The White Pine news. [volume] (Ely, Nev.) 1906-1910, 1907-10-30
UTAH BANKING LAWS
AFFECT ELY BANKS
NO SHADOW OF DOUBT But THAT
ALL INSTITUTIONS ARE
SOLVENT.

The Bank of Ely and the First Ma
tional Bank of Ely, the two banks of
the district, will not open their doors
this morning.
The suspension is for an indefinite
period, with botn of the banks in the
meantime in absolutely solvent con-
dition.
No room whatever exists for even
the shadow of shade of a doubt in
respect to their solvency and further
than the inconvenience that the tenn
porary suspension will occasion there
will be absolutely no loss to any in
terest connected in any manner with
the Ely banks.
kilograms received yesterday from
President w. w. Armstrong of the
Bank of Ely under date of Salt Lake
City, were identical to each the Bank
of Ely and the First National. They
were shown to The News last night
and a copy of that to the Bank OF
Ely is given elsewhere in these col
umns of the actual facts in connec-
ton with the suspensions. THESE
are due to the following circum-
stances:
A complete tie-up in all the finan-
cial centers of the country, with re-
suit that Salt Lake cannot get money
from Denver because Denver cannot
get money from Chicago nor Chi
cago from New York, and so on
throughout the entire financial chain
of the nation, link by link, affecting
big and little everywhere.
Decision by the Salt Lake clearing
house yesterday, as result of the
general tightness of money, to invoke
provision of law passed by the last
Utah legislature for exercise in such
emergency as the country faces al
present.
This law provides that banks may
decline to honor checks of deposi-
tors for sums of more than 500 al
one time and that checks aggregat
ing $500 may not be cashed within
six days. The Salt Lake City clear
| ing house, as stated above. has called
this law into effect, because Salt Lake
City banks cannot get money on the
outside and in the event of run!
might not be able to avert wrecking
though they are solvent and unde
normal financial conditions would b,
equal to meeting any emergency.
The situation as affecting Ell.
banks is briefly, then, this: Be
cause of the Utah law limiting tn,
amount of money which the banks o
Salt Lake City, the correspondent
and depositaries of the banks of Ely
can pay out at this time and unit
the Salt Lake City clearing hous
lifts its ruling of yesterday, TIL
banks of Ely cannot get money whicl
they have on deposit and due then
in far more than sufficient quaint
ties to pay all demands that nigh
) legitimately be made upon them wer
their doors open.
In other words, the banks of Ely
are in the same position as the in
dividual depositors of the banks O
Salt Lake City; they can draw n
more on their accounts than the in
dividual depositor, who is limited t
800, at the time and not more tina
S2G0 within six days by the Utah la
for the protection of banks in time
of stress and exaggerated fears o
the part of the public.
r The Utah law has no counterpart
in the statutes of Nevada, but it
5 as effective in the case of the bank
: of Ely, because they are depositor
5 in the banks of Salt Lake City, as
the law was creation of Nevada in
stead of Utah.
: 1t is to be added that the banks O
, Ely are entitled to close for the bal
| ance of this week under proclamation
: issued last week by Governor Sparks
providing for a ten days holiday 70
: all banks in the state. Ely bank
: did not avail themselves of the tire
: days provided for last week nor o
J the two they could have utilized thi
week, for SO long as the Utah Law
was not invoked on their Salt LAX
correspondents they had no need to
their funds available from their de
positaries being, as has been clearl
put, largely in excess of any nee
which might arise.
The effect of the temporary clos
ing of Ely banks upon the industrial
and commercial situation in this dis
trict should not carry anything what
ever of more importance than the in
convenience which will naturally b
suffered. AS near as can be gathere'
from market and press dispatches
the financial situation is clearing, |,
the east and it may be that by tn
end of this week such relief will b.
afforded as will enable general re
turn to normal or near normal bank
ing conditions, which will enable re
sumption of business on the old basis
Above all it is to be remembered il
this district that it's banks are goo,
for dollar for dollar, cent for cent
and that it is merely matter o
hriaf Inconvenience bncauSp of ina
bility to get at their funds or to casl
checks, that the public confronts
that and absolutely nothing more.