Bank of San Francisco (San Francisco, CA)

Episode Information

Episode UID
426252190908
Episode Type
Run → Suspension → Reopening
Bank Type
state
Bank ID
42625219 hash
Start Date
August 27, 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
ac27590555980906

Response Measures

None

Description

The Bank of San Francisco experienced a run following the failure of the Bank of California and suspended briefly before resuming operations.

Events (3)
1. August 27, 1875 Run
Cause
Local Banks
Cause Details
Panic triggered by the failure of the Bank of California.
Newspaper Excerpt
Bank of London & San Francisco, and Bank of San Francisco are having slight runs.
Source
newspapers
2. August 27, 1875 Suspension
Cause
Local Banks
Cause Details
Suspended due to the panic and runs following the failure of the Bank of California.
Newspaper Excerpt
The National Gold Bank and the Merchants Exchange Bank of San Francisco suspended on the day following the failure of the Bank of California.
Source
newspapers
3. September 1, 1875 Reopening
Newspaper Excerpt
The Merchants Exchange bank of San Francisco has resumed payments, and the panic was, on the 1st inst., declared over. ... Two days later the Bank of San Francisco opened with increased capital of $5,000,000.
Source
newspapers

Newspaper Articles (5)
1. August 27, 1875 The Silver State Unionville, Winnemucca, NV
Article from The Silver State, August 27, 1875

Click image to open full size in new tab

Article Text

WESTERN DISPATCHES [SPECIAL TO THE SILVER STATE.] THE VERY LATEST. SAN FRANCISCO, August 27 10 A. M. We are experiencing a real sharp but probably short-lived financial panic. There is less excitement this morning among the crowds on California and Montgomery streets, owing to the fact that banking and stock business is at a stand still. The Stock Exchange remains closed to prevent further depression in values of stocks, and the officers of the National Gold Bank and Trust Company gives formal notice that their business will be discontinudd temporarily owing to the panic and a scarcity of coin, offering at the same time assets to all of their depositors who desire them. The Savings Banks are open but reserve to themselves the by-law privilege. The depositors are being paid over the counter at the Hiberma-the largest of them. Some of the banks determined to remain closed to-Gay. Among those now with doors shut is Merchant's Exchange, Bank of London & San Francisco, and Bank of San Francisco are having slight runs. The Savings Banks are paying out deposits of less than one hundred dollars. Following observations are gleaned from a mass of floating rumors in print and otherwise, and will be found near the facts: The Bank of California has during two years past been in collision with one or more of the stock combinations, and prejudicial reports relative to its condition have been circulated from time to time, which, however, have been generally discredited as outgivings of speculators and desperate politicians. It is admitted on the other hand that the bank has been advancing sums of money on mining and manufacturing enterprises a little aside from legitimate banking. There has been a steady draia of coin to the East and Europe for some months, to which has recently been added an unusually heavy demand for payments on the wheat and wool crops. This of itself could have been gotten along with but for the manipulations of the stock brokers, who in their frantic efforts to depress prices began to hoard money. The Bank of California paid two millions at 2:20 yesterday. Some large checks were presented, one of them said to be for $300,000. On representations being made that it was impossible to count out so large a sum that night, payment was insisted on, and after hasty deliberation it was concluded to stop business. Flood & O'Brien, the great holders and manipulators of the Consolidated Virginia, Ophir, California, and all the Comstock mines with whom the bank has heretofore been in collision, deny that the run on the bank was in any way promoted by them and the latter emphasised his denials by stating that he had forborne to draw $200,000 of deposits in order not to cripple the bank.

2. August 28, 1875 The Morning Herald Wilmington, DE
Article from The Morning Herald, August 28, 1875

Click image to open full size in new tab

Article Text

Californian's Bank Excitement. SAN FRANCISCO Aug. 27.-The Depositors in the Bank of California, are amply assured. All the directors are men of wealth. The suspension of payment was only for the lack of coin. There is plenty of Bullion in the Bank. There was a run on some of the Banks to-day. A sharp, but probably a short financial panic is being experienced: There is less excitement to-day among the crowds on California and Montgomery streets, owing to the fact that the banking and stock business is at a stand still. The Exchange remains closed to any further depreciating in value of stock. The officers of the gold, note and Trust Company, and National Bank, give formal notice that their business will be discontinued temporally; owing to the panic, and at the same time asserts to those of their creditors who desire. The Savings Banks are claiming three days notice on large deposits, but are paying small sums over the counter. The largest of the Savings Banks is paying small sums. Among the Banks who have suited creditors is the Merchants Exchange Bank. The London and the Bank of San Francisco, are paying light runs, and the Savings Banks are paying deposits.

3. August 28, 1875 The Cincinnati Daily Star Cincinnati, OH
Article from The Cincinnati Daily Star, August 28, 1875

Click image to open full size in new tab

Article Text

The Financial Excitement. SAN FRANCISCO, August 28.-Wm. C. Ralston, President of the Bank of California, was drowned last evening in the bay-whether accidentally or otherwise is not known, but it is generally admitted that he committed suicide. The depositors in the Bank of California are amply secured. All the directors are men of wealth. A sharp but probably short-lived financial panic is being experienced here. There is less excitement to-day among crowds on California and Montgomery streets, owing to the fact that the banking and stock business is on aa standstill. The Stock. Exchange remains closed to prevent further depreciating in the values of stock. The officers of the Gold, Note and Trust Company National Bank give formal notice that the business will be discontinued temporarily, owing to the panic and a scarcity of coin, offering at the same time assets to their depositors who desire them. The Savings Banks are claiming thirty days' notice on large deposits, but are paying small sums over the counter. The Hibernia, the largest of the Savings banks, is sparing small sums. The London and the bank of San Francisco are having slight runs.

4. September 8, 1875 The Grange Advance Red Wing, MN
Article from The Grange Advance, September 8, 1875

Click image to open full size in new tab

Article Text

Miscellaneous. The Government has appealed from the decision of the Court of Claims awarding the son of the late Stephen Douglas for cotton destroyed in the late war. The National Gold Bank and the Merchants Exchange. Bank of San Francisco suspended on the day following the failure of the Bank of Calitornia. The liabilities of the Bank of California are about $19,000,000 and the assets not far from $7,000,000. Before committing suicide Mr. Ralston transferred all his property to Senator Sharon, of Colorado, for the benefit of his creditors. Edwin B. Smith is the New England lawyer to be appointed First Assistant AttorneX General of the United States. His commission was sent to Long Branch Friday for the signature of the President. The Commissioner of Internal Revenue has awarded the contract for printing check stamps to the Graphic Company of New York. The Atlantic Mills, of Lawrence, have resumed operations, after being idle for seven weeks. The stock on hand has been sold to good advantage and there is a chance now for steady work for a thousand hands. It is reported that some heavy stock brokers and others who have borrowed large sums, in one case amounting to half a million dollars, for the benefit of the Bank of California, securing their own bills payable with stock of the bank, are likely to become heavily involved. Stock of the Bank of California could not be given away at present. About fifty suicides are reported for the first week in August, caused by insanity, domestic trouble and financial embarrassment. A prominent banker of San Francisco reports that the immediate cause of the demand by the directors of the Bank of California for Ralston's resignation was a discovery by the directors during their investigation of a lot of bills receivable from irresponsible individuals, aggregating in the neighborhood of $1,000,000, with no collaterals. He also said it was the intention of the directors to have subsequently called Ralston into their counsel to avail themselves of his intimate knowledge of the business of the bank. At a soldier's re-union in Cadwell, Ohio, Senator Cockerill, of Missouri, an ex-Coniederate general, declared that it was passion and notipatriotism which prompted him to take up arms against the government. The Merchants Exchange bank of San Francisco has resumed payments, and the 1 anic was. on the 1st inst., declared over. Geo. A. Smith, Brigham Young's next best man among the Mormon's, died on the 1st. There is a total of one hundred and forty millions of dollars in the United States Treasury. The public aebt was reduced $1,585,049 in the month of A. gust. The California election resulted in the election of the Democratic ticket by a large majority, together with at least three Congressmen. The Independents, heretofore affiliating with the Republicans voted with the Domocrats. Assurance is given that the Bank of California will resume payments, and the effect on business prospects is improving. Hon. M. J. Fletcher, commissioner of pensions, has resigned. Goldsmith Maid trotted a mile in 2:14 1/2 at Hartford, Conn., on the 3d. The colored leader of the reported Georgia insurrection has been found not guilty.

5. August 16, 1879 Weekly Trinity Journal Weaverville, CA
Article from Weekly Trinity Journal, August 16, 1879

Click image to open full size in new tab

Article Text

O California Hesaid: Banking in like that like that of the is history, ifornia. presumably everywhere. State, is brief Its and recent, dating from 1849. The argonauts' most sanguine expectations were more than realized. and the gold product: was so unprecedented. that economists in like Chevalier in France and Cobden England. predicted that it would be unfitted for use as money. THE FIRST BANK Was established January 9, 1849, by NH. glee & Sexton. Private banks and ex change offices increased until the winter of 1854.5, when an almost general collupse occurred. The immediate cause of this crash was the failure of the great St. house of Page, Bacon & Co., of Louis, whose San Francisco branch occupied H prominent position. One of the few houses which weathered the storm was that of Lucas, Turner & Co., managed by General Sherman. The banking business of California up to this time exlisted in an atmosphere anything but con- of dueive to the soundness and stability credit was unorganized : the population was excitable and unsettled, and by reaof the distance from the base of sup plies son the market fluctuated from a "glut" folto perfect barrenness. During the lowing decade banking was systematized Sevand freed from its many crudilies. into eral private firms were converted corporate establishments, and a consider- inable amount of foreign capital was vested in banking in the city. One of the of most notable events was the foundation THE BANK OF CALIFORNIA, Which was incorporated June 15. 1864. O. and began business July 1st with D. Mills as President and W. C. Ralston 88 Cashier. Its capital. which at first was to $2,000,000. was increased July 1. 1866 $5,000,000. Though California escaped of 1873, which proved so disasin the East, it had. two years trous the panic which testified later, disturbance of its own Durthe a stability of its financial fabric. the summer of 1875 the high merchants price of ing gold in the East induced many and buy largely for prospective trade, the to shipments of gold were $22,000,000, against 000,000 during the same addition. peas riod of the preceding year. In severni price of wheat absorbed and doubtless, as was millions, the high locked currently up reported, considerable coin was hosfor speculative purposes by a clique tile to the Bank of California. Money about and it was who was of that WH- close, Ralston, whispered practically millions the bank, had locked up several and funds in unproductive real estate also manufacturing its enterprises. It was that H great contest had the Ralston party ed known between control and been of Flood wag the his associates for the leading and Comstock mir es. and the triumph rival the Flood crowd created a powerful of the Bank of California. THE CRISIS AND DISASTER. Mr. Gibson then described the appronching crisis and subsequent disaster, the devoted considerable time to and incidents during in the scenes and Friday" memorable California's follow- AugBlack of 1875. He continued : The ust was collection OF "steamer to when all mercantile for the preceding day," ing be adjusted Monday balances the fortnight. Pacific are This custom originated before was built, when the steamer by Railroad monthly, and is objectionable strin of its producing a The day came and went sailed gency. reason periodic and mutu- confitorbearance was exercised. associaal dence was New restored. York banks In 1873 and the of those in of tion of Eastern cities. and the probably use many Clearing-ho certificates, Frana general suspicion in San Clearinverted There was. at that time, no and cisco. no union of resources, On stood on its own of October the Bank of No. each ing-house, 2d bank merits. California the the re-opened. Two days iater with was Bank of San Francisco opaned increased vada capital of $5,000,000, H 4, 1876, to glance at cast October cash retroxpective $10,000,000. the the effects, sound As we a abundant evidence of meet of the banking and financial system ness State. There was no general no tumble in prices. no erash. With the of panic, mercial the and exception which com- of it temporary backset, from business this recovered, the banking pace has more than of material speedily with California its splendid developments. kept projected men of California have Failways, Great built a great system of Misand up valleys richer than the to Call opening and rendering tributary and sissippi, fornia the mineral wealth of Arizona Nevada. It is to THE MINING INDUSTRY, However, that California and is primarily wealth. No inindustry can debted for its population show such