston drowned himself in the bay opposite Selby's smelting works is correct. Selby's son brings the news and says he helped to take the body out of the water. There is a most profound sensation throughout the city. STILL LATER, 6:30 p. m.-Ralston's body is at Col. Fry's house. The people are almost wild with excitement. Gen. Coey of the National Guard is prepared to quiet any disturbance that may arise. LATER STILL, 8 p. T-The facts concerning the suicide of the great banker as far as can be ascertained, are these: Ralston went over to North Beach and went in bathing in the bay was seen throw away a paper after going to the water. Boatmen afterwards saw him floating and took him out. They worked upon the body and tried to restore life, but it was no use, he was dead. The story is that he took poison and deliberately went into the water and drowned himself. A few are inclined to believe that it is a case of accidental death. The coroner will hold an inquest to-morrow. It is impossible to convey an idea of the effect this intelligence has upon the peoplenothing like it has been witnessed for years. The National Bank and Trust Company, this morning, announced a temporary suspension on account of scareity of coin, but will give good securities to any depositor who wishes them. At 1:30 p. m. depositors commenced a lively run on the Anglo-California Bank, the London and San Francisco Bank, the Merchants Exchange Bank and the First National Bank. Savings banks require the legal notice before paying anything. LATER.-The Merchants Exchange Bank has closed. The Chamber of Commerce held a meeting this with a large attendance. It was decided that it would probably be more injurious than beneficial to take any ac. tion looking towards the postponement of ordinary settlement of accounts and notes maturing next collection dayMonday. The course of the different banks has caused good feeling. Several closed
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for the opening gun of artillery salute at the base of Telegraph Hill, on Sansome street, while three cheers from the crowd welcomed the voice of the opening cannon, and before the echoes had died away the window screens of the bank lowered and the ponderous iron doors swung open. The nimble clerk who turned the crank to swing open the doors had only time to jump inside before the full force of the rush came. A little pale-faced man, with a check in his hand, was the first to reach the paying teller's desk, but he hesitated with so much confusion, and seemed so deeply agitated that others gained the advantage of him. Then the jingle of coin began, and while some were demanding others were tendering. The stream of coin pouring out from the California street front was sustained by an incoming stream of equal volume from the Sansome street side. The friends of the bank, and they are legion,came forward to attest their friendship by liberal reinforcements of hard cash. In the great mass of people that crowded into the bank and clambered up to the windows outside, nineteen out of twenty were idle spectators who had come to gratify a natural curiosity. From 10 A. M. until 2 P. M. California street was thronged with citizens who recited to one another all the rumors of the hour, and discussed at length the probable demand on the bank. All were inclined to concede to San Francisco financiers the glory of an achievement that had never been surpassed in the financial history of America. The flags floating from the buildings on Montgomery and California streets gave an air of holiday festivity to the occasion. If any apprehension of disaster was felt it was not expressed, either in the words or actions of the multitude. The brokers were particularly joyous, predicting that the stock market would open with gratifying buoyancy Tuesday morning. It is only a surprise that some over-enthusiastic speculator did not mount a stationary vehicle and offer to buy all the available shares in the crowd. It was expected that the bank would close at 12 M., the usual hour on Saturday for terminating banking business, but to accommodate visitors the tellers continued to pay out and take in coin until 1 o'clock P. M. The bank officers do not state thesum paid out, but they report officially that the sum received was $750,000 in excess of the amount disbursed. To-night Senator Sharon, President of the Bank Syndicate, will receive the compliment of a serenade at his residence on Sutter street. The brokers have organized a syndicate to pay for the music, and the subscriptions were coming in to-day ata promising rate. To-day the managers of the Nevada bank of San Francisco were actively engaged in preparations to open for business on Monday at 10 o'clock A. M. A supply of coin apparently large enough to resist the pressure of the fiercest run ever made on a banking institution was piled up in the cash receptacles behind the counters. The President and subordinate officers were at theft respective stations of duty during the day, while a corps of busy clerks and book-keepers were applying themselves diligently to the task of getting ready the deposit accounts. An officer was stationed at the door to prevent the entrance of idle spectators. The First National Gold Bank, which has secured a stronghold in the Nevada block, has the work of its interior arrangement about completed, and will receive customers in their new and elegant quarters on Monday morning.
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further contention. Section 2, Article V, does not mean that the Governor shall hold office beginning on a day four years from and after the first Monday after the first day of January subsequent to his election, but for four years beginning with that first Monday. ENFORCED IN SPIRIT-J. B. F., San Luis Obispo. (1) Article XIX of the Constitution of California, which is leveled particularly at the Chinese, in guaranteeing protection against dangerous aliens, forbidding corporations from employin Chinese, forbidding their employment on public works and discouraging immigration of Chinese, has been attempted to be enforced in its spirit, if not In the strict letter. (2) The section forbidding the empl yment of Chinese by corporations was declared unconstitutional by the United States Circuit Court on various grounds in 1880. Section 4 will be tested shortly in the United States Circuit Court in anaction for damages againstan x-Supervisor, who had caused the arrest of Chinese for failure to comply with an ordinance of which he was the author, prescribing their removal to certain limits for residence within the City and County of San Francisco, said ordinance having been declared unconstitutional also. Yet in the smaller towns in this State the Chinese have been corraled and located within prescribed limits. SUGAR REFINERIES-L. S., City. The first sugar refinery in this city was the San Francisco Sugar Refinery. incorporated in 1855 and in 1862 merged with a new refinery under the name of the San Francisco and Pacific Sugar Refinery. Its buildings were located on the corner of Eighth and Harrison streets, and they "together comprise the largest buildings in the State with the exception of the United States forts," as WAS said of them in 1864 and 1865. About this time also the Bay Sugar Refinery (now the American Sugar Refinery) erected its works on the corner of Battery and Union streets. The California Sugar Refinery was incorporated in 1867, and located its works at the corner of Eighth and Brannan streets. BANK OF CALIFORNIA-A. D. M., City. (1) It was on the 26th of August, 1875, that the Bank of California and the National Gold Bank and Trust Comp any suspended, followed by an indefinite adjournment of the Stock Boards and a run on all the banks, which latter ceased on the 28th. (2) On the 25th there was a great decline in the value of mining stocks, and by reason of the financial disorders the banks could not, for the time being, meet the demands upon them. W. C. Ralston resigned on the 27th the presidency of the Bank of California, making a transfer of all his property to William Sharon, and a few hours afterward was drowned at North Beach while bathing. LEGISLATIVE JOURNALS-J. B. F., San Luis Obispo, Cal. The journal of proceedings of the Legislature of this State is published in bo k form at the close of the session and such copies can be procured from the Secretary of State. As regards the daily journals, also printed by the State Printer, no one is deputed to mail or circulate them abroad, and there is probably no other way of procuring them, unless through some Senator or Assemblyman, or some other friend at court. The published book of laws, also printed at the close of the session, may be bought from the Secretary of State for each. But all these things are regulated by statute. FICTITIOUS FIRM NAMES.-A. D. L., Princeton, Cal. Every partnership transacting business in this State under a fictitious name, or a des gnation not showing the names of the persons interested as partners in such business (excepting a commercial or banking partnership established and transacting business in a place without the United States), every change in the members of such partnership, and every special partnership must by law be certificated, and also published or recorded. Until these conditions have been complied with the partners do not constitute a legal firm, and of course have no standing in law as a partnership firm. PESACH-T. S., Lovelock, Cal. "Pesach" is a Hebrew word from "pesah" and "pasah," meaning "to leap over, to pass by,' and has come to mean the passover, in commemoration of the Israelites remaining intact on the night of the destruction of the first born in Egypt, immediately preceding the exodus from that country. Thus in its meaning of the paschal lamb, the sacrifice offered at the feast of the Passover, the Bible says in Exodus Then Moses called for all the elders of Israel and said unto them, draw out and take you a lamb according to your families and kill the passover,' the sacrifice being indicative of the festival. THEIR NUMBER Is UNKNOWN-J. S., San Diego, Cal. It was never ascertained how many Indians were killed or even engaged in the massacre of Custer and his command. In fact, of the movements of General Custer and the five cavalry tro ps under him scarcely anything is known. Estimates have been made that he was attacked by from 2000 to 7000 fighting men, though official reports reduced the number to 2500 to 3000, and certain it is that boys and squaws were among the concealed comb tants. True also that General Miles received hostages for the surrender of about 2000 Indians only. SCHOOL LANDS J. B. F., San Luis Obispo, Cal. Under an act of Congress approved April 4, 1841, distributing the proceeds of the public lands among the several, States of the Union 500,000 acres of land were granted to the new States, California among the number, to be inviolably appropriated to the support of the common schools in each State. The choice of the sixteenth and thirty-sixth sections of the Congress-donated lands and their sale for township school purposes is also authorized by subsequent Congressional and legislative enactments. PROCTOR'S WIDOW-M. R. C., Vallejo, Cal. The Q. C. has not read the article in the Youth's Companion by Norman Lockyer, F. R. S., from which you quote that