country from New York to San Francisco In 1893 left scarcely a ripple in 

 this State, because of the great strength the banks as a whole presented. 

 The silver craze was largely responsible for the panic of 1893, but Califor- 

 nians, though interested in silver mines to a considerable extent, never aban- 

 doned their early formed loyalty to gold as the best of the metal standards. 

 This latest test of their adherence to that standard fully demonstrated the 

 accuracy of their judgment, and did much to set the country right on that 

 proposition. 



Realizing the desirabilitiy of State Supervision of State incorporated 

 banks, the Legislature in 1878 authorized the organization of a Bank Com- 

 mission. The Commissioners began their work of bank examinations 

 about the middle of that year, and the results early showed the wisdom of 

 their appointment. Some half-dozen banks were soon closed because of 

 impaired capital and other irregularities. After the Commissioners had com- 

 pleted their first round of examinations, the financial atmosphere was much 

 clearer. The fact that the banks have since been open to such examinations 

 annually, and oftener when deemed necessary, has had the effect of putting 

 the officers of these institutions on their good behavior. 



The banks under the jurisdiction of the Commissioners are obliged 

 to make three reports annually, always on a past date, which forestalls 

 doctoring of any kind. The report for August 25, 1905, showed 407 banks 

 in operation, classified as follows: Savings banks, 109, including 12 in San 

 Francisco; commercial banks, 275, including 34 in San Francisco; private 

 banks, 23, nearly all in the interior. The aggregate resources of the 407 

 banks on that date were $515,309,084, and the individual deposits were 

 $400,512,074. Compared with the report for August 18, 1904, there was 

 a net gain of 57 banks, $43,506,385 in resources and $39,221,566 in in- 

 dividual deposits. On August 25, 1905, there were 95 national banks in 

 operation in the State, with resources aggregating $181,698,713 and In- 

 dividual deposits of $92,1 1 1 ,458. The nearest corresponding report of these 

 national banks for 1904 was September 6, when 76 banks reported their 

 resources at $135,339,972 and their Individual deposits at $70,567,131, 

 showing a gain for the year of 19 banks, $46,358,741 in resources and 

 $21,544,327 in deposits. The banking progress of the State for the year 

 ending August 25, 1905, was unprecedentedly large, as was also the pros- 

 perity of the banks. 



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