Weekly independent. [volume] (Elko, Nev.) 1887-1914, 1910-04-15
THE EUREKA BANK BelNs
DRl6GED INTO POLITICS

&
lay the blame for the failure of the
Eureka County bank. upon Governor
Dickerson andIthe state banking
board, the object being. of course.
to discredit the democratic ad-
ministration, the governor and the
members of the board. An effort
will be made to so magnify the in
cident as to make of it a campaign
issue, and the people should be
advised in advance. The present
board of bank commissioners r in
no wise or in no degree 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 it
would take time for the banks of
the state to adjust themselves to the
new law. Some of the banks-even
those which we're doing the largest
business and supposedly the strongest
were in bad condition, owing to
too liberal management, land the
laxity of the old law and the in
efficiency of the bank examiners
department. The board, constituting
the banking law as al act not only
to protect depositors, but in so do
ing also to help the banks them
selves, found it advisable to proceed
cautiously but deal firmly with the
delinquents. Reports were at once
called for and carefully examined
and analysed. On the board were
two bankers beside the bank eX-
aminer. The condition of the
banks of Nevada as disclosed by
these reports vas such, that if the
board had acted under the strict
letter of the new banking law, it
would have had to close about so
per cent of the state banks then do
ing business. This, in addition to
the depressed condition of affairs in
Nevada due. to the general panic,
would have been a calamity nothing
short of a crime, and it would have
brought down upon the heads Of the
banking board just and overwhelm-
ing public condemnation. I'm
perative instructions were at once
sent to the delinquent banks and the
bank examiner proceeded immedia-
tely to check 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 particularly bad
way. One of these was a COM
paratively large bank-the Eureka
County bank, a bank at Manhattan
and two in the Bullfrog district.
The latter two were closed the bank
ing board taking charge. Within
n days after the Pioneer bank went
into the hands of the banking board,
every depositor had been paid dollar
for dollar-a record never before
made in this state. BY agreement
with ~depositors, the Bullfrog Bank
q Trust company appointed the
state bank examiner as trustee.
rather than have an expensive re-
ownership; one dividend of 33 1-S
per cent was paid to depositors with
in four months, and arrangements
had been made with stockholders to
pay in large assessment which will
realize as much more. The banking
board a few weeks ago decided to
force the Manhattan bank into
liquidation. This was a Smith bank.
The bank did not have the fund
necessary to pay depositors nor did
the Smiths. There were other
stockholders at Reno, and the board
made these stockholders furnish
$4,000 to the bank. The Man.
haitian bank was then forced into
liquidation and dollar for dollar was
paid every depositor.
The Eureka Coutny bank presented
amost difficult problem. The board
found that the deposits we're large,
saving deposits alone amounting to
over 5000, 900, and the aggregate