The San Francisco Stock Exchange, which was the principal market for
Manhattan mining shares, was compelled to discontinue business for over
two months. Brokers and transfer companies lost their records, and the
Coast's property and money loss was so appalling that no more money was
forthcoming from that direction for mining enterprises. Every bank in
Nevada closed down, just as every California bank did, the Governors of
both States declaring a series of legal holidays to enable the
financial institutions to gain time. Nevada banks, as a rule, had
cleared through San Francisco banks, and practically all of Nevada's
cash was tied up by the catastrophe.
The Sullivan Trust Company faced a crisis. I had decided it was good
business to lend support to Jumping Jack in the stock market when the
Manhattan boom began to relax from its first tension, and had
accumulated several hundred thousand shares at an average of 35 cents.
The Trust company had only $8,000 in gold in its vaults on the day of
the 'quake. Moneys deposited in bank were not available. Of the $8,000
in gold coin, $6,500 was paid two days after the earthquake to the
Wells-Fargo Express Company for an automobile which was in transit at
the time, and for which Wells-Fargo demanded the coin. It was
impossible to hypothecate mining securities of any description in
Nevada or San Francisco. With the Sullivan Trust Company's funds tied
up in closed-up banks, and with an unsalable line of securities in its
vaults, it was "up against it."
For a period it looked as if we must go to the wall. For two months we
eked out a bare subsistence by the direct sale of Manhattan securities
at reduced prices to the Eastern brokers. This purchasing power came
largely from brokers who were "short" of stocks to the public on
commitments made at a much higher range of prices and needed the actual
certificates for deliveries.
It took the Nevada banks and the San Francisco Stock Exchange more than
sixty days to rehabilitate themselves. No sooner did the San Francisco
Stock Exchange open for business than it became possible for the
Sullivan Trust Company to borrow some much needed cash on Manhattan
securities, of which it had a plethora. Through members of the San
Francisco Stock Exchange, it obtained in this way in the neighborhood
of $100,000. Goldfield banks supplied another $100,000 a little later
by the same process. Then the clouds rolled by.
FORTUNES THAT WERE MISSED
Soon the Mohawk of Goldfield began to give unerring indications of
being the wonderful treasure-house it has since proved to be. Hayes and
Monnette, who owned a lease on a small section of the property, had
struck high-grade ore and were producing at the rate of $3,000 per day.
A few weeks later it was reported that the output had increased to
$5,000 a day.
Public-domain text, read in full here on John Shaqi.
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