Extra, Extra: Is It the End for Newspapers?

SAN FRANCISCO, Feb. 27, 2009— -- The headlines are grim. Financial trouble is pushing newspapers, which have been an American staple in small towns and major cities for more than 400 years, to the brink.

From the Rocky Mountain News in Denver, Colo., which published its last edition today, to the San Francisco Chronicle, which is in danger of stopping the presses, trouble is brewing.

Watch "World News with Charles Gibson" TONIGHT at 6:30 p.m. E.T. for the full report.

The 144-year-old, Hearst-owned San Francisco paper has survived fire and earthquakes but may not survive in the current economic climate. It has had to cut a third of its newsroom in the past two years and is desperately seeking a financial savior.

"I don't think I'm safe, and I don't think anyone in that newsroom feels that they're safe," said C.W. Nevius, columnist for the San Francisco Chronicle.

Even the American Society of Newspaper Editors today announced it has canceled its 2009 convention, a first since World War II, concluding that "the challenges editors face at their newspapers demand their full attention."

Journalists say that the loss of newspapers not only hurts the industry but also the communities they serve.

"Newspapers are the glue that can hold a community together, whether it's a big city or a small town," said Walter Isaacson, CEO of the nonprofit Aspen Institute and a former editor of Time magazine. "The type of journalism that a daily newspaper does is indispensable to holding people accountable in the town, to bringing us together as communities and to giving us the information needed to help a democracy."

Daily newspapers have been the public's eyes and ears, exposing corruption and scams. Isaacson notes that they are especially necessary in these times of economic turmoil to provide accountability.

"We are in a situation with the huge stimulus package that's going to be spent all across this nation and a big financial crisis and banking crisis," he said. "And what we need is good, trained journalists who can play the role of watchdog."

VOTE: Does Your Local Newspaper Matter To You? Share Your Opinion With ABCNews.com.

In Connecticut, the New Britain Herald's investigation of urban blight forced local officials to take action. A month ago, the paper was on the verge of shutting its doors but was rescued by an influx of cash from a local entrepreneur.

"I think that you lose a lot of content that you can't get anywhere else," says Marc Levy, editor of the New Britain Herald.

Levy suggested that much local coverage will be lost, everything from an obituary to a Boy Scout honor, "so much of this stuff doesn't appear anywhere else and will never appear anywhere else."