The White Pine news. [volume] (Ely, Nev.) 1906-1910, 1907-10-25
rng FINANCIAL SITUATION.

eltenent. nhich has Deen caused By
realization that many corporations
have zen ogercapitalized, and that
tbey are attempting N carr a
greater volume Of business than even
their foo-great capitalization 9lil
justify.
Already there have teen runs On
aegeral banking institutions in Sea
YORK and in other cities, and the air
lg flied x1fb ramor8 Of disaster that
has occurred or il about tn come
Lo1al bankers, representing the
tvo local banking institutions declare
tba, local capitalists. investors and
holders 81 savings accounts need
have nothing to fear from the pres
ent situation. asserting that the 20
called panic Is confined To the rieh
men of the country who have invest
I'd too heavily in securities which.
while perfectly good, cannot he re-
allied upon at moments notice
without depreciation In marketable
valuation.
This depreciation In the valuation
ri stocks Il from perfectly natural
caugea In the first place, there IL
Invariably certain money gtringen-
~ IN all countries where agriculture
IL the greatest industry, between An
gusi and November, by reason Of the
movement Of cropg. Millions Of dol
lars that have been on deposit for
many months are withdrawn by the
agricnlturigtg for the purpose Of har-
yesting their crops. moving them to
the markets. and carrying them until
they are converted into cash.
While this process Of evolution
from the earth 10 the Golfers Of the
banks IL in progress, vast gums Of
money which had been used to pro-
mote and carry on other lines Of In
dnatry, are temporarily withdrawn
from those channels, with the result
Depression
Another feature which eDters
largely into the present situation Is
the campaign that has been waged
against a number of the largest cor
porationg In the country by the fed
eraI government, against oyer-capi-
talization, which has resulted In the
gqneezing Of large quantities Of
water" from these companies, and
has brought about a corresponding
depreciation of the marketable yalu-
alton Of these securities. Other &C.
curities, through sympathy and
through manipulation. have expert
cnced certain amount Of shrinkage,
which was to be expected.
This last phase Of the situation
makes the present so-called panic"
nothing more nor less than a rich
mans scare, which cannot have any
effect on local business conditions
The only genuine failure has been
that Of the Westinghouse Electric
company, which was capitalized for
the enormous sum OF $25 900 900
The operations Of this company have
always been on a gigantic scale, and
vast sums Of money were required
TO carry them through. This cash
has not been Immediately available,
and the company has gone to the
wall
The great majority OF western
banks have escaped the perils that
have been offered by heavy gpecua-
ton In securities of nuctuating valu-
alton. Western banks. with but
very few possible exceptions have
more than double the amount of re-
serve that Is carried under normal
business conditions Occasionally,
but rarely, one IL found that Is not
In condition to meet every demand
that Is made upon It, but those oc-
casions are indeed exceptional.
Local bankers have urged their pa
irons throughout the entire summer
and early autumn, to be prepared for
this furry. They have urged that
they cut down their outstanding ac-
counts, realize on their Investments
and be prepared to face the storm
which was seen to be forming In
financial centers.
Local business men have been wise
enough to follow the advice OF their
bankers. and the consequence Is that
the slump will not have any partic-
ular or lasting effect on local bust