The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-11-01
NEVADA SHUTS
BANKS; ORDERS
debt HOLIDAY
Dozen Institutions Closed,
Others Urged by State
to Follow Suit.
EVEN DIVORCES SUFFER
Crash of Livestock Prices
Causes Unprecedented
Relief Action.
BY GEORGE d. CRISSEY
United Press STAFF Correspondent

RENO, New. Nov. l.-At least
twelve of Nevadas twenty-five
banks were closed today under
two-week banking holiday" pro-
claimed by Lieutenant Governor
Morley Griswold.
Ed j. Seaborn, state bank exam
liner, issued a statement urging all
banks to abide by Griswold's proc
lamation.
The twelve institutions which did
not open for business were the
"Wingfield banks" with deposits ex-
ceeding $170OO,00O, and controlled by
George Wingfield, Republican ma
tional committeeman from Nevada.
Among those hit by lack of funds
were many members of the large di-
vorce colony here.
Closing of the banks may, they
fear, force poStponement of the le-
gal severance of marital bonds, I'M
less they can borrow from some of
the ready money gambling houses
some of them patronize.
Governor Seeks Funds
Governor Fred Balzar was in
Washington attempting to obtain
Reconstruction Finance Corporation
funds for banks of the state.
Collapse of livestock prices was
blamed for the unprecedented proc
! lamation
The sharp decline in agricultural
prices three years ago and their
failure to recover left bankers with
most of their funds tied up in loans
to livestock men.
Nevada is a vast grazing area, de-
voted largely to sheep and cattle.
Citizens were taken unaware by
the proclamation, which Griswold
issued late Monday night, acting in
the absence of Governor Balzar.
Many were without cash on hand
and faced the likelihood of resort
ing to barter or scrip to carry on
their daily business before the
moratorium" ends on Nov. IA.
GriSwolA said the proclamation
also provided two-week morator-
ium on the payment of all debts,
except taxes.
Some Banks Stay Open \
Reno, largest city in the state,
had only one of it's three banks
open, the Reno National bank. Two
banks in Las Vegas announced they
would remain open.
Since Wingf1eld is the acknowl-
edged financial leader of the state,
it was believed ma ority of the
banks in which he has no interest
would follow his lead and accept the
moratorium.
Griswold told of the difficulties
that led to his action, believed to
be the first of it's kind in the United
States. Bankers had loaned as high
as So head on sheep when prices
were at their top, Griswold said.
The animals now bring not more
than $3.50 a head.
THE situation has at last been
reached where the conditions no
longer can be met by ordinary
banking methods without reorgan-
ization," GriSwold said. 1T has
become necessary to call upon the
public to understand the problem
and to unite in an effort to solve it,
Pledges All Resources
Wingf1eld, a native of Arkansas,
whose colorful career carried him
from a job as faro dealer to the
financial and political leadership of
Nevada, issued statement decIar-
ing his ntire resources were avail
able to restore the stability of his
/ banks.
Gambling halls and speakeasies,
both of which carry large reserves
of silver dollars, were about the
only business houses with cash on
hand to conduct their business dur
ing the two weeks moratorium.
1t was considered probable they
might become community bankers
during the period.
Nearly all divorce seekers in Reno
were affected by the bank closing.
Most of them live at the River
side hotel during their six-weeks
residence here, and deposit their
funds at the Riverside bank, in the
hotel building. The bank. one of
the two Wingfield banks here, was
closed.
Loans Not Repaid
Wingfield said the unique situa-
ton was brought about by the fail
ure of banks to receive the $780,
600 in farm loans which usually
are repaid at this season.
Wingf1eld was an early arrival
when the gold mining boom hit
Goldfield. and he opened a gam
bling hall at the same time the late
Tex Richard was active there.
In 1906. Wingfield bought an in
terest in gold mine, and made
his first million dollars.
His wealth grew until at one time
he was reputed to be worth $780,
100000. He also gained prestige in
politics.