The Alaska citizen., 1911-03-27
Phone 262 Phone
SCRIP

A Hse. ago 'hc Citizen advanced inc -arG,-ri.u 'la, scrip on the Wa-n.as.vn-AIlska bank. to the ex- tent at r. per cent. be issued in aa.toipa.!.u f the dividend which i. Is expected will be declared in the Cuussc oi a few months Since that time tho grand jury has recom- m,Ha,l rAo plan 10 the court. but it .- I., likely that any further steps will tr 'ah n unless meeting of H.. G,.o-trur- is held and the plan ,Eno.sh'y Ar,-hed out, as it cer. 'aiuly i~ ur mater in which tie oylr, can take the initiative
 The scrip plan was presented to IL. grand jury by Receiver Flaw Ltus. auI We understand tha, this leu.iyman'- idea was to issue scrip [. the fuu cX-eut cf the deposits on hand la ,lc bank A none of this scrip could command its face value until ~d.h 'ime as the last indebted ness f rlo 'aDk had been canceled, ir seems to Is that such an issue could do nothing less than complete ly demoraliae the business of the camp Pri..- would have to be put u9 by -Ae merchants because they cogd uJ. scI t.r a liar worth only sixty nga.- what rh,y had been in inc n.l., e .cll.us for d liar worth one hundred cents. and those who were ra- handling any of the scrip would sG,r To rhe same extent as those Hua were All kinds of spec ula'ion would be indulged in with the scrip and iss yalue would at all ,.mos lo prob'ema'ic.
 F ,av-. 'ut- plan was given certain a..um- ot publicity the whole question f issuing scrip has been condemned by some who have nor examined the Citizens plan carefully 1T has been broadly in- rimatoI .lar rha scheme is one of Captain Baruettc's to afford him an opportunity to buy up the debts of the bank at a very much reduced cost And ii is a fact that it is possible today for anyone interested to buy many of the deposit accounts at little more than a half of their valuc and such a condition would prevail 10 the same extent if Re ceiyer Hawkins scrip idea were put inro practice.
 On -hc other hand there is noth- ing which would so surely prevent Captain Barnette or anyone else in- terested from buying the deposit ac counts below their value as the is sue of scrip along the lines sug- gcs,cd by rhe Citizen. This be- cause rhe owner of a deposit ac- count. if he has no immediate need for the money, is not going to make /. any sacrifices on it if he sees ahead l a reasonable expectancy of getting 100 cents Cn the dollar. If he can get r. Der cent. now, to carry him along until the next dividend is de-
  cent in anticipation of the next dividend. he will be able to pay his way and will not have to sell his l account to Barnette, his agents or anyone else who may be speculating | in the accounts.
 And if, as so many are insisting, | Captain Barnette is in position to clear off a considerable portion of | his indebtedness to the bank at the | present time if he so willed, there | is nothing that will bring him to time quicker than the knowledge that il is no use waiting in the | hope of being able to buy the ac- counts at cut rates. The captain | is under an obligation of more than | one hundred dollars per day inter- est, and it does not seem reasonable | that he will defer any payments he | is in position to make. It might, | however, be very reasonably argued | that so long as the accounts are purchasable for sixty cents cn the | dollar he would be inclined 10 be a | purchaser if he had the money, and | would not be disposed to expedite | the payment of dividends and there by boost the values of the accounts. |
 Tcday there are s74S,000 of depos It's in the bank and the other debts | bring the liabilities up to s900000 | To offset this on the other side of the ledger there are notes to the extent of s5O1 ,OO0; the Gold Bar stock, rated at S341 900; bank prop erty to the value of S40,000, and tie s101 900 that Is tied up. This means | that the assets of the bank would exceed the debts of the bank by sS3,OO0, if they could all be realized on But of the s5O1 900 in notes 1t is not likely that much mere than half will be collected. AS to the