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SOUND AS A BELL. Bank Commissioner Dunsmoor on the Financial Situation. Bank Commissioner Charles H. Dunsmoor returned from the south yesterday after having spent several weeks in the examination of banks in that part of the State. He reports that notwithstanding the suspension on Saturday at San Bernardino of the Farmers' Exchange Bank and its adjunct. the Savings Bank of San Bernardino, the attitude of the people in Southern California is one of confidence in their banks. The money market there shares the prevailing stringency, but for all that, the knowledge that the management of the banks, with very few exceptions, has been 80 conservative right along, together with the splendid character of the assets, inspires depositors with a serene faith in their stability. Mr. Dunsmoor adds that the crop prospects in the south never looked so bright. Last year the orange crop was below the average; this year the orchards are fairly teeming with the golden fruit. The wheat also looks well, and the farmers' only regret is the prevalent low quotations for that great staple. In regard to the failure of the Farmers' Exchange Bank, Mr. Dunsmoor attributes it to a senseless panic. Its stockholders are all solid men financially. The condition of the institution, as developed by the last examination, was found to be thoroughly sound, and had the managers foreseen the crisis which was so suddenly forced upon them the disaster of Saturday might easily have been averted. He believes they will find no difficulty in resuming. Bank Commissioner W. H. Knight is also now in the city. Both he and Commissioner Dunsmoor are preparing to receive and tabulate the semi-annual statements which will begin coming in on July 1. The managers have thirty days within which, under the law, to file their statements. Both commissioners are of the opinion that the showing this year for the California banks will be fully as good as last year's. If the bank managers will only maintain a prudent course and abstain from crowding their patrons too severely during the present period of business stagnation all will be well, A bank official remarked to a CALL reporter yesterday that the people of San Francisco had little to fear from the present monetary flurry in the East, He likened the tension to the stretching of a rubber band, which, the wider it was pulled between two fingers, the thinner and weaker It becomes. The monetary rubber band extended from London to San Francisco. The first strain was felt in London. Soon it extended to New York. Then the its which great West added pull, seemed to give it the maximum tension. If San Francisco bankers were foolish enough to contribute to the pull the still of endurance might be reached, and the whole band would snap to pieces. This, however, he did not fear, as the situation here was very different from what it was where booms and speculation had occasionally run riot within the last decade.
