The Goldfield news. [volume] (Goldfield, Nev.) 1904-1911, 1906-04-27
FINANCIAL EFFECTS OF THE DISASTER

Last weeks aoldheld News was issued at tn crss of affairs in San Fran
cisco The whole country was immersed in gloom and uncertainty The breadth
nd extent of the catastrophe was not known; its effects upon the country gen.
orally could not be determined, and the immediate efectsu pOnG 0ldheld n the
Southern Nevada mining district could only be cOnjectured.
A week has passed and the situation has had time to clear ITSELF, and condi
ions present and future can be discussed with full knowledge and confidence
In the first place, the disaster to the Golden Gate city-the destruction Of
property, the loss of life and the financial confusion, are not as great as appre
hended an reported in the first gonizing moments. Every days development
proves that the wreck is not nearly SO complete rs opular gna' pc'uroa
it, although it is frightful in the extreme.
Physically the larger part of the city is destroyed Much of the business pr
ton is in embers an a 0nslderane pn' o. ee .eslaen'e soOu0u Du " .@ae
ute to modern architecture that all of the large business blocks of steel structure
greater and more beautiful metropolis which will surely be built; for already
smDes of the past arr being swept away for a new city more beautiful and
reslendent than day the night. San francisco will arise from its ashes magnh-
cent in proportions with the heritage Of all that is bestin modern city building
M civic life as its own Almost before the embers had died away, confusion
agave way to organization and definite purpose took the place of panic and indie
cson. BY the hrsto # the week the financial situation ws adjusted as ar IS
possible and the temporary stnngency relieved. A food # money IA poured an
upon the city institutions and all apprehension If financial disaster layed. The
bank vaults were found to be safe and III insurance companies aided in the dis
apation of the gloom by announcing thate every nk woaa d. papo IN ih ihe
payment OF the fir lossesw will release al least s11oooooOo, the greater part Of
which viii be utilized in rebuilding the city, thereby distributing enormous sums
through te channels If trade. The insurance companies will not enforce the
earthquake exemption clauses in their policies and the state law covers damages
released for the neuleus If a new city, San Francisco is being deuged with
money from every source and it may b said that never before in its history has
thu city had So much ready money as at present.
: An inspection If the national banks has been made by the government au
sthmdties, and the state banking inspectors have made a anvas of te state
banks, and an authoritative. statement has beeni issued by both of thu most optt
mishc character The bank examiners and state bank commissioners hv the
situation well N hand have NJ fears OF TIT result. me government mas
come to any relief that ma BIZ needed upon the opening If thu banks, by placing
cash Al. III government mint for Use of the San Francbcoi institutions pon te
graphic order. In the meantime congress has appropriated s25ooooo fr the i'm
mediate needs of the CITY, which is made available al once
LAM morn aa = :" var s. 81. su ny %o , ~ Womb ~ wise to close he banks throughout
From Monday moon of this week up to the present time not a ban in the entire
state of California las been open When they will resume depends entreiyu upon
thu reopening of the San Francisco banks
The same cause that operated to close all the banks of California aso closed
the banks of Nevada. The connection between the Nevada and San Francisco
banks and other business interests is SO direct that to IL intents n purposes
Nevada might be a part of California. II was upon the suggestion Of the CALI
forniaa authorities that the acting governor of Nevada Monday proclaimed a legal
holiday throughout the state n thereby closed the banks AT first there was a
disposition to crhche this action If the governor as unwarranted and lladvsed,
as it interrupted general business of the state ant might lead to sedousm isappre-
tensions. Especially severe wa the criticism in Goldfeld, as it was known that
all the banks here were amply fortified and able to meet any and IL demands
that might be made upon them; and the banks themselves we're disposed for a
time to ignore the proclamation of the governor, and remain open tor The con-
v@ueucs # their customers. Blu wiser counSel prevailed after the act OF the
closing of all the California banks became known, and the motive for thu action
fully realized. The closing of the banks sheen hardship upon Godfed bst
ness men. 1t necesatated the still further suspension OF the mining exchange
calls and put everybody out of business generally. But there is a common dis
uoxtion to accept the situation as inevitable and altogether necessary for the
relief of a stricken people, and Goldfeld is making the best Of n awkward stua
shn.
Unless it appears necessary for the still further protection Of the San Fran
position vas entirely sound before thu San Francisco disaster and on tn day
they closedt their oorss still the interim has only strengthened their position, and
an the goldfed banks are in better condition so far as cash resources are con-
cerned, than perhaps at an other inn in their history. Durng ne week they
bave had opportunity 20 call in whatever of their reserves in New York and
uetber the local banks have more ready cash on hand than there can possibly be
INV denand for Undoubtedly there will be some nervous people who will de
mand their money If III banks as soon IS they OPEN We are authorized to say
for the banks that any persons wishing to withdraw their money will be cheer
fuuy accommodated, as it viii cause them not the least Inconvenience. While it
is rue that all the doldfad banks have beer carrying a portion of their reserves
whit hi San Francisco banks, It is also true, that these deposits were only 2
small mart Of heir resources. Perhaps threefourths of the reserves of the Gold
field banks are deposited with their correspondents in New York and Chicago
and these reserves are immediately available.