Morning appeal. [volume] (Carson City, Nev.) 1877-1906, 1902-07-27
SOME BANK HISTORY.
How The People Of This City
Were Saved From Ruin

talk on all sides. It is known fact
that the Bullion Bank is one of the
the soundest institutions on the coast,
and was made so by the managers
that took it at the time when a wreck
seemed to be the only result. 1t was
not known to the people just how
close the institution came to shutting
up shop and leaving nearly two hun
dred depositors with only their bank
books as collateral.
The Bullion & Exchange Bank was
originated by Messrs. Williams, Klein,
Coffin and a number of small share
holders. They did a wonderful bu-
sines for many years and the people
grew to believe that it was as solid
as the Bank of England. All of the
business of the Mint passed through
the bank, and the shareholders were
making money so fast that they could |
not take care Of it, in fact they spent |
it faster than they accumulated and I
before it was realized, the institution |
was in a bad way financially. About !
this time Harry Brown disappeared |
with $4,000. A meeting was held and
the stockholders tecpecially Jake
klein) came to the rescue
and dumped what ready mon
ey they could secure into the vaults.
This was only temporary relief. as
~
securities with California banks 10
/! keep the credit good IN it's ioreisn
| houses.
This was in the ia.,eg part OF May.
and refused, and the last resource
.eTled to be exhausted. Believing
that something Could be done. and
si.at the field WAS open for re-orsani-
cation and a chance l0r Il good bust
ness. MessrS. Les. er, Zones. kirnlaT.
Mack. GOrilam. Woodbury. and Chartz
met with the Old directors TO ;aiN over
The possibility OF ,a!ling Up he sto,k
ard placing coin enough in the vaults
TO run the affairs. While they We're
IN consultation one day one OF the
men iii the front OF the Office hurried
INTO the consultation room and said.
Gentlemen. if you wish to save this
bank. now is the time; here comes
tepositor with check for 81 .ooo and
there is not cash to pay him. \ rus
| lie was made and the money was
I Ir,,, into tho till W,pn tha do
DoSt0r came IN he saw the cash and
went away contented The depositor
was William Woodburn.
A count OF the ready cash showed
just sS56 to pay s1S9,oa9 due deposit
tors. A look over the securities ieid
)y the old ins2l.u-io showed that not
/ over s25,@u0 could be raised and that
l would take time. and that a debt OF
: sfn,-"o vas due the Anglo Ca;ifoi MIA
sank
Attar the first break. the new stock
holders were compelled to go in. and
they took the helm Of the skiing ship.
The Old board was counted out and
new blood injected. The working force
: vas likewise shipped and George
il, Richard and George Oliver placed in
the front end OF the institution. Cash
vas what was needed. and the new
people began to dig Mr.. Lester. g
: relative of the Hobarts forwarded
c he banl. 25.000 1t came in the nfcl
Of time as a rush was made by mum
: Der OF small depositors. and they re
: oeiviIg the cash without wore
il spread the news and the sum save(
ran. In a few days others of thu
new firm added to the cash capital
* .;orham placed $4,000 in the til; Xii
? man followed with 100000; Mack ad
10 I'D s15,co0 and Jim Woodbury. wit
< So 900 ALT Chaartz also placed rea
" money in the working fund an
others added small amounts. TIL
It. "anijal stock was made 100000 an
- placed al one hundred shares at 81, 90
O. a share. 1t was Immediately subscr
bed and the institution commence
. 20 sail on smooth waters. An assess
"a ment Of twenty per cent followed an
N this brought in sufficient money t
carry or the business.
For the next three years the ban
pr "es in a nip and tuck position an
- ,n'E by the greatest care and jud:
= '2ert was i placed on the enviabl
ie footing that it stands on today.
Il There is no question of doubt b.,
he that the parties who reorganiZeu tn
u bank saved Carson fro ma firancis
Of :irae-er that would have wrecked ha
OF ar hcr hi!eines n,on and nearly ever
- nar:y that had a dollar daposite
N the vaults. They worked the share
of the institution up to $1.575 pc
II share at which figure it was dispose
as of few days ago. The new partie
ut who now have control have steppe
H. into one OF the soundest and bes
81 moving banking business on thi
I'll coast. and there is every reason to b.
re 'iave that they will make it pay a