The Goldfield news. [volume] (Goldfield, Nev.) 1904-1911, 1907-11-02
THE OUTLOOK FRIGHTENING

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FINANCIAL situation in aoldnsld is lot nearly so bad a it appeared
to be at this time last week.. During the interim a banking holiday has
been in effect pursuant to a proclamation of the governor iastM Monday OK
tending the enforced holiday a week longer; meanwhile thu banks have
had a chance TO check up their affairs and make a trn for ready cash, in n
tcipaton of reopening
As a result, the announcement is made that the State Bank and Trust com
and the Nye and ormsby County banks will resume business n the trmina-
ton Of the holiday. Whether this prediction win be fulfilled a. to the date Of
opening remains to be seen but that the banks are solvent and viii resume 1t
ONT date rot remote is fully established din the public mind The job 8 Cook
q O.. bank opened ON Monday last and has continued to do business, with money
for every depositor. Its deposits have been much gsatert than witndrawa
The progress of events throughout the country the past week has fully sus-
local banks vas not due Il local conditions and hat tn was not nerens
with ooldhed- At the time that statement was being put into print, New York
cash. Chicago olow soon ai"f; Denve ros0i'eo " JUG SAM .Ape1A
the banking houses agreed among themselves to pay n o n depositor more than
into line, and the governor of California declared a banking holiday to prevent
disaster to III banks Of that state.
The ountry has had a period of unprecedented prosperity which gave rset to an
imitation lin business and in prices With business swinging al0ns under a ire
mendous impetus banks loaned money right and left The stock markets II the
.. sr sos nsS ops ON sscurites All these in prices. Finally when the gov
eminent began to attack the integrity and legality of some IF the larger railroad
and industrial corporations. stocks commenced IL decline. decline continued
with ar increasing ratio, until slambang. and the bottom was out. The banks
had millions tied up in these stocks and securities, and they could not turn them
into money and depoitors were clamorous. The condition became acute. New
York was in panic. The trouble in Wall street. naturally affected every other
banking center in HI country, Tor their reserves were in New York banks; and
through the trouble in the lesser centers' the smalIr communities were affected.
San Francisco banks were in close relation with New York; eoldhad and other
Nevada communities had there reserves in San Francisco. When New York
had always carried Large reserves or aoldhsld' and tne Danks OF tnsp place ever
failed t. get all the casht they required on securities in the San Francisco market
Francisco market with their securities there was nothing doing Not because
of thu quality or thu quantity o. III security onsr.b but San Francisco did not
have the cash-not even the cash for her own business rs ws subsequently
shown in the closing Of the California banks through the expedent of a banking
holiday. Money could NOT be raised on Nevada state paper, W there is no
in h Union whose paper is better than Nevadas Nevada is nc; a Dor
over. She is NOT in debt; in fact this state is a loaner of money. She is losner
to the amount Of thousands and thousands If dollars to the imperial state OF
Massachusetts, for instance, in whose school bonds Nevada las invested to heavy
extent.
The business # the country has been sailing along in n airship n unlimited
credit We are 10 N earth again and back to a cash basis. but find all at once,
that there is not enough cash in the country to go around It's like the
qunt that is too small to cover al thu sleepers sin bed Pulled back and forth
it always leaves some If the seepers in the cold. Tho money blanket is too
small for the country.
There is relief in sight The United States treasury is pouring millions Of
money into banking channels. Gold in other millions Is coming from abroad; the
government has given orders for the San Francisco mint % cdn still other mil
lions from Nevada and California gold ores Fortunately Nevada has the ore and
it is ready fr the mine. 0cIdfeld has a million dollars worth Of pre- at the
SAMPLERS; he has another million on the dumps, and severalo other millions in the
mines standing or broken in h workings.
Conditions are Tot going to right themselves al once II may " several
months before the country again gets squarey or itsf feet but In the meantime
Goldheld will improve Times will begin % get better from the day the banks
open. Already there is evidence Of a turn affairs and within a few months
re viii be swinging along at a good pace, not the pace that kills, as W witnessed
at n period, but at a good steady gait that gets there all the same.