Tonopah bonanza. [volume] (Butler City [i.e. Butler], Nev.) 1901-1909, 1907-06-29
SUTRO'S VIEWS
ON SITUATION
LACK OF SUPPORT ONE OF REA-
SONS FOR THE PRESENT
MARKET

In an interview accorded one OIL
our reporters, Mr.. Sutro mas the fol-
lowing to say as to conditions now
existing on the market and as TO
conditions now existing in Tonopah.
1.-The market has fallen with a
~listless attitude, due to tightness OF
money, all over the United States; to
labor and political disturbances and
disclosures made as to methods pur-
sued by our leading financiers in
over capitalizing and watering the
most of our railroad and industrial
enterprises. Actual facts speak
louder than words, Notwithstanding
the fact that our mines are producing
more than ever, that they are getting
closer and closer to the dividend
paying basis. the stocks in our lead
ing properties show declines not at
all in keeping with their present
showings which on actual facts and
figures show better standing than
when stocks we're selling from 40 to
SO per cent higher than they are to-
day.
1.-THE cause is, OF course, n cry
tight money. The credit accorded
every one doing a legitimate broker
age business has been extremely len
lent. not accorded by banks to indi-
} viduals but accorded to every
2 because our bankers here believe in
our properties, believe in their in
| trinsic worth and merit and believe
in their ultimate immense production
y and dividend-paying abilities.
THE question now arises, what are
q we brokers to do today who have put
e our clients into these properties to
remedy the situation at hand
There has been in these camps
e no cooperation, no actual mutual
acknowledgements aggressive
ness. There has been no support
/ given our stocks by any of the lead
a ing fnanciers, bankers and private
capitalists. 1t has been a steady ac-
he emulation of money by these
ID wealthy capitalists VINO control our
D. banks and into whose hands the
e. millions of treasury funds of the
various companies have come and
who have had the privilege of loan
ng ing all these funds whom it in then
Judgment seemed best to do SO.
lie Credit has been extended mos'
de literally within safe limits, the re
10 serves in our banks today are wei
nd within good sound banking judgmen'
rs and probably based on what thes'
leading ananeiers consider absolute
re. ly safe.
lis, "The situation today is extremel.
IS abnormal. Did it ever appeal TO GU
he investors and our clients that it ma.
'ed not be in the power of these larg
operators to support the market
Where a man in ordinary times coui
borrow on frst-class security he no.
cannot. He cannot even borrow o
AID security, the market value OF whic
today would probably be better 81
cnrity than at any other time an
ell, ii these conditions exist and will kee
on existing how can We expect higf
out err stock prices?
lew There is no doubt, however,
ain my mind that time will remedy a
this. 1t will pemedy 1t because II
The amount of production now is mo-
the than it ever was. The physic
big condition of our mines today Is
was per cent better than it was WHIT
ship stocks were 40 per cent higher al
she when once the production Is distri
She uted; when once u grand prope
res, ties are turning out bullion, aetu
and coin of the realm, and when tt
last, same coin is distributed in the sha
and of dividends, the circulating mediu
s. will become larger, the actual &C
anne will be disbursed and then, and +
red, until then, will we have the glorio
lain DAYS of November last. Now thu
thin when this does take place will G
large operators declare these di
sion dends; will they distribute all t
but production in the shape of dividend
the my opinion is, they will. thi
a they mean right and all this adve
they criticism is unjust and unfair 8
but while it may seem hard at the pr
tiers, ent time circumstances and q
ings, business Judgment at present d
rake not permit of 1t.
wood, Therefore, | advise honestly
the eonscientiously, curtailment OF
, and penses, %privations not at all in Ike
2 left ing with our former methods; st
then attention to our investments
and strict attention to business and
the course of three months chan
many will take place that will astonish
went all. When once money conditi
in ease up our leading financiers
were bankers will give us all the as
0 nnni -. aaI v,Nnhs