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WESTERN DISPATCHES [SPECIAL TO THE SILVER STATE.] THE VERY LATEST. SAN FRANCISCO, August 27 10 A. M. We are experiencing a real sharp but probably short-lived financial panic. There is less excitement this morning among the crowds on California and Montgomery streets, owing to the fact that banking and stock business is at a stand still. The Stock Exchange remains closed to prevent further depression in values of stocks, and the officers of the National Gold Bank and Trust Company gives formal notice that their business will be discontinudd temporarily owing to the panic and a scarcity of coin, offering at the same time assets to all of their depositors who desire them. The Savings Banks are open but reserve to themselves the by-law privilege. The depositors are being paid over the counter at the Hiberma-the largest of them. Some of the banks determined to remain closed to-Gay. Among those now with doors shut is Merchant's Exchange, Bank of London & San Francisco, and Bank of San Francisco are having slight runs. The Savings Banks are paying out deposits of less than one hundred dollars. Following observations are gleaned from a mass of floating rumors in print and otherwise, and will be found near the facts: The Bank of California has during two years past been in collision with one or more of the stock combinations, and prejudicial reports relative to its condition have been circulated from time to time, which, however, have been generally discredited as outgivings of speculators and desperate politicians. It is admitted on the other hand that the bank has been advancing sums of money on mining and manufacturing enterprises a little aside from legitimate banking. There has been a steady draia of coin to the East and Europe for some months, to which has recently been added an unusually heavy demand for payments on the wheat and wool crops. This of itself could have been gotten along with but for the manipulations of the stock brokers, who in their frantic efforts to depress prices began to hoard money. The Bank of California paid two millions at 2:20 yesterday. Some large checks were presented, one of them said to be for $300,000. On representations being made that it was impossible to count out so large a sum that night, payment was insisted on, and after hasty deliberation it was concluded to stop business. Flood & O'Brien, the great holders and manipulators of the Consolidated Virginia, Ophir, California, and all the Comstock mines with whom the bank has heretofore been in collision, deny that the run on the bank was in any way promoted by them and the latter emphasised his denials by stating that he had forborne to draw $200,000 of deposits in order not to cripple the bank.
