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THE LOCAL FINANCIAL SITUATION OLDFIELD is passing through the most trying period of her history. The times are such as try men's souls and call for wisdom and fortitude of G the highest type. Largely because of the financial upheaval of the East, which has been nothing short of a panic, a crisis has fallen upon Goldfield. Her banks are temporarily closed; her ore purchasing agencies refuse for a time to accept shipments, and as a result, several of the producing mines and leases have been obliged to shut down throwing hundreds of men out of employment. It is a condition that could scarcely have been foreseen and obviated; but, happily, it is also a condition that will soon pass away and with its passing, Goldfield will be upon a more solid foundation than ever before in her resplendent career. The panic in the East was felt in Goldfield quicker and with more force than most any other community in the west, if not the entire country. Goldfield is especially sensattive to eastern financial changes in that, dealing altogether in money, and most of that money from the East, any depression or any inflation at the money center is reflected at once in this camp. Money from the East buys our stocks and finances our mines; it is money from the East that keeps the miners at work and buys our ores. Consequently when there is any stringency in the East and interruption of the flow of money in our direction it is felt most sensibly in Goldfield. For several months the tightening of money matters in the East has been noticed in Goldfield. It has been evidenced more in the market for Goldfield and other Nevada stocks, perhaps, than in any other way. The East has always been a heavy purchaser of Nevada issues, especially of Nevada promotion stocks. The gradual but constant decline in the volume of eastern orders has been apparent for several months, and it was evident more and more as time went on, that investors had other uses for their money than that of buying mining stocks. The market for railroad and industrial securities was going to pieces and the whole financial east seemed headed for a cataract. In the meantime the money situation in Goldfield correspondingly tightened. Mine operators, brokers and promoters had their obligations previously assumed, to be met with the money which was not forthcoming from the accustomed sources. The banks, which had been lenient almost to the point of indescretion, began to shut down on loans and call in their contracts. They knew the situation better than the business public from which some complaint arose. But the sequel showed the banks were right. Finally the crash came in New York. The failure of the Heinze banks was closely followed by the great Knickerbocker Trust company and other banks of lesser magnitude, and the collapse of one or more of the colossal industrial institutions of the country. Call money on more than one day rose to 90 per cent and a general crash seemer inevitable. It was then the Goldfield banks acted, and not until then. Wednesday morning a notice of suspension was posted on the door of the Goldfield branch of the State Bank and Trust company. The bank closed at 10:30 a. m., shortly after having opened, on an order sent from the home bank at Carson City. The shock of the eastern panic was felt all over Nevada. The governor wisely proclaimed a banking holiday lasting three days and the John S. Cook bank and the local branch of the Nye and Ormsby County banks complied with the proclamation. So much, in part, for the causes leading up to the present financial situation in Goldfield. Now, let up analyze the situation and see how far Goldfield is responsible of the plight in which she finds herself. In the first place, the only bank in Goldfield that voluntarily suspended business and closed its doors before a holiday was proclaimed, was not a Goldfield bank at all, but one of numerous branches of an institution that had its headquarters in Carson City, from which place the order came closing all branches of the bank located in five different towns. It develops that the suspension of these banks was not due to any insolvency of the Goldfield bank, but must have rested with the other branch or some one of them; for the acting manager of the local branch of the State Bank and Trust company has publicly stated that the order to close came as a great surprise, as his bank, at least, was in a solvent condition. There had been no run upon this bank. The public had manifested not the least distrust, and so far as the public could see, the bank closed without any warrant. However this may be, the failure, if such it be, will not be a bad one. The home institution telegraphed the day after closing to have all accounts balanced and forwarded as it expected to be able to pay in full. So much for this bank. The only other bank on which there was considerable run, started by the closing of the local branch of the State Bank and Trust company, was another "foreign" institution and likewise a link in another chain of banks. This was the Nye and Ormsby county bank, with headquarters in Reno and branches in several towns throughout the state. The local branch of this bank withstood the run of Wednesday all right, and posted a notice that it would reopen on the termination of the bank holiday. This bank is believed to be solvent; but if it be not solvent and prepared to reopen at the time specified, it cannot be said that it was the local or Goldfield branch that pulled it down. The fact is this bank has made an enormous amount of money out of Goldfield. Now, as to the bank of John S. Cook & Co. This is practically the only home bank in Goldfield. True, it has two branches, one at Tonopah and one at Rhyolite; but the Goldfield bank is regarded as the home institution. This bank is as solid as Gibraltar. It has abundant money on hand to meet any emergency, probably two dollars for every one that would be called for in the most determined run. Behind the bank are two of the wealthiest men in the West, Senator Nixon and George Wingfield, both of whom announce that their private fortunes, if necessary, will be placed at the disposal of the bank, in order that no depositor suffer. This bank will reopen at the end of the bank holiday, and it is more than likely that two dollars will be deposited where one is withdrawn. It is thus evident that there is nothing the matter with Goldfield to cause a suspension of her banks, as the only purely local institution is sound and ready to resume business while the others are entangled with outside allances and are under suspicion in one case and suspension in the other. In the case of the former, it is asserted with confidence by the best posted, that it is solvent and will resume business when the other banks of the state reopen. For the other, the one closed, there is a well founded belief that when it liquidates or resumes business, it will be able to pay dollar for dollar. All in all, Goldfield can take much satisfaction out of the fact that her banking institutions, while passing through such a crisis, will emerge, probably, without the loss of a single dollar to a customer. This statement of facts reveals a condition that is creditable to Gold-
