The Goldfield news. [volume] (Goldfield, Nev.) 1904-1911, 1910-04-09
The Eureka Bank Being Dragged Into Politics

" re may now expect to see all the Republican papers of the state,
W. following the lead of the Reno Gazette, lay the blame for the
" failure of the Eureka county bank upon Governor Dickerson
and the state banking board, the object being, of course, to discredit
the Democratic administration, the governor and the members of the
board. An effort will be made to so magnify the incident as to make
of it a campaign issue, and the people should be advised in advance.
The present board of bank commissioners are in no wise or in no de-
gree responsible for the Eureka County bank failure.
The new banking law went into effect; now about a year ago, and
the first meeting of the banking board was April IA. The new law
under which the board was working made various radical changes in
methods and requirements, and it became apparent at once that 1T
would take time for the banks of the state to adjust themselves to the
new law. Some of the banks-even those which were doing the larg
est business and supposedly the strongest, were in bad condition,
owing to too liberal management, and the laxity of the old law and the
ineffciency Of the bank examiners department. The board, con-
STRUNG the banking law rs an act not only to protect depositors, but
in 10 doing also to help the banks themselves, found it advisable to
proceed cautiously but deal firmly with the deinquents. Reports We're
at once called for and carefully examined and analysed. On the board
were two bankers beside the bank examiner. The condition of the
banks of Nevada as disclosed by these reports was such, that if the
board had acted under the strict letter of the new banking law, it
would have had to close about 80 per cent of the state banks then
doing business. This, in addition to the depressed condition of affairs
in Nevada due to the general panic, would have been a calamity moth
ing short of a crime, and it would have brought down upon the heads
If the banking board just ana overwhelming public condemnation.
Imperative instructions were at once sent to the delinquent banks
and the bank examiner proceeded Immediately to cheek them up. 1t
is not necessary or advisable to go into detail and name these banks
for with the time and assistance given them by the banking board
they gradually adjusted their affairs to conform to the new law and
placed themselves on a sound footing and are now doing a prosperous
business. There were four banks, however, that were in a particular
L. bad way. One of these was a comparatively large bank-the Flu
reka County bank, a bank at Manhattan and two in the 5ullfrog dis
trict. The latter two were closed, the banking board taking charge
Within n days after the Pioneer bank went into the hands of the
banking board, every deposition had been paid dollar for dollar-a
record never before made in this state. BY agreement with deposi-
tors the buifrog Bank & Trust company appointed the state bank
examiner as trustee, rather than have an-expensive receivership; one
dividend of 80 13 per cent was paid to depositors within four months,
and arrangements had been made with stockholders to pay in a large
assessment which will realize as much more. The banking board a
few weeks ago decided to force the Manhattan bank into liquidation