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NYE & ORMSBY COUNTY BANK SUSPENDS OPERATIONS Business is Suspended Voluntarily and the Institution Will Immediately Proceed to Liquidate Liabilities--Affairs of Bank in Excellent Condition. When the Nye and Ormsby County ing statement in regard to the bank: "Owing to the stringency of the bank opened its doors for business money market the bank found it imyesterday morning, early depositors possible to secure the necessary were met with the information that actual coin. To do so, it would have no deposits would be received nor been necessary to sacrifice the securwould depositors be allowed to withities held by the bank, which would have resulted in the financial ruin of draw their accounts as business had certain debtors, and eventually prove been suspended voluntarily and the a serious loss to the depositors and bank would immediately proceed to to the community in general. In orliquidate their liabilities. The doors der to fully protect the depositors it of the institution were not closed was deemed best that the bank reduring the day and all callers were ceive no further deposits, and put all given the same information. This depositors on the same footing by reannouncement did not create the fusing at the present time to pay any. Aurry and excitement which was In this way all assets of the bank are caused when the bank closed in Occonserved for all depositors. The tober, 1907, and every one received the information in a cool matter of bank is solvent, its assets aggregate $1,600,000, while it owes its deposifact way and when the condition of tors only $300,000. When the finanaffairs had been explained, all stated cial stringency occurred in 1907 the their belief of receiving 100 cents on bank owed its depositors $3,500,000, the dollar on their deposits. and since October, 1907, the bank Even after the suspension had behas reduced this amount to $300,000. come well known around town it This fact itself should be a sufficient caused no run on the other two guarantee that every depositor will banks as had been predicted, and be paid in full; that, furthermore, only a few of the more timid deposistockholders will receive par value tors withdrew their accounts only to for their stock and a substantial surcome back later and deposit them plus will remain." once more. The branch institutions of the Nye When the bank closed over a year and Ormsby at Manhattan, Wonder ago, the officials stated to the deposiand Reno, were placed on the same tors that all would be paid dollar for basis as the Tonopah bank and liquidollar and this promise has been dation will start at all the banks as nearly made good for the last paysoon as possible. The officials of the ment to the depositors fell due last bank stated that the suspension of Friday, and those who presented business was done solely for the bentheir notes were paid. efit of the depositors and debtors for The securities held by the instihad the bank called in their loans tution are gilt edge and the assurity large losses would have resulted to that the bank will pay the depositors the debtors and many excellent sein full is regarded by the business curities would have been sacrificed to men of this town that the bank is meet the call. solvent. Several other banking ofThe condition of the bank in reficials stated that the liquidation gard to the assets and liabilities, acwould be completed inside of several cording to the officials, shows that months, for according to their knowiedge, the affairs were in first class the assets are 75 per cent more than the deposits. When the bank susshape. pended at the start of the late panic Mr. McQuillan stated last night to they owed the depositors $3,500,000, a Bonanza representative that every and since that time $3,200,000 has stockholder in the bank would rebeen paid, leaving the sum of $300,ceive the original amount they had 000 due. With the assets placed at paid for their stock, and after this $1,600,000 the payment in full of had been paid there would be a handevery obligation is nearly assured. some dividend, and this would be done without the embarrassment of a James J. McQuillan, vice president of the institution, made the followsingle creditor of the bank.
