Daily Arizona silver belt., 1907-11-23
LOCAL FINANCIAL SITUATION.

LOCAL FINANCIAL SITUATION,
 While the present financial situation is blamed largely on New York fin aneiers who, as has been shown, have the prosperity of the entire country in the palms of the hands, the local sit nation is in a large measure due to in- eidents that date back some time before Wall street put on the screws. Over two months ago rumor, started through design or ignorance, became current on the streets, resulting in a run on the Globe National bank, which was checked after a few days. But in that short time there had been a rather severe drain on the available cash re- sources of the bank. At the time the rumor was put in circulation the bank was in splendid condition and the cash fer had left the city on his vacation. No publicity was given the matter and in a few days it had been completely dissipated. Then came the sudden locking of the New York bank vaults against the rest of the country and the banking business was abruptly para lyzed resulting in the organization of clearing house associations throughout the country. This followed runs started on some of the largest banks of New York City in which millions were with drawn by frenzied depositors. There had been rottenness exposed in a few financial institutions and con fidenee in even the strongest banks was either weakened or completely shattered. Quicker than any epi- demic the fever of distrust spread and other banks were forced to suspend, not being able to realize on their se- eurities on such abruptly preeipitated notice. Several of these banks have subsequently, resumed operations.
 When Globe was struck by the fnan. eial stringeney, rumors which were thought to have been dead and buried we're revived and the bank which was first the partial victim of distorted pub lie opinion was the first to suffer That  another should follow so soon after is not remarkable, as with the vault doors of its correspondents closed against it, rendering it helpless, it was in no po- sition to withstand the same exagger- ated feeling, fostered by unfounded ru- mors and further distorted and enlarged under the microscope of constantly growing distrust that could not be checked.
 This is the end of bank suspensions in Globe for with two victims this un- seen but crushingly felt force must be content. The three banks remaining in NPNiatioh hdNC btutnltu lO NtIN great extent by the withdrawals from the institutions which were forced to suspend and their resources are many times greater than they were previous to the present stringency. All of them are under territorial control and the bank examiner who is directly in charge of them, receiving daily reports in per son, states that they are absolutely sound and able to meet every obli- gation. The examiner has no local in terests and his statement must be taken at its full worth Regarding the two suspended banks, of which cireum- stances have placed him in control, he has given out no statements but it is our sincere belief that those who have entrusted their funds to their keeping will have little cause for regret when their affairs are finally brought out of the chaotic condition into which unfor- seen events have thrown them.