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THE BANKS OF SACRAMENTO. Commissioner Knight Declares They Are All Sound. He Also Pays a Very High Compliment to the Careful Methods of Their Managers. State Bank Commissioner W. H. Knight, who has been in the city examining the banks, was seen last night by a RECORD-UNION reporter. He examined the California State Bank on Monday, the Sacramento Bank on Tuesday, the People's Bank yesterday forenoon, and the Farmers' and Mechanics' Bank in the afternoon. He reports most favorably on the local banks, and declares that they will show to the best advantage in comparison with any in the State for soundness and careful management. The savings banks, he said, loan their money very carefully, taking only good loans, and his examination showed interest in almost cases promptly. as a to persons out of debt and who up get that made, kept the paid rule, up The kept who all loans want their was are to payments. In the few cases which were behind in their payments he found the loans were not SO good. Another good feature is, he said, that they have had to take very little real estate by foreclosing on it. "Another thing that surprised me," said he, "was that I found Sacramento County in such good condition financially. I had received the impression that Sacramento was suffering from financial depression and that business was poor, but when I came here I found a different state of affairs entirely. *There are no foreclosures in the county, the banks are doing a safe, conservative business and are excellently managed. The officers know personally all about their business and keepin touch with their customers, SO as to know how they are getting along. "Of course there is some falling off in deposits, but that is the case all over the State, and Sacramento is not exceptional in that respect. No, I do not think it is specially due to withdrawals or use of money to attend the World's Fair, but is more directly traceable to the general stagnation in business. When business is in this condition nothing is ever started. When business is active, there is always plenty of money floating about, waiting for investment or being put into the banks. "Six or eight months ago people were seeking opportunities to put out money on good loans. Why should there be a loss of confidence now Take the case of the Colorado banks. I don't see any cause for a panic or for any great disturbance. The Los Angeles banks have all opened again. They all possessed ample assets at the time of the run which closed their doors. They had two to three dollars to one of liabilities and were perfectly sound. It was the want of conridence that closed their doors temporarily. Banks must loan their money or stop doing business. As I said before, your bankers keep in touch with the borrowers. They give their personal attention to details of loans and values of property. I examined their loans and inquired into their system, and can say that for soundness, careful management and solvency no banks can stand better." Mr. Knight's words speak for themselves to those who are crying "hard times" and "no business," and show the injurious impression of our financial situation that goes abroad through such statements. His opinion of our banks ought to be most gratifying, not only to the officers themselves, but also to our business men who deal with them, and the citizens themselves should appreciate the compliment he indirectly paysther for not promoting a senseless scare as some other places have done, to the great injury of the banks and of themselves.
