The Goldfield news. [volume] (Goldfield, Nev.) 1904-1911, 1907-10-26
THE LOCAL FINANCIAL SITUATION

THE LOCAL
o1Dr1E1D is passing through the most trying period Of her history The
times re such as try msn's souls and call for wisdom and forttuds Of
Largely because of the financial uphsaval of the East, which has
been nothing short of a panic, a crns has fallen upon oodasd. Her banks arr
temporarily closed; her ore purchasing agencies refuse for a time to accept
shipments. and al a result several Of the producing mines and leases have boon
It is = condition that could scarcely have BEEN orssssn and obviatsd; but,
happily, it is also . condition that will soon pass away and with its passing
0odAed will be upon a more solid foundation than evr before in herr espend-
The panic in the East was felt in aoldneld quicker and with more FORGET than
most any other community in the west, If not the entire country. ooldaeld is
especially sensitive to eastern financial changes in that dealing altogether in
money, and most Of that money from the East any depression or any imitation
at the money center is reflected a nc in this camp. Money from the East buys
ou stocks an finances or mines; it is money from tn East that keeps the min
es i work and buys u ores Consequently when there is any stingency in
the East and Interruption Of the dow Of money in our direction it s felt most
For several months tho tightening # money matters in the East has been
noticed in aoldaeld. It las boon evidenced more in the market for Golddeld
been . heavy purchaser Of Nevada issues. especially of Nevada promotion stocks
The gradual but constant decline in the volume Of eastern orders has been appar
investors had other uses for their money than that Of buying mining stocks. The
market for railroad and industrial securities ws going to pieces and the whole
financial east seemed headed for . cataract
In the meantime the money situation in ooldasd corrapondingiy frightened.
Mine operators brokers and promoters had thedr. obligations previously assumed.
to DO met with the money which ws not forthcoming from the accustomed
sources. The banks which had BEEN enisns almost o the point of indescstion,
began % shut down IN loan and call in their contracts They knew the stua-
ton better than the buhnsss public from which some complaint arose.. But the
Iane OF TN Hnnze an was coseyf onowed by IN great hnickerbock1
Trust company and other banks of lesser magnitude. and the collapse # ONT or
than n day rose to 90 per cent and a general crash seemer inevitable.
1t was then the ooldned banks acted. and not until then. wednesday
90 ..,nr or.r.d ~ - ~. snt ,r+ :. hor. h.nt a. c.~.n cw. !.
shock Of the eastern panic was felt all wei Nevada The governor wisely pro
claimed . banking holiday lasting three days and tho John s. Cook bank and the
local branch Of the Nye and ormby County banks complied with the proclama-
ton
So much. in part for the caus leading up to the present financial situation
in GddAsd
Now, let up analyze III situation AM see how Tar 0oldned is responsible of
the plight in which she finds herself. In the first place, the only bank IN Gold
field that voluntarily suspended business an closed is doors before a holiday
was proclaimed. vas not . Godhed bank al all, but n II numerous branches
Of an institution that had its headquarters in Carson City from which place
the order ann closing all branches If the bank located in Eve different towns
It develops that tn suspension II these banks was not due to any insolvency of
the 0oldhed bank, but must have rested with the other branch or SON one of
them:f for te acting manager Of the local branch Of the State Bank and Trust
company hasp publicly stated that the order to close came As a great surprise. as
his bank, at least was in a solvent condition. There had been no run upon this
bank The public had manifested not the least strust, and so FAR Al the public
couldse the bank closed without n warrant However this may be- the fail
ue, II suh it be,w will not be a bad one Tho home institution telegraphed the
day aftr closing to hav all accounts balanced and forwarded as it expected to
be able % pay in full So much for this bank.
The only other bank OF which there s considerable run. started by the
closing of the local branch of the State Bank and Trust company vas another
foreign institution AM likewise a link in another chain Of banks. This was
the Nye ami ormsby county bank, with headquarters in Reno and branches in
run Of wednesday all right, and posted a notice that it would reopen OF the term
inationo Of the bank holiday. This bank is believed to be solvent; but If 1t be lot
solvent and prepared to reopen 1t the time specified. it cannot BE- said that it was
the local or 0oldheh branch that pulled it down. The fact is this bank las made
an enormous amount o. money N Of 0odhed.
Now, as to the bank Of John 8 Cook 4 Co. This is practically the only homo
bank in ooIdnsd. True. it has w branches n Il Tonopah and n i Rhyo-
solid As Gibraltar. 1t has abundant money o. hand to meets any emergency. prob
ably two dollars or every n that would be called FOR in the most determined
rn Behind the bank arc " 4 the weafthiest non In the West Senator Nixon
and George wngneld. both II whom announce that their private fortunes II nee
essary.v win be placed at the disposal Of the bank, in order that no depostor sf
fen. This bank will reopen It the end Of the bank holiday and it Is moro than
ukMyt that two dollars will b. deposited where n is withdrawn
II Is thus evident that there is nothing the matter with Goldfed to cause
. suspension Of her banks al the only purely local institution is sound and ready
o resume business while the others are entanGed with outside alliances and are
updm suspicion in a case n suspension in the other. In the cas- II the form
en-. IL il asserted with confidence by the best posted, that it is solvent and win
~ clmd there Is . well founded belief that when It hqudates or resumes bust
nen IL iii be able 10 pay dollar Tor dollar. All in all, 0oldhed AN take much
satsfacton ut Of tn fact that her banking institutions while passing through
mel : crhd, win emerge, probably, without he loss Of . single dollar 10 . Gus
<-~ TnAa ~xsksmenf n fafu reveals 4 condition thaf il croditablat To Gold