Arizona republican. [volume] (Phoenix, Ariz.) 1890-1930, 1921-07-02

Today this possibility can be
looked upon as a nightmare which
will never come true, for the bank
doors are open for business and the
depositors and stockholders are wear
ing the smile that won't come off.
Much Due C. w. Fairfield
In the minds of many who have
been in close touch with the situation.
the credit for having consumma ted
the readjustment of the banks at
fairs and its reorganization rests
largely on the shoulders of a young
man known as Charles W. Fairfield,
state auditor and superintendent of
banks. Fairfield is chary about ac
cepting this credit. however. Others
evolved the plan." he says, Il merely
used my official position and in
fluence to put it through"
Among those who know the inside,
however. there are not many who
will agree with this modest viewpoint
on the part of the state bank superin-
tendent. Regardless of whose mind
it was that worked out the details of
organization, this much is known and
admitted, that Mr.. Fairfield devoted
tireless energy and his whole soul to
the task of bringing together num-
Der of conflicting interests.
Three general groups had to be
brought into line; the depositors, the
banks from which the Central had
borrowed money, and the nine bond
ing houses whie'. had guaranteed the
deposits of the state, county and city.
In each of these groups there was d.
versity of opinion as to what step
should be taken. These difficulties
had to be ironed out first and then
the difficulties which arose in har-
monizing the interests and getting
them to agree to the general plan of
reorganization.
Works Incessantly
All of this took time. energy and
determination. Fairfield was sparing
of none. For three long discouraging
months he worked necessarily toward
the goal, struggling lis way through
a mass of circumstances so disheart-
ening that more than once the friends
of the bank declared 1T can't be
DONE" But it was done, and that is
why the states bank superintendent
is being showered with congratula-
tions today. His work in this con-
nection is generally regarded as one
of the most constructive that has
ever been put over by any state Of
fetal since statehood.
If anyone doubts for minute the
disaster which would have been
brought about by a receivership let
them hear Fairfield's analysis of the
situation.
THE Central bank owed to its five
corresponding creditor banks approx
imateiy $525,060. The Central had
given as collateral in its regular
course of banking a trifle over $1,-
O00, 900 10 these banks as security In
the event of a receivership the five
creditor banks would have foreclosed
on the notes and other collateral. and
would have bought it up for the
amount of their claims of $685. 1000
Subtract this from the $1,000, 900 and
you have s475.000 as representing the
loss through forced collection to the
depositors. The banks deposits out
side of public funds was approxi-
mately 81 900, 900. Pocketing the loss
caused by forced liquidation and pay
ing over the heavy burden of costs
of a receivership, would have left
very little for the depositors. I am
satisfied that they would not have
received over 10 cents or Is cents or
the dollar.
Cooperation Did II
aside from its effect on the bank
and its depositors and stockholders
wholesale foreclosure proceedings
would have plastered half OF the Salt
River valley over with mortgages and
| judgments. bringing hardship to many
others. The reimbursement allows q
| longer time for individual borrowers
from the bank to meet their obliga-
tions. All values are now at low ebb
but with return sof normal values
every person who has made loans viii
1 10 nj n l.