San Francisco County
THE PACIFIC BANK OF SAN
FRANCISCO
THE PACIFIC BANK OF SAN FRANCISCO is the
oldest incorporated commercial bank on the Pacific coast. It was organized February 4, 1863, by a
number of what were then called “ultra conservative capitalists.” At that time the entire country was carried
away with the mania of speculation, and an endorser’s financial rating was
estimated chiefly by his supposed wealth in stocks, and as the stocks were
subjected to dues and assessments they were very uncertain in value. In such speculative times to have a group of
cautious, business men united to form a bank which should be devoted to
mercantile interests, and should be conducted in a strictly legitimate manner,
that should refuse all mining stocks as collateral security, and all credit to
mining brokers, and should discourage opening any accounts with those concerned
in speculative stocks of whatever nature, was considered the height of
folly. Yet, such was the origin of the
Pacific Bank, and such has been its course ever since. For many years it had a rough, up-hill road
to travel, but it kept steadily on, overcoming each difficulty until it is
to-day a towering monument to the truth of its fundamental principles. Twenty-eight years of this policy have grounded
it like a mountain in public confidence. The Pacific Bank is incorporated under our
iron-clad bank laws, by which every stockholder is liable for his pro rata share of all the liabilities of the bank. A depositor is thus protected far beyond the
security given by limited organizations or rules governing national banks. This extra security to the depositor and
creditor of the Pacific Bank has also contributed to its ultimate prosperity.
The
Pacific Bank began with the intention of having a capital of $5,000,000, but it
was soon found that so much money could not be profitably placed in the prudent
way desired, so that after some minor changes were made the capital was
subscribed up to $500,000, then was gradually increased to $800,000, and
finally to $1,000,000. The bank, during
its history, has paid $1,497,803.77 in dividends, and has laid up a surplus
fund of $650,000, $200,000 of which have been carried to the surplus fund
during the year 1887-88, besides paying the regular dividend of eight per cent
to the stockholders; the amount the bank has on hand, besides undivided
profits, amounts to $9,309.43, not to mention the increased values of many
assets that are rated far below the market prices. It has, in addition, paid over $1,800,000 for
salaries, tax and license, advertising and sundry expenses; this moderate
amount covers an entire quarter of a century, and shows how wisely the
institution has been managed. The volume
of business, which in the first year was ridiculously small, now (1891) amounts
to over $225,000,000 per year. It’s
certainly safe to say that the bank could to-morrow pay all its obligations and
divide with its stockholders over $1,650,000.
The stock has steadily risen in value from $80 until now $160 are
offered and $200 are asked, it being thus proportionately the highest priced
bank stock in the San Francisco market.
Its stockholders, depositors, and customers represent the solid,
conservative business men of the coast.
It is well known all over the financial world, and its exchange and
collection accounts have been of phenomenal growth. The policy of the bank has been uniformly
open, and whatever was to be known has been within the reach of those entitled
to inquire.
The
first president was Governor Peter H. Burnett; the second, Dr. R. H. McDonald;
R. H. McDonald, Jr., son of the president, is vice-president; Louis Vesaria,
the trusted paying teller, entered the bank in 1866; M. W. Upton came in 1873,
O. F. Miner in 1875, C. S. Bachelor in 1877, and Emil Belleman in 1881. The present board of directors is composed of
the following well-known gentlemen: R.
H. McDonald, W. T. Wallace, II. Mobury, C. Waterhouse,
A. K. Stevens, J. M. McDonald, R. H. McDonald, Jr., W. A. Grade and Frank V.
McDonald.
Transcribed by Donna L. Becker.
Source: "The Bay of San Francisco," Vol. 2, Pages
642-643, Lewis Publishing Co, 1892.
© 2006 Donna L.
Becker.