The Goldfield news. [volume] (Goldfield, Nev.) 1904-1911, 1906-08-11
VIEWS OF l.. NJ. SULLIVAN
TRUST COMPANY
The L. M. Sullivan Trust Company has the following to say in its
Market Review today:

A genuine 'bull' movement in Ne
vada mining stocks is in full swing.
Higher levels are being recorded daily.
Substantial gains are the regular order
of the day. and everyone is buying
from the miner who tolls in the under
ground workings for days pay to the
mine manager, capitalist or merchant.
Orders to buy are far more general
thar selling commissions, and brokers
are again finding 1t a most difficult mat
ter to execute orders to purchase Sc
c~urities at limits. Every session of the
San Francisco and Goldfeld exchanges
shows an advance, generally from two
to five points, and the public is eager
to acquire shares in the standard COM
panies Of Goldfeld. Manhattan, Bull
frog and Tonopah.
On the 18th Of April last, the day be-
fore the San Francisco disaster, Ne
vada mining stocks-and particularly
Manhattans, in which San rranciscans
were very heavily in~terested-had ex-
perienced a rise from three months
previous, and a swinging market was
in progress. With the earthquake and
it's attendant disasters there came a
complete change. For more than a
month after the fire the banks of Cali
fornia and Nevada were closed and
there was a condition approaching
chaos in financial centers. Then.
throughout the month of June, al
though the banks were open, lne fnan-
cial atmosphere was murky, for no
money could be borrowed in San Fran
cisco on listed Nevada mining shares,
which had previously been considered
gilt-edged security and brokers them
selves were unable to obtain sufficient
money from their bankers to operate
their business. There were days and
days of uncertainty and the investing
public looked askance at the market.
The natural result was that issues 4,
far below their real value and a period
of extreme dullness, lasting sixty days.
prevailed.
This all changed in the latter part
of July, during which month the banks
of San Francisco received over $780,
900. 900 sent westward by large insur-
ance companies that were engaged in
having their losses. Their Golfers soon
became overlooking with a plethora of
cash and they were again looking about
for opportunities to loan out their sur
plus. The banks of San Francisco are
now so full of money that they posi-
lively refuse to pay interest on time
deposits. Many of them are now en-
gagged in loaning money to New YORK
trust companies at a rate of 2h per
cent. per annum There is more money
in the California metropolis today than
people know what to do with. Oppor-
t~unities for investment there are scarce
as vet. Things are chaotic in a real
estate way. The topography of the
new and greater city has not yet been
determined. The supervisors of that
city have passed a resolution making
it Impossible for yon to erect a
wooden building more than one story
in height, and as these are the only
kind that can be constructed on short
notice for the big retail houses, little
capital is required or car be employed.
The only collateral for loans. then. is
either unimproved real estate or mining
shares.
With this anomalous condition obtain
ing, mining stock brokers in San Fran
cisco are besieged with proffers of cash
loans. They are able to borrow all the
money they want and more. Where six
weeks ago It was impossible for an
investor to get a broker to carry him
on a 6o-day or s0-day buyer contract.
1t is now the rule for the brokerage
houses to desire their clients to con-
tinue their futures.
Again, San Francisco is beginning to
invest a lot of money in mining stocks.
1t is the easiest method and the one
nearest at hand for the investment of
large sums now being drawn down from
the fire insurance companies.
There is also a marked improvement
in financial conditions in New York.
When the big insurance companies were
called upon to pay their enormous loss
es in California they were forced to
throw on the eastern market millions
of dollars worth of Industrial and rail