Article Text
THE SAN DIEGO PANIC. RESULTS OF THURSDAY'S NATIONAL BANK FAILURE. Other Banks Staving Off Runs-More Coin Forwarded from Los Angeler to Tide Them Over-The Cheyenne, Wyo., National Bank Forced to Suspend. News was received yesterday by the clearing house in this city that there was no great excitement at San Diego about the failure of the California national bank of that city, and that the other banks in that city were solid, and that there were no indications of any runs on any of the institutions. This official statement does not exactly tally with some facts in the matter. As stated in yesterday's HERALD, $130,000 in coin was shipped to San Diego on Thursday by special train to help the other banks stand a run. Yesterday the wires were kept hot by messages from the banks there asking for more money. The Los Angeles banks have plenty of coin-too much, most people think - but they were not disposed to let go of any more without ample security, which was furnished and telegraphically accepted. Drafts on San Francisco and Kansas City and a large amount of coin was forwarded last evening. How much could not be learned, but it is thought that at least $150,000 was sent. LOCAL NOTES ABOUT THE FAILURE. A banker in talking over the matter of the failure yesterday to a HERALD reporter said: "A complicating feature of the failure is the fact that the same financial kite fliers who run the busted bank formed a loan and trust company some time ago, and liberally loaned money on property, all in San Diego. I should judge that a very large percentage, possibly a quarter of all the mortgages on property in that city, are held by the loan and trust company, which is really the bank. You can see that the result may be serious to many people down there besides the aepositors. "The men at the head of the bank were wild cat sort of operators at the best. They were not given any credit up here, and the suspension was expected by conservative bankers. On the whole the result will be good. The other banks down there are as solid as can be, and as for the Los Angeles concerns they are as a whole as solid as the Bank of England." Mr. John Brennan, the proprietor of the-Hoffman house of this city, returned from San Diego last evening. Hestated to a HERALD reporter that the California Savings bank which was an adjunct of the suspended California national bank has also suspended, and was yesterday in the hands of the state bank examiner. This savings institution is officered by the same men who are at the head of the national bank, and is in fact the same institution. BANKS NOW IN GOOD SHAPE. Mr. H. W. Hellman, one of the com-
