Tonopah daily bonanza. [volume] (Tonopah, Nev.) 1906-1929, 1907-10-30
BANK EXAMINER
Miller IS HERE
MA. iSoK iNTO rHE STATE
nANk AM Trust tslNl.
nANY TO-DAY.

HAHANNA aANfNNA# WV sNAAAN RtAtAA IN
aminer. arrived from Goldncld last
night. and win leave Tor Manhattan
this morning His business mere is
to examine the affairs of the State
Bank and Trust Company. as he has
already done In Goldfield and In Car
son. He will put In few hours this
morning in the local institution be-
fore going to Manhattan. and expects
to finish his work with both houses
tonight and be able to leave for Car
son this evening or in the morning
As to what he has discovered.
Major Miller has nothing to say at
this time. 1t is his duty to report
his findings to the Bank Commission
ers, and it will be up to them as to
whether the banks resume, or wheth-
er they apply for a receiver Mean
time there is no change in the situa-
ton here, but it is said that active
operations are going on in Carson.
The San Francisco banks have
adopted the same tactics as the East
ern financial institutions, in the mat
ter of working on clearing house GER
tificate basis. The following telegram
has been sent out to all the cores
pondents, and practically the same
thing has been going the rounds of
the United States:
All principal clearing house asso-
Citations in the United States have
gone on a clearing house basis, and
will not ship money to correspon-
dents. We suggest that you organize
locally for protection. Stamp your
drafts on us payable only through
San Francisco clearing house"
This method of doing business
means that there can be no runs on
the San Francisco banks or on the
banks of any other city where the
system is in vogue. 1t was started
by the New York banks, and the am
cunt of money paid out even to de-
positors will be limited at the judg-
ment of the banks. For instance, if
a man had fifty thousand dollars in
the bank, and he wanted it for the
purpose of withdrawing it from cir
culation, he would get instead a
clearing house certificate for the
amount, which would be just as good
as the money with the exception that
he would be compelled to wait for
the money until such time as the
money stringency was passed.
When it is said that the banks
shall use their Judgment as to pay
ing out money in lieu of the certifi-
Gates, this means that where it is
known that the money is for general
circulation, it will be paid. Where it
is intended to pay it out for labor
there shall be no question as to the
money
The suggestion from the clearing
! houses of the big cities to their cor
respondents in the smaller towns,
might be good one to put into eff
| feet in the precent situation. The
banks which now are open will have
to comply with the methods in vogue
in San Francisco. The reason of this
is obvious If man is engaged in
business in Tonopah, and he has his
backing in San Francisco, and he
wants money from his hacker. if the
latter is a depoSitor in any of the
banks there, as he naturally would
be, the bank has the right to refuse
to ship the money at the request of
the depositOr. The bank probably
would send the money if it were
shown, that it was going to be put
into general circulation, otherwise it
would send a clearing house certifi-
cate. 1t is the same thing as the
handling of scrip.
How long this method may remain
in practice no one will venture to say.
1t may last thirty days, or sixty days,
or it may be discontinued in ten days.
but from the best advices that can
be had something of the kind will
have to be done here.
Senator Nixon will be here today
coming over from Goldfield. There
will, perhaps, be no significance to
his visit, as the Tonopah Banking
/ Corporation is on the best possible
footing, and things are running as
smoothly as could be expected with
that bank and the Nevada National
| opened.
/ There is nothing new for publica-
1 ton in the affairs of the Nye and
Ormsby bank as far as Tonopah is
concerned. The storm center seems
now to be in Reno. A private wire
was received here yesterday morn
ing which stated that the Reno
branch had been closed by the order
| of the Bank Commissioners, as the
law would not permit one of the
1 IL