Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1875-08-28
WHAT CAUSED IT.


WHAT CAUSED IT.
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From the very hrst Of the present
overwhelming financial disaster he story
has been current thas fiood and 1hsn
we're the primary cause. Il was freely
stated that they deliberately secured all
the money TO b obtained al The prine-
pal banking institutions In San Francis.
co. and then started the run on The
Bank OF California, knowing thai The
Bank could obtain no outside assistance.
Thar object was stated 70 b 70 thus
force the Bank 70 give them the control
Of the mines and mills In which II va
concerned In this section. In rsfuta-
ton Of this story We COPY the following
extracts from an ~intsrvisw on Thursday
evening BY Q reporter Of the San Yrsn-
cisco Chronids With W. O. Ralston. since
deceased. and j. O. Flood:
Mr.. Food-Yssterdsy the bank on.
cials came 10 me and offered 10 give mo
control Of the bank, provided ] would
protect The ~dspositors. / told then ]
would protect them a far a. their sscur-
tiles justified me In doing. Thsy offered
to give me 81. OO0, 900 security against
loss; but what 10 1900. 900 against .
probable loss OF $l3, 000, 000.
Rsportsr-But you are credited with
creating the run on the bank.
Mr.. flood-I have been u informed.
This community Il now In afearful con.
dition, and will imagine anything and
believe everything. II thsrs u any way
OF allaying the excitement u ought 70 be
done. Let me tell you that 5000. 900 OF
my money. besides el7. 900 OF Consoli.
dated Virginia fund, 10 now there In the
bank, and I am In a bad nx - any
body. 80 ,ry - "a
.Reportsr--How about Macksy draw
ing out 81, 800, 900 q abort time agof
Mr.. Rlood-No such sum Of money
was over drawn BY Mscksy. Il u en-
tirely false and the rumors 70 that sffsct
without foundation. "
Rsportsr-And about the $500. 900
check. for which you refused 10 accept
anything but coinf
Mr.. Fiood-The check was certified
check for $500. 600, given me By Louis
Garnstt. OF the San Francisco Assaytng
and Refining Company. some time Last
April for money advanced on bullion.
Last "wednesday I ssnt the cheek 70 the
bank for payment, Mr.. RAlston came 70
ms and said. "Fiood. you VIII hsvs 10
lot mp on u.s." ! said, "What's the
matteri" He replied, 1--WE have not
enough coin TO pay that check" I then
asked him, "whsn . you payi" He
said, '.Iu three OF four dsys." Then !
said, ''If I put Il In three checks, 10 be
drawn one Thursday, ons Friday and
the last on Saturday, will that be satis-
factoy?" He replied that u would, and
and the checks were 20 drawn. The
frst was presented By Donohus, Kelly
& Co.'S this morning. whore u was left
for collection, wa paid, but shortly
afterward Mr.. Mills came 70 me and
said. 'If We cannot get relief the bank
will have TO 60 under" said I did
not SEQ how ! could render any sssist-
ance, and he then went on.
Reporter-Did you deposit your two
remaining $780, 900 ohscksf
Mr.. Flood No, ! did not ! did not
want to rest under the i~mputation Of
having closed their doors, and concluded
that I would rather lose the amount than
press the payment. us.
Reporter--How much does the Bank
OF California owe you today
Mr.. Flood-The tive unpaid checks
representing $20o, oo0-and $4,000 Of
the Consolidated Virginia funds.
Rsporter-what IL your knowledge or
opinion OF the recent condition OF The
Affairs Of tbs bank : r llt lh IL
Mr.. Fiood-They are In . very bad
AZ Sl3, 600, 900 Of deposits and o..
600, 900 Of overdrafts Il mot . very good
showing. But Il 10 . fact, and the Soon
or the truth 10 known the better. The
bank now belongs 70 the Deposition. and
they are entitled 10 The informahon.
Reporter What has caused The pres
emit stringsncy In the money market.
Mr.. Fiood-Ths fact Of there bsing
NO money In the country. Within .
few days past 100000 have bssn
sent into the country 10 movs the wheat
crop, and that with the shipments 10
the East has left N absolutely without
money.
Rsportsr-Mr. Flood, II Il 10 . fair
question, how much money have you
withdrawn from circulation and looked
mp for the purpose Of starting your new
Nevada Bankf
Mr.. Piood-Ih have not looked up any.
I have Z, 000, 900 loaned on security,
and expected 10 get In about ei.000,000
outside OF this, With vhich'to open the
bank. I thought that would b enough
ready capital to start with. A million
dollsrs IL considerable monvy, you
know. The four millions ! did not In.
tend to disturb, a. Il would have 10 b
loaned again II put Into 0 bank.
Rsporter-But the report on the street
Is to the effect that you have locked up,
all the money you could get hold Of, and
drsv prslfv hAavv nm tha aaviuOu bankaY