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FINANCIAL CRISIS IN SAN FRANCISCO. Suspension of the Bank of California --Heavy Run on other Banks.--Gloomy Prospects.
Bank of California (San Francisco, CA)
Episode Information
- Episode UID
5884137590908- Episode Type
- Run → Suspension → Reopening
- Bank Type
- state
- Bank ID
-
588413759hash - Start Date
- August 26, 1875
- Location
- San Francisco, California (37.780, -122.419)
Metadata
- Model
- gpt-5-mini (chosen from majority vote of a three-model LLM ensemble)
- Short Digest
4cbc2f88edf9cc14
Response Measures
None
Events (3)
1.
August 26, 1875
Run
- Cause
- Bank Specific Adverse Info
- Cause Details
- Heavy withdrawals driven by losses from the bank's large speculative exposures (mining and stock gambling) tied to Ralston and associates.
- Measures
- Paid out large sums ($1,400,000) to depositors during the run.
- Newspaper Excerpt
- the run fairly set in...withdrew their coin...paying out $1,400,000.
- Source
- newspapers
2.
August 27, 1875
Suspension
- Cause
- Bank Specific Adverse Info
- Cause Details
- Suspension/closure following heavy withdrawals and insolvency concerns tied to speculative losses and the bank's exposure.
- Newspaper Excerpt
- The Bank of California at San Francisco, which failed yesterday evening at five o'clock...officers frankly say they never expect to resume
- Source
- newspapers
3.
October 1, 1875
Reopening
- Newspaper Excerpt
- The Bank of California opens for business at 11 o'clock a. m., tomorrow.
- Source
- newspapers
Newspaper Articles (23)
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THE PANIC IN SAN FRANCISCO-THE GOVERNMENT TRANSFERRING GOLD BY TELEGRAPH -In anticipation of a run on the banks in San Francisco, arising out of the failure of the Bank of California, bank officials there this morning made arrangements for the transfer of gold from New York to San Francisco by telegraph. The representatives of the California banks in New York make a adeposit with the Assistant Treasurer in thatcity, whereupon the Secretary ofthe Treasury orders the payment of an equal amount by the Assistant Treasurer in San Francisco. Over two million dollars have been thus transterred to-day. The general opinion among Treasury officials regarding the failure of the Bank of California, is that It is attributable to its carrying large interests in fancy mining and other stocks.
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THE Bank of California at San Francisco, which failed yesterday evening at five o'clock, was one of the largest banking institutions in the country, and for a long term of years enjoyed unexampled confidence and prosperity. The officers frankly say they never expect to resume, but hope to meet all their obligations. The cause of the failure is not assigned.
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Heavy Failures. The Bank of California, at San Francisco, failed yesterday, shortly before the close of business hours.after having paid out $1,400,000 during the day. Its president states that it will not resume business. It officers say that its assets will be sufficient to pay all its liabilities. Stirling, Ahrens & Co., Baltimore, said to be the largest sugar importing house in the United States suspended payments yesterday. Liabilities estimated at $2,500,000.
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The Financial e Fearful. NEW YORK, August 27.-A private dispatch from prominent gentlemen in San Francisco says that matters look better so far as the best interests of the city and State are concerned. The financial panic is fearful. and the losses by the failure of the Bank of California will be heavy
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The Bank of California, San Francisco, suspended payment Thursday.
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A Report. New York, August 27. A report is current here that the losses of Ralston and his clique in California, on mining stocks and other speculations, will reach $6,000,000. Private despatches from gentlemen in San Francisco, say that matters look better so far as the best interests of the city and State are concerned. The financial panic is tearful; the losses by the failure of the Bank of California will be heavy.
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RALSTON, President of the Bank of California, committed suicide after that institution suspended; or at least it was supposed that he did, as his body was found tloating under a wharf:
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THE Memphis Appeal says that the panic which prevails in San Francisco, caused by the failure of the Bank of California, is the result of speculation, induced by an insatiable desire to lead. Mr. Ralston, the ill-fated President, was a native of Tennessee, born and educated in Davidson county. The architect of
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The Bank of California, the leading banking house on the Pacific slope, doing business on an entirely gold basis, suspended payments last Thursday, after enduring a "run and paying out $1,400,000. Other banks at San Francisco and throughout the Pacific States were threatened with serious trouble in consequence.
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THE SUSPENDED BANK.- - Rumors are still rife concerning the resumption of the Bank of California. One account asserts positively that everything has been perfected and that the bank will resume business at once. We also have by telegraph a statement taken from the Chronicle, which purports to give the total assets and liabilities of the old concern. If this showing be correct it would appear that there is no lack of resources to meet every obligation.
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THERE has been a small financial flurry in San Francisco. A run was made on the Bank of California, and after paying out $1,400,000, it was compelled to stop payment. This produced great excitement, and a run was made on the other banks, two of which were driven to syspend temporarily. The cause of these suspensions is attributed to disastrous stock gambling. There was too much inflation. One of the most serious results of these suspensions is the suicide of Ralston, President of the California Bank. He could not stand the dis grace of the thing and SQ drowned himself.
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ON the 27th of September there was great excitement in San Francisco over the failure of the Bank of California, the immediate cause of which was a run made by depositors. Depositors also drew heavily upon other banks, but none of them euspended. At a meeting of the officers of the bank immediately after the doors had been closed the president, Mr. Ralston, was requested to resign, which the did. In the afternoon Mr. Balston rode to the beach and while bathing was drowned, whether he intended to commit suicide or his death resulted from appeplexy is unknown.
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CALIFORNIA NOTES. SAN FRANCISCO, Sept. 9:-There is no perceptible run on the United States Treasury to-day for the redemption of the gold notes of the National Bank and Trust Company. The regents of the State University have elected D. O. Mills as treasurer, vice Ralston. The Finance Commlttee of the board report that the University will lose nothing by the failure of the Bank of California, being protected by the late treasurer's bond for $150,000.
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FINANCIAL. SAN FRANCISCO. SAN FRANCISCO, Sept. 9.-The affairs of the National Gold Bank and Trust Company are proceeding favorably. Since the panic the bank has liquidated claims of depositors to the amount of over $1,000,000, and a statement of its condition shows a surplus, as regards depositore, of over $1,400,000. There was no perceptible run on the United States Treasury to-day for the redemption of gold notes of the National Gold Bank and Trust Company. The Regents of the State University have elected D. 0. Mills Treasurer, vice Ralston. The Finance Committee of the Board have reported that the University will loso nothing by the failure of the Bank of California, being protested by. the late Treasurer's bond for $150,000.
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ThePablic Spirit and Enterprise of 11. C. Raiston-His Estimation in California. NEW YORK, September 10.-The Sun publishes a letter from San Francisco about the suspension of the Bank ot California and the death ofits President, Mr. Ralston, in which appears the following: Mr. Ralston assigned all his property, in the amount variously estimated at from $2,000,000 to $4,000,000, in trust to Mr. Sharon for the benefit of the creditors of the bank, an act that abundantly proved him
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The Fallure of the Bank of California. SCENES AT THE BANKING HOUSES. The San Francisco Chronicle of August 27 has a graphic account of the excitement occasioned in that city by the breaking of the Bank of California. It appears that the more wary customers, who had early got wind of the condition of affairs, had for two or three days been withdrawing their coin from the bank, but it was not until the morning of the 26th that the "run" fairly set in. We quote
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# BRIGHTENING OUTLOOK IN SAN FRANCISCO. SAN FRANCISCO, Sept. 28. - Payments on account of the assessment on the syndicate fund of the Bank of California has been lively to-day, and a great portion of the fund is now in the vaults of the bank. The San Francisco Stock Board to-day authorized the payment of 20 per cent of its subscription of $250,000. The bank will probably reopen on Saturday next. The usual semi-monthly collections to-day showed prompt payments, and no suspensions are reported.
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Nor a single mercantile failure has occurred in San Francisco since the suspension of the Bank of Cali- fornia, a fact which speaks well for the sound condition of the business community of that city.
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Suspension of Clayton & Co. SAN FRANCISCO, Oct. 1.-The suspension of Clayton & Co. will probably only last a few days. The creditors are disposed to grant an extension. The Bank of California opens for business at 11 o'clock a. m., tomorrow.
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It is a remarkable fact, and very creditable to the San Francisco savings banks, that the failure of the Bank of California was not accompanied nor followed by anything in the shape of a run on them. They have 56,377 depositors, and are the depositories of large amounts of money, and yet only 713 persons demanded their money on the day the great bank failed.
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San Francisco held high jubilee on Saturday of last week over the resumption of business by the Bank of California. There was a big crowd around the bank all day, bands of music were present, more money was deposited than was drawn out, thousands of bottles of California wine were guzzled, and generally there was & big trune. The bank had suspended just dirty eight days. nobody had lost a cent by it, and no panic had resulted.
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BANK OF CALIFORNIA SUSPENSION-F. H. G., City. The Bank of California suspended August 26, 1875, and resumed October 1, 1875.