Hostname: page-component-78c5997874-4rdpn Total loading time: 0 Render date: 2024-11-15T05:52:58.275Z Has data issue: false hasContentIssue false
  • English
  • Français

Banking and Bank Legislation in California, 1890–1915*

Published online by Cambridge University Press:  11 June 2012

Mansel G. Blackford
Mansel G. Blackford
Affiliation:
Assistant Professor of History, Ohio State University
Get access Rights & Permissions [Opens in a new window]

Abstract

While events of major significance for banking occurred on the national scene in the populist and progressive years, noteworthy changes also materialized on the state level. Like their brethren elsewhere in the country, California bankers struggled through their organizations with such problems as how to achieve “sound banking,” how to influence the political process in their state, and how to give banking more of the trappings of professionalism.

Type
Research Article
Information
Business History Review , Volume 47 , Issue 4 , Winter 1973 , pp. 482 - 507
Copyright
Copyright © The President and Fellows of Harvard College 1973

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

1 This essay is based on Blackford, Mansel G., “The Politics of Business in California, 1890–1920” (Ph.D. dissertation, University of California at Berkeley, 1972), chapter 6Google Scholar.

2 Kolko, Gabriel, The Triumph of Conservatism (Chicago, 1963)Google Scholar and Wiebe, Robert, The Search for Order (New York, 1967)Google Scholar.

3 For the structure of banking on the national level see: Myers, Margaret, A Financial History of the United States, (New York, 1970), 248Google Scholar; Redlich, Fritz, The Molding of American Banking (New York, 1968), II, 175–180Google Scholar; Sylla, Richard, “American Banking and Growth in the Nineteenth Century: A Partial View of the Terrain,” Explorations in Economic History, IX (Winter, 1971–1972), 197–227Google Scholar.

4 California Bank Commissioner, Annual Reports 1890–1908 (Sacramento, 1890–1908)Google Scholar; hereafter cited as C. B. C. Report. For the exact figures, see Table I.

5 C. B. C, Reports, 1895, 4–12, 1900, 3–6, 1905, 83–85. For the exact figures see Table II.

6 California Banker, II (May, 1909), unpaged.

7 On the development of correspondent banking see: Fischer, Gerald, American Banking Structure (New York, 1968), 110–121Google Scholar.

8 California Bankers Association, Proceedings of Annual Convention, 1909, 102, 1912, 231; hereafter cited as C. B. A., Proceedings.

9 Cannon, James, Clearing-houses (New York, 1905), chapters 3 and 10Google Scholar; Redlich, Molding, II, 45–59, 158–166.

10 Armstrong, Leroy and Denny, J. O., Financial California: An Historical Review of the Beginnings and Progress of Banking in the State (San Francisco, 1916), 26Google Scholar; California Bankers Magazine, I (June, 1890), 81Google Scholar; “Constitution of the San Francisco Clearing House of 1876 as Amended February 9, 1886,” (San Francisco, 1886), 1Google Scholar; Graves, J. A., My Seventy Years in California, 1857–1927 (Los Angeles, 1929), 320Google Scholar.

11 C. B. C, Report, 1896, 4; California Bankers, II (January, 1891), 483–84; John Finlay, “Banks and Banking in California,” Overland Monthly, (January, 1896), 94; Graves, My Seventy Years, 320; San Francisco Clearing House, Minutes of the Board of Directors Meetings, 1884–1900 (Bank of California Archives, San Francisco, California)Google Scholar.

12 C. B. A., Proceedings, 1909, 44; Graves, My Seventy Years, 323–24; Wright, Benjamin, Banking in California, 1849–1910 (San Francisco, 1910), 53–55Google Scholar.

13 Plehn, Carl, “The San Francisco Clearing House Certificates of 1907–1908,” Academy of Pacific Coast History, I (January, 1909), 3–14.Google Scholar

14 Sacramento Bee, November 1, 13, 1907; Cross, Ira, Financing an Empire (San Francisco, 1927), II, 895Google Scholar; O. M. Souden, “Los Angeles Bank Scrip,” in Armstrong and Denny, Financial California, 141.

15 C. B. C, Report, 1908, 16; “Constitution of the San Francisco Clearing House Association, 1909” (San Francisco, 1909), 10–12Google Scholar.

16 Bank of California, Minutes of the Board of Directors Meeting, June 23, 1908, Bank of California Archives. (Contains contract between San Francisco Clearing House and its first examiner.)

17 C. B. A., Proceedings, 1912, 224.

18 Graves, My Seventy Years, 326.

19 Cleland, Robert and Putnam, Frank, Isaias Hellman and the Farmers and Merchants Bank (San Marino, 1965), 82Google Scholar; Graves, My Seventy Years, 326.

20 C. B. A., Proceedings, 1912, 228.

21 Merchants Association Review, XIII (September, 1908), 4.

22 Coast Banker, III (November, 1909), 213.

23 C. B. A., Proceedings, 1907, III.

24 Insurance and Investment News, X (September 12, 1912), 191Google Scholar.

25 Coast Banker, II (May, 1909), unpaged.

26 O'Donnell, Aloysius F., “The Financial Plan of Certain Hydro-Electric Corporations in California,” (M. A. thesis, University of California at Berkeley, 1922), 16, 25–26, 33, 36Google Scholar.

27 William Hutchinson, The California Investment of The Diamond Match Company, typewritten copy, 1957, the Bancroft Library, University of California at Berkeley.

28 Redlich, Molding, II, 276–282, 301.

29 Ibid., 236–38.

30 C. B. A., Proceedings, 1891, 78, 1894, 30, 45–48, 1895, 51–55, 1898, 63–68, 1900, 33–47, 1901, 16–19.

31 Ibid., 1900, 32.

32 Ibid., 1902, 36,1914, 55–57.

33 C.B.A., Bulletin, September 28, 1912, February 10, 1914; C. B. A., Proceedings, 1912, 90, 1913, 55, 113–122, 1914, 61–64, 129; Coast Banker, IX (December, 1912), 436–37; Western Banker and Financier, VI (November, 1916), 113, IX (December, 1918), 294, XII (December, 1920), 129. This system should not be confused with chain banking or bank holding companies. Each bank in California groups maintained its individuality of ownership.

34 C. B. A., Proceedings, 1897, 18, 1908, 265, 304, 1909, 136–140, 164, 1922, 54–56; Coast Banker, I (October, 1908), 32Google Scholar.

35 Nash, Gerald, State Government and Economic Development: A History of Administrative Policies in California, 1849–1933 (Berkeley, 1964), 281Google Scholar.

36 California Bankers, IV (April, 1894), 844–854, V (January, 1895), 636–39; Cross, Financing an Empire, II, 617.

37 C. B. A., Proceedings, 1894, 83–85, 89, 94–113.

38 Ibid., 1895, 25; Lovell White (president of C.B.A.) to all members, February 8, 1895 in C. B. A. Scrapbook 3. At C. B. A. headquarters, San Francisco, California.

39 Bee, January 17, February 15, 1895; Cross, Financing an Empire, II, 628–29; Crumb, Joseph, “Banking Regulation in California” (Ph.D. dissertation, University of California at Berkeley, 1935), 60–61, 71–72Google Scholar; San Francisco Chronicle, January 17, February 19, March 14, 1895.

40 C. B. A., Proceedings, 1895, 38–58; C. B. C. Report, 1895, 3.

41 Bee, January 23, 31, February 17, 1905; Chronicle, February 17, 18, 1905.

42 Friedman, Milton and Schwartz, Anna, A Monetary History of the United States, 1867–1960 (Princeton, 1963), 156–173Google Scholar; Myers, A Financial History, 245–16, 258–263.

43 Wright, Banking in California, 54.

44 Crumb, “Banking Legislation,” 88–90; Wright, Banking in California, 54–55.

45 C. B. A., Proceedings, 1908, 44.

46 Bee, November 7, 8, 15, 19, 1907; C. B. A., Proceedings, 1908, 187–190– Chronicle, October 31, November 8, 12, 15, 16, 20, 21, 23, 1907.

47 C. B. A., Proceedings, 1908, 218–222, 229, 237–257, 283.

48 Ibid., 232–36.

49 Ibid.

50 Commonwealth Club of California, Transactions, III (June, 1908), 222–23, 234–35.

51 C. B. A., Proceedings, 1908, 259–260,1909, 81–83.

52 Ibid., 1909, 102, 114, 1912, 231; Coast Banker, VII (December, 1911), 37; “Draft of an Act Prepared at the Request of the Joint Legislative Committee on Reform of the State Banking Laws by the Legislative Committee of the California Bankers Association, October, 1908,” in C. B. A. Scrapbook 1.

53 “Proposed Laws Defining and Regulating the Business of Banking in the State of California by Special Joint Legislative Committee on Banking Laws, November, 1908,” in C. B. A. Scrapbook 1.

54 Bee, January 22, 1909; Chronicle, January 22, 1909.

55 Friedman and Schwartz, A Monetary History, 171–72.

56 Bee, February 2, 1909; C. B. A., Proceedings, 1911, 39; Coast Review, II (October, 1908), 4.

57 C. B. A., Proceedings, 1909, 44.

58 John Drum to C. B. A. members, September 17, 1910, in C. B. A. Scrapbook 1.

59 C. B. A., Proceedings, 1910, 77.

60 Ibid., 1909, 132.

61 Coast Banker, III (September, 1909), 129.

62 Ibid., IV (February, 1910), 63, IV (April, 1910), 172.

63 C. B. A., Proceedings, 1911, 56–64; Coast Banker, VI (May, 1911), 294.

64 California Superintendent of Banks, Annual Report, 1911 (Sacramento, 1911), 4–11; hereafter cited as C. S. B., Report.

65 Ibid.

66 C. B. A., Proceedings, 1912, 13–18, 1923, 45, 94–96, 1914, 50–51; C. S. B., Report 1911, 4,1913, 45.

67 C. S. B., Report, 1909–1919.

68 For such complaints see above in this essay.

69 Nash, State Government and Economic Development, 279.

70 Marquis and James, Bessie, Biography of a Bank: The Story of the Bank of America N.T. and S. A. (New York, 1945)Google Scholar; Nash, State Government and Economic Development, 290–91.

71 C. B. A., Proceedings, 1905, 38.

72 On the professionalization of American business in this period see: Heald, Morrell, The Social Responsibilities of Business: Company and Community, 1900–1960 (Cleveland, 1970), chapters 2 and 3Google Scholar.

73 C. B. A., Proceedings, 1907, 80–88; Heald, Social Responsibilities, 71.

74 C. B. A., Proceedings, 1909, 227–28; Coast Banker, I (October, 1908), 15Google Scholar, III (November, 1909), 223, IV (March, 1910), 132–37, VIII (Jane, 1912), 487; Western Banker, VIII (February, 1917), 31Google Scholar, XI (February, 1920), 185; XI (April, 1920), 229.

75 Coast Banker, II (April, 1909), 170Google Scholar, III (November, 1909), 223; Western Banker, XI (September, 1909), 53Google Scholar, XI (April, 1920), 229.

76 Coast Banker, IX (December, 1912), 436Google Scholar.

77 Ibid., I (October, 1908), 15, II (April, 1909), 190, in (November, 1909), 254 X (June, 1913), 521, XIII (September, 1914), 230, XIII (December, 1914), 487; Western Banker, VI (January, 1916), 15Google Scholar, VI (June, 1916), 141.

78 C. B. A., Proceedings, 1895, 37.

79 Coast Banker, XIII (November, 1914), 388Google Scholar.

80 C. B. A., Proceedings, 1901, 79.

81 Ibid.

82 Ibid., 81.

83 Ibid., 79–80; Western Banker, XI (January, 1920), 147Google Scholar.

84 Commonwealth Club of California, Transactions, III (June, 1908), 222–23Google Scholar.

85 Ibid., 260.

86 C. B. A., Proceedings, 1907, 112.