Click image to open full size in new tab
Article Text
# REASON WHY THE BANKS
# HAVE CLOSED FOR
# A WEEK
SOME consternation has been caused by the closing of the banks of the state for the week. It has been reported that it is because of the financial stringency precipitated by the San Francisco disaster. That such is not the case, however, it is hardly nece ar y to say.
"If it were not for the fact that the Nevada banks were temporarily closed down," said a prominent banker, "th re would be such a flood of Calnorn checks against them that in spite of the immense specie reserve now in the vauits there would be no tiding the difficulty. Not even the Bank of Englan i could pay all the checks from California that would be presented for collection.
"There is no financial panic possible," he continued. "The San Francisco banks cannot for a time get at their specie and resume business. But the money f those institutions amounting to $1,000,000,000, is safe in the several vaults, ready for oirculation when the accounts can be opened up and a pine board founl somewhere in San Francisco over whi.h to transact business. At present this i impossible and Nevada, being the nearest state and Rano its metropolis, it's but natural that here wou'd be wher the demands would come.
'On the other hand, there is n) disposition to further cripple our stricke neighbors, and Nevada banks at the enl of the week will readily encorse San Francisco vouchers and hold them fo collection. The endorsement will be a guarantee that the paper is good ad in the meantime the banks of the m-tropolis will be opening up and getting ready for business.
"The fact that the United States government is sending out $15,000,000 to th First National Bank, its deposito y, is evidence of the confidence that may be placed in the future of that city. The largest banking houses throughout the country are doing likewise and so are private capita ists. This matter is mer-ly a temporary difficulty soon to be fo:-gotten, but in the meantime the Nevad banks are bound to protest themselv s and their depositors for whom they have advantageously placed their money in good and interest earning securities.
"The financial situation is sensitive o all shocks, and the San Francisco calamity has temporarily affected the banis throughout the world."
