Evening star., 1933-10-15
BANK SHOWDOWN
|. IS SEEN IN NEVADA
Hundreds of Thousands May
Be Released as Result
of Action.
BY REGAR REINHART.
special r1sp.tch to The Star,

special Dv9patch 70 Tne btaf.
RENO, New, October ia show
down on the Nevada banking situation
appears on the horizon and. whichever
way the question Of reopening or set
tling the Wingfield Bank affair is de-
cided, there seems to be some indica-
ton that part Of the hundreds of thou
sands of dollars tied up for year will
be released, in part. in few weeks.
The controller Of the currency ruled
last week that non-consenting de-
positors in the two national banks Of
the chain could not be compelled to
take stock in new bank reorganized
out Of the closed institutions, including
nine State banks. On the heels Of this
ruling Judge Clark j. Guild has held
depositors in State banks are affected
likewise, and held unconstitutional a
section Of the new State bank law
which would have made acceptance OF
stock more or less compulsory.
Now the proponents Of the bank re-
organization plan are coming forward
with a plan for organization Of a new
bank, financed to a large degree by
California capital, which would take
over the liquid assets of the closed
Wingfeld banks.
Desire Liquidation.
In the meantime opponents Of the
reorganization are behind an effort to
have the closed banks liquidated,
through a conservator or a receiver ap-
pointed by the court and not under
control Of the present State Banking
Department.
1t means, in the opinion of those
who have followed the situation. that
the State District Court will do some
thing soon that will mean the release
of much money that has been tied up
year. Any appreciable amount OF
money released to depositors at this
time will be important to Nevada. It
may mean a revival of business.
H. A. Agee, Nevada director for the
Regional Agricultural Credit Corpora
ton, says stock loans of million dol
lars or more are being held up by the
bank situation. The closed banks are
unable to release subordinate loans on
cattle, sheep and ranches for use as
collateral. Agee says loans have been
approved to the extent Of about
81 100000
Many Promised Jobs.
There is an undercurrent of dissatis-
faction In Democratic circles through
out the State, particularly among labor
and Legion members Of the party, who
declare promises made before and just
after election year ago, to provide
jobs for deserving Democrats among
these organizations. have not been kept.
AS a result the Nevada congressional
delegation Is being beSieged with tele-
grams asking why. Many applicants
for post Office jobs, who say they have
had promises, cannot understand why
they have not been appointed.
Mining continues to be the principal
hope OF Nevada and many properties
which have been idle for years are
being opened for work on low-grade
gold ores. The old Comstock district
seems to be the most live camp, but
it is filled with promoters and many
are wary Of what will be the outcome.
The Comstock abounds with low-grade
ore and occasionally pocket of high
grade is found, and this revives hopes
for many that the camp may come
back. Gold ore and concentrates are
being shipped from this and other
camps, and at good profit, under
the new Federal ruling permitting its
sale for import.
In Goldfield a leaser recently found
shoot of rich ore, but so far 1t is
just pocket. 1t is some distance from
the scene of the high-grade discoveries
in that camp 25 years ago.