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DAILY ARIZONA SILVER BELT
Saturday, November 23, 1 9071
ARIZONA SILVER BELT
DAILY AND WEEKLY
Published each morning oxcept Monday.
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LOCAL FINANCIAL SITUATION.
Whilo tho present financial situation
is blamed largely on New York fin
anciers who, as has been shown, have
tho prosperity of tho entire country in
tho palms of tho hands, the local sit
uation is in a largo measure duo to in
cidents that date back somo timo boforo
"Wall stroot put on tho scrows. Over
two mouths ago a rumor, started
through design or ignorance, becamo
current on tho streets, resulting in n
run on tho Globo National bank, which
was checked aftor a fow days. But in
that short time thero had been a rathor
sovero drain on tho availablo cash re
sources of tho bank. At tho timo tho
rumor was put in circulation tho bank
was in splendid condition and the cash-
vIer-had left the city on his vacation.
, No publicity was given tho mattor and
in a fow days it had been completely
dissipated. Then camo tho sudden
locking of tho New York bank vaults
against tho rest of the country and tho
banking business was abruptly para
lyzed resulting in tho organization of
clearing house associations throughout
tho country. This followed runs started
on somo of the largest banks of Now
York City in which 'millions were with
drawn by frenzied depositors. Thero
had been rottenness exposed in a
few financial institutions and con
fidence in even tho strongest banks
was either weakened or completely
shattered. Quicker than any epi
demic tho fever of distrust spread
and other banks wcro forced to suspend,
not being ablo to rcalizo on their so
curities on such abruptly precipitated
notice. Several of theso banks havo
subsequently resumed operations.
When Globo was struck by tho finan
cial stringency, rumors which wero
thought to havo been dead and buried
were revived and the bank which was
first the partial victim of distorted pub
lic opinion was tho first to suffer. That
another should follow so soon after is
not remarkable, as with tho vault doors
of its correspondents closed against it,
rendering it helpless, it was in no po
sition to withstand tho sumo exagger
ated feeling, fostered by unfounded ru
mors and further distorted and enlarged
under the microscope of a constantly
growing distrust that could not bo
This is the end of bank suspensions
in Globo for with two victims this un
seen but crushingly felt force must bo
content. Tho three banks remaining in
operation havo benefited to a very
great extent by the withdrawals from
tho institutions which wcro forced to
suspend and their resources are many
times greater than they wcro previous
to tho prosent stringency. All of them
aro under territorial control and tho
bank examiner who is directly in chargo
of thorn, receiving daily reports in per
son, states that they aro absolutely
sound and ablo to meet every obli
gation. Tho examiner has no local in
terests and his statement must bo taken
at its full worth. Regarding the two
suspended banks, of which circum
stances havo placed hirn in control, he
has given out no statements but it is
our sincere belief that thoso who havo
entrusted their funds to their keeping
will havo littlo causo for regret when
gtheir affairs aro finally brought out of
JPtho chaotic condition into which unfor--r
seen events ha.vo thrown them.
OLOBE STILL A LIVE ONE
Tho suspension of one of tho two
national banks of Globo shortly after
tho beginning of tho present financial
stringency followed so soon by similar
action on tho part of tho other has
severely crippled tho business of this
city but thero is littlo occasion to bo
diovo .that Globo .has suffered an ir
rcparablo loss. Whilo tho mines of
tho district aro operating with undi
minished forces and tho big smelter
is turning out its daily quota of copper
bullion, with every company mooting
monthly its payroll, Glob'ojwill romain
a strong, substantial city. Although
probably in somewhat less quantities,
money will circulate just as freely and
thero will bo but slight decreaso in
tho volumo of business, and then only
until conditions becomo normal.
Tho strength of Globo in tho past has
been in tho fact that it has not beon
a "corporation" mining camp, although
its success has been largely duo to
largo mining companies which, however,
havo stuck to mining and smelting,
leaving tho commercial business of tho
THE RECENT PANIC WAS STARTED
(Saturday Evening Post)
During the lato crisis soveral banks
and ono lnrgo trust company closed
their doors. As a result thero was not
only alarm among tho depositors of
theso various institutions, but among
tho depositors of a good many other
banks and trust companies who wore
not fnmiliar with tho details of tho
banking business. In many quarters
much surprise was displayed when somo
of tho banks posted notices reading llko
This Bank is solvent; but is closed
temporarily becauso it is unable
to sccuro cash for tho depositors.
Tho question therefore nroso: "How
can a bank bo solvent and yet bo un
able to pay its depositors on demand?"
An effort will, bo mado to answer this
question, becauso it involves a knowl
edge of tho first principles of banking,
and this knowlcdgo should bo part of
tho education of every investor.
What Banks Aro
In tho first place, what is a bank?
Not everybody stops to realize how
universal and how necessary a bank is.
Banks stand for'stability, for credit and
for business. Although papor monoy
was used in China as long ago as ono
thousand years boforo Christ, and bills
of exchango wero employed in auciont
Rome, it was not until the twelfth cen
tury, and in Venice, that tho first bank
was started. Modorn banking began
with tho establishment of tho Bank of
England, in 1GI9.
Banking simply means dealing in
money or papors that roprcsont monoy.
Through the medium of banking, men
and firms thousands of miles apart may
do business without tho actual oxchango
of cash. Thoro aro four kinds of banks:
Commercial banks, which include
both national and stato banks.
Savings banks, which are, in tho
main, philanthropic trusts for the
Loan jyid trust companies, which
combine tho functions of a bank with
thoso of trusteo and executor.
Privato banks, which resemble a pri
vate business in their conduct.
Tho commercial banks aro tho most
numerous. A national bank is ono
Which contains tho word national in its
namo and which is governed by what
is known as tho National Banking Act.
As such, it is under tho supervision of
tho' United States government, which
may send an examiner in at any timo
to cxamino its accounts. A national
bank, by depositing government bonds
with tho secretary of tho treasury, may
issue its own notes that is, bills bear
ing the name of the bank.
Commercial banks, other than na
tional, aro called stato banks becauso
they aro under tho supervision of tho
authorities of tho stato in which they
happen to bo located. Every stato has
its own banking laws. Somo aro more
stringent than others. Each state, too,
has a banking commissioner who has
the right to know the condition of the
banks, and who may take chargo o'f
them if ho thinks such a step is neces
sary. Commercial banks havo capital
stock like corporations.
Thero aro two kinds of savings banks,
mutual and stock savings banks. A
mutual savings bank is one that is con
ducted solely for tho benefit of tho do-1
positors. Thero is no capital stock to
bo bought and sold or to increaso or
decreaso in value.
A stock savings bank, on tho other
hand, is liko any commercial bank in.
that it is conducted primarily to make
money for the stockholders as well asi
for tho depositors. Many of them do
a general banking business. In most
states tho investments of savings banks
aro regulated by lawi
Trust companies rcccivo deposits and
lend monoy liko banks. But thoy do
more things than tho banks, because
tho banking laws authorize them to net
as trustees and executors, to underwrite
bond issues and to perform certain le
A privato bank is conducted by a
Drivato individual or firm. It receives
and lends money; acts as agent for local
or foreign corporations; deals in for
eign exchange, and underwrites issues
Theso banks could not do business
without deposits, nnd sinco, deposits
form such a necessary part of tho busi
ness and mean, at tho samo time, so
much to tho people who own them, both
stato and rational governments havo
sought to put somo safeguards about
their use. In tho caso of national banks
it is required that they kep twenty-fivo
per cent of thoir deposits on hand in
actual legal tender and specie (paper
money nnd coin.) This is called tho
legal reserve. Tho usual reserve rcquir-
city to individuals. As in ordinary
lines of business, tho companies havo
loft tho banking business to men not
connected with tho corporations and
to theso men is largely duo tho marvel
ous growth of tho city during tho last
few years. Assistance to any worthy
entorpriso that would make a bettor and
greater Globo has ncvor boon withhold
by tho banks and nlthough this may re
flect on them ns conservative bankers,
it docs not reflect on them as men.
Whilo somo bitterness may bo 'felt
toward thoso who conducted tho sus
pended institutions whilo tho subject
is so uppermost in tho minds of many,
it is generally realized that conditions
over which thoy had no control wero
responsible nnd no blnmo or reproach
falls on them personally. "Whilo u tho
present timo disappointment or fears
of permanent losses of savings way
havo possession of them, tho depositors
of tho banks aro far from facing actual
want or suffering and it is our sincore
hopo that thoy will never suffer that
which has bowed down thoso to whom
tho past fow weeks havo been fraught
with anguish and heart breakings in
finitely worse than a merely monetary
ed by states is 15 per cent, it being
argued that a rcsorvo of this amount is
amnio for all normal demands. Tho
laws restricting tho Tcsorvo of trust
company aro not so Btrlngont. Hoiico
tho stato of affairs which mado tho ro-
cont complication in New York possi
ble. A bank is a business institution for
tho purpose of making money. It is
liko a drug storo or a groeory. Instead
of selling medicino or canned goods, it
uses money ns its commodity. Most of
tho monoy that it uses is doposltcd by
its depositors. It is a Bimplo proposition
when stripped down to its main facts;
if tho bank pays you 3 or 4 por cent
interest on your monoy, it must employ
that same monoy so that it will earn
more than is paid for tho uso of it.
Tho bank must pay tho expenses of
running tho business, which includes
cost of building in which it is located,
tho salaries of its employees; nnd thero
must bo some profit for tho pcoplo who
havo bought its capital stock. Ilcnco
tho problom of tho bnnkcrs is to em
play tho bank's funds'so that thoy will
tarn tho largest possiblo amount of
money. Thus it hnppons that tho do
posits, instoad of roposing peacefully in
the vaults of tho bank, aro out in tho
busy world doing things. Thoy may bo
helping othor banks, building railroads,
developing cities and communities,
qrocting buildings, promoting business
or aiding commorco and credit in some
Depositors Money Tiod Up
You can now understand why a bank
should be, willing to keop only as much
actual rcsorvo on hand ns tho law re
quires, for tho cash on hnnd in the
vaults is not working and is not enrn
ing. This naturally leads to tho situ
ation which grow out of tho recent Wall
street panic, when n perfectly solvent
bank or trust company was unablo to
moot tho demands of tho depositors.
This is why: Tho bank or trust com
pany, in its desiro to have its monoy
earn as much moro money as possible,
invested, for oxample, that money in
high class securities, or .loaned tho
monoy on collateral consisting of gilt
edge stocks nnd bonds. It did not
reckon on a big, almost unanimous, de
mand on tho part of tho depositors for
tho immediato return of their deposits.
It happened that for some timo tho
stock market had been getting worse
and worse nnd prices wore constantly
going down. Even the highest-class se
curities wore affected. Monoy then be
camo scarce. Peoplo wanted to get
hold of their monoy. All of a sudden it
developed that a great many peoplo
wanted to get deposits out, nnd actual
cash was scarce. Por tho banks to sell
their largo blocks of high-class securi
ties at the prevailing markot prices
would mean to sacrifico them. Yet at
any normnl timo theso securities would
yield much moro money than tho insti
Thus it happens that whilo a bank
or trust company may own nmplo se
curities and havo ample resources it
cannot get hold of the actual cash with
out a great sacrifice, and it closes its
doors until market conditions aro nor
mal and tho pcoplo return to a natural
stato of confidence.
Ono result of tho New York panic has
been tho organization of a movemont
to safeguard tho deposits in tho trust
companies. Sinco tho trust companies
had a freer hand than tho banks in tho
conduct of their business, they took
bigger risks and sometimes jeopardized
tho money of tho people. Ono plan is
to make them members of tho clearing
house association. Thus they would get
the same unity of action in timo of trou
blo that is enjoyed by tho banks, which
stand together, each ono helping the
other. A run on ono of them means a
run on all tho banks,of tho association.
During the recent crisis tho banks camo
to tho aid of tho trust companies, be
cause a big failuro among tho trust
companies, after tho closing of- the
Knickerbocker Trust company, would
have precipitated a disaster.
J. L. Alexander went to tho Giln
valley yesterday on a business mission.
J. L. Gibson of tho Arizona National
is in the city from Crowloy on business.
W. P. Richardson, a Phoenix attor
ney, is transacting legal business in the
Dr. J. L. Parker, mino physician in
tho Pinto district, came in last evening
to spend a few days.
William Sparks, tho former ranger,
camo in last night from tho San Carlos
agency to transact business.
C. D. Reppy, right of way agent for
tho Gila Valley, Globo & Northern, ar
rived in tho city last evening from Saf
ford to spend a few days in tho city.
W. P. Ingram, auditor for tho Ran
dolph lines, will return to Tucson this
morning after spending scvornl weeks
horo checking up tho accounts of tho
D. W. Wickorsham, head of tho Sol-omon-Wicker8ham
camo up from Safford last ovening, ac
companied by Maury Gridor, his man
ager at Safford.
WILL MEET NEXT YEAR
IN SAN FRANCISCO
MUSKOGEE, Okla., November 22.
Tho Trans-Mississippi congress will
meet next' year in San Francisco.
A Good Show
Tho Mysterious Wayno is mystifying
ovoryono nt tho Iris this week.
Always Was Sick
When a man says ho always was sick
troubled with a cough that lasted all
winter whnt would you think if ho
should say ho never was sick sinco using
Ballard's Horehound Syrup. Such a
Mr. J. C. Clark, Denver, Colo., writes:
"For years I was troubled with a sovero
cough that would last all winter. This
cough loft mo in a misorablo condition.
I tried Ballard's Horehound Syrup nnd
havo not had a sick day sinco. That'
what it did
for mo." Sold by Palace
OUR FIRST ANNUAL THANKSGIVING SALE
Opens in a blaze of bowildering bargains this morning. Cut prices pre
vail throughout this great homo furnishing house. Money may bo tight,
but tho Thanksgiving tnlo prices will un
tie tho strings to your pockotbooks, nnd
mako you glad that you invested. No
such prices were over quoted on reliable
furnituro nnd genoral furnishings. Wo
specialize today on articles that should
satisfy your Thanksgiving wants. Don't
miss this opportunity to furnish your houso
for tho holiday season.
Iu this department our china shop
wo tako great pride. It is tho biggest
thing of the kind in Arizona. No larger
or better assortment of dishes in the south
west. Many pretty and exclusive patterns
nnd a largo open stock to select from.
Full sot3 or sini'lo pieces, just as you
may desire. Tho prices nre of tho kind that will mako you givo thanks.
Everything in glassware, including bar glasses such as beer and whisky.
Theso elegant goods aro all in tho big Thunksgiving salo now on. This
is au opportunity of a lifetime.
NOTHING TO PAY FOR BUT THE GOODS
Out of tho high-priced rent district; no gaudy demonstration; no exp:
sivo overtures to tho public; straight, plain business methods prcva-j
..., . .. ...... .o .... uuU always
has been to sco how much real value
can give you for your dollar. And ts
'sale means the saving of many dollars t0
McNeil patrons. It means perfect sai
faction, as better and more reliable gooh
cannot bo found in tho country. We 0
vito comparison and Solicit a share of y3 ,r
AFTER DINNER CHAIRS
What is moro pleasant to nnticipat? af
tcr tho Thanksgiving dinner than a com
fortable rocking chair? We can sujpn
this demand in a moro satisfactory J?
than any houso in Arizona. Drop into ti.:s
department and you'll conclude that v.e
purchased for tho entiro territory. iL, k
ors of ovcry description and kind from tho massive leather upholst r
oak to tho' plain little sowing chairs. They come in wickers, poliMic j
oak and mission styles, and aro quoted at prices never before named o
tho history of Globe. See them.
RANGES AND STOVES
In no rotail storo under tho shining-sun is
thoro a more varied or representative stock
of ranges and stoves shown than right under
our roof. As Thnnksgiving timo approaches
tho housewife's intorest naturally centers on
a good range. Goodness extends from tho
lowest priced to tho highest $20 to $175
nnd wo haven't a utovo in tho houso that is
not FULTA' GUARANTEED. Cooking stoves
range from $7 nnd up.
Another Thanksgiving necessity and a
joy forever in every home. No dining room
is complete without ono or the other, Wc aro
particularly proud of this line, as it is not
excelled in any store in the territory. Beau
tiful things in solid oaks. Sideboards and
buffets, actualy worth $55, in this salo $15,
and on up.
CHINA CLOSETS. A lino that wil surely
surprise you, in rich wpods, cabinet work and
general designing, $35 and up.
The queen of this department is tho alwacg
convenient Kitchen Cabinet, a piece of fu
nituro that no good housekeeper cares to tx
without. It affords in neat and compact f r0
a placo for everything and in the matter of
saving, will pay for itself in a year. Incx
pensive, invaluable. Wo carry all kinih of
Kitchen Tables and our lino of Kitchen Safes
is equally as complete. All of theso gods
in tho anniversary Thanksgiving special Ea;e
Brass Beds. Tho most handsomo
lino in tho city. Rich, massive,
elegant. Prices on this lino range
from $20.00 to $S5.00.
J. P. McNEIL
Iron Beds. By far the largest
assortment in tho city. EnamclcJ
in all the popular tints. We have
a lino of good beds from $3 up,
Make Your Wants Known Here. Yea Will Get Satisfactory Results.
Advertisement under this head 10 cents per line toe Unt Insertion ncd 0 cents per line each
subsequent Insertion. Ilr tno month. M. 00 oer line Jood tnserteU'Ior less than -.0 cents. AU
ads under this head must oe paid 'for in acn nncc Discount to regular advertisers.
The Proclamation Has
.- . - Now
WANTED A compotcnt
tho Dominion hotel.
WANTED Boom or tent furnished fori
batching. Address 11. D., Silver Belt. '
WANTED Reliable holp Is furnished
promptly free of chargo at tho Em-!
ployment Agency, 230 North Broad.
SITUATION WANTED Female sten
ographer, holding certificate, accurate
and steady would liko position in
Globe. Address .Alice Mason, San
Carlos, caro P. Jones.
FOE EENT Furnished front room
with bath. Inquiro Mrs. h. Trevil-J
liarr, East Cedar street. i
FOE EENT Furnished rooms witn
privilege of light housekeeping. In
quiro 320 East Oak.
FI7ENISHED rooms for rent at No. 179
! South Pino street, in rear of Domin
i FOE EENT Ten-room houso; lavatory
in every room; just completed, in
quire of J. Maurcl, box 221.
WANTED Fivo-room houso, partly
furnished. Small family, no children.
Stato location and price. Address A,
Silver Bolt office.
FOE EENT Three-room house. Apply
Julo Maurcl, box 221, or Cement
, FOE EENT Furnished front room with
bath, $10.00 per month. 277 N. High
FOE EENT Dcslrablo furnished room.
Mrs. L. Q. Coombs, Ballground.
FOE SENT Nicely furnished, very
comfortablo room, opposite Dominion
hotel. ' ..
FOE EENT Ono largo furnished room
for light housekeeping. Mrs. Geo. R.
Hill, Old Ballground.
FOE SALE Fivo-room furnished res
idence, Nob Hill. Box 1103.
-Old newspapers at this
-Two room houso partly
Inquiro nt 3C2 S. Hill
FOE SALE A few coed, small second
hand heating stoves. Inquiro 320
East Qak strcot.
FOE SALE Fresh
milch cow. 413 S.
FOE EENT Furnished front room for
lady or gentleman,
539 South Hill
LOST AND FOUND
fqrnishcd. East Oak.
-Modern six room house,
Close in. Inquiro at 320
rOUND Pair of spectacles, steel
frame. Prove property and pay for
this ad. at Silver Belt office.
FOB. EENT Eoom in tho Postofflce
building. Apply nt Silver Belt office.
LOST Pair of silver framo spectacles,
initials H. A. U. X. on nose-piece.
Howard for return to this office.
Satisfaction our motto. Wo have
the best equipped paint store in the
city. Van Wagonen, next door to the
postoffire. Givo us a call.
A Good Show
Tho Mysterious Wayno is mystifying
everyone nt tho Iris this week.
Tho largest stock of ovorcoats in
Globe. Stein-Bloch and Alfred Benja
min's at Lantin's.
A Wonderful Trick
Sco Wayne the Wiza'rd at tho Iris,
Also now moving pictures and illus
B &,j j
A pure, Grape
cream or tartar
baking powder Makes
Food More Delicious and Whole
some No Alum No Phosphates
Caro Must bo Taken to Keop Alum
.Dr. Alonzo Clark: "A eubttanco (alum) which can derange the
tomach should not be tolerated in baking powder."
Prof. S. W. Johnson, Yale College: "I regard their (alum and
soluble alumina ealts) introduction into baking
powder as most dangerous to health."
The Thanksgiving Feast
WE ARE now booking orders f;r
the nation's feast of thanks A
full carload of the Valley's chaucst
young birds, personally selected and fat
tened especially for us for this feict
day, is en route. Shipment consists of
TUBKEYS AND CHICKENS
Orders also havo been placed for will
ducks and other game that can legally
In bulk and can, a special Thanksgiving
shipment, and you can count on then
being strictly fine and fresh.
SPECIAL CUTS OF BEEF
Veal and mutton, and everything is
the meat line. Nice line of early win
ter green vegetables.
You Will Have Much to Be Thankful For
- If You Place Your Orders With
The Independent Market
Annual Sale of Beautiful
SNOWY TABLE LINENS
T WAS an early Pilgrim custom, after a bountiful harvest, to
offer thanks to tho Supremo Being, and partake of a royal feast.
This beautiful custom has ever since been carried out by a
thoughtful and appreciative people. Thanksgiving this year, No
vember 28, will bo tho most glorious In tho history of this won
derful nation. It is every housekeeper's pride that her Thanksgiving fes
tive board shall be spotless and snowy, and with this in mind, we have
collected tho choicest patterns In beautiful table linens produced by the
most famous linen mills in the world. Ireland, Scotland, Germany
and England aro contribuators to this brilliant display of housekeepers'
Thanksgiving Sale Starts This Morning
Lowest Prices of tho Year
this Linen Opportunity.
Will Prevail. You Can't Afford to Miss
Old Dominion Commercial Co.
YOU KNOW THE PLACE
Clearing House Scrip, Checks or Cash All Look Alike to Us.
Lon Sanders, Proprietor
Hidl-Class ImnnvtAfl nnrl
Wines and Liquors Domestic Cigars J
iiiwiih ii tmmmmm
Buy your dolls and teddy bears
while the assortment is large.
10 per cent off on everything
our front room.
?T" "ft. " &