Click image to open full size in new tab
Article Text
A SERIES OF RUNS BROUGHT FLORIDA BANKS TO THE WALL
After Twenty-One Months of Continued Losses, the Fruit Fly Scare Finally Forced the Financial Crash in the State.
(By The Stor's Own Service.) IAMI, FLA., Sept. 14.-Florida banks, beginning with M the waning of the boom in 1926, consistently lost $100,000 an hour every banking business hour for twenty-one consecutive months, and gave up in actual cash 400 million dollars in the last four years. July 17. fifteen of these institutions broke under the strain and turned over their affairs to the state comptroller, Ernest Amos. Combined capitalization of the fifteen suspended banks was $3,630,000, deposits of more than 22½ million dollars, and assets of nearly 30 million The Citizens Bank and Trust Company of Tampa, parent for ten smaller banks in West Florida, surrendered to its depositors % million dollars in one day. It was one of the severest bank runs in Florida's
Lose $800,000 in Week. The State Bank of Orlando and Trust Company, which closed August 5. gave up million dollars out of total of 416 million in deposits in ninety days, $800,000 of which was withdrawn in the last week of its existence. The closing of this bank, one of Florida's outstanding financial institutions, followed consistent withdrawals of large accounts and was not precipitated by general run. It simply failed to open for business on Monday The Volusia County Bank of Deland. home of John B. Stetson university, fifteen miles west of Daytona Beach, and city with normal population of 15,000 to 20,000, obtained $700,000 in new funds early in the summer with which to carry on its operations, records at the comptroller's office further show. Under ordinary conditions. the amount would have been entirely adequate to support the institution through any reasonable amount of depression in the off-season. However. this reserve soon was wiped out and the bank closed its doors along wtih fourteen others in the mad rush July 17. Federal Reserve Aids. The complete breakdown of the entire financial structure of the state was perhaps only averted by the prompt measures taken by the Federal Reserve Board of Atlanta in forwarding 5 million dollars to Florida to bolster up cash positions of its member banks, and the establshment by the general board of two mil- lion dollar depositories in the state for use in case of emergency. For every effect there must be cause and should be of interest to go back and trace some of the causes which combined to break down the confidence of the people and create in their minds the idea that all banks were unsafe, resulting in widespread capitulations. It is human nature to become panicky when personal savings are endangered. The run on a Brooklyn bank August 15, caused by carbuncle on the neck of its president, is evidence of that idiosyncrasy. Reports prevailed the president had died from the effects of the boil and that a run on his bank followed his death. The rumor of run started a real run, and even the presence of the "dead" president at the head of the withdrawal line could not subdue the excitement. More than million dollars in cash was hurriedly withdrawn. Postal Savings Run. In 1926 report was spread about "dark town" in West Palm Beach, Fla., that the postal savings division of the United States government was going to fail. A wild run was started in the postoffice. Washington postal savings officials assured them the entire financial structure of the government was behind its postal savings but this had no effect upon them. In time the run played out. About the same time. reports were current from all parts of the state of severe bank runs, followed by numerous suspensions. Newspapers in many instances declined to publish any information regarding failures elsewhere in the state for fear of alarming their own citizenry. and for the added protection of their local institutions Nevertheless, the news was transported. one way or another, and the panic proved to be highly contagious. In almost every instance bank failures came in clusters, on the swell of a wave of unrest and broken faith which repeatedly swept the state. Came lull: business men met together and proclaimed prosperity and "good times just ahead. Fruit Fly Brings Depression. Then came the Mediterranean fruit fly, new and unheralded experience. As soon as the quarantine was announced and the lid clamped down, this enthusiasm turned into pessimism; prosperity, at least psychologically. became depression. The cycle had made another revolution and on July 17 a new wave of panic, of far
INDIANS SLAY A MEXICAN EXPLORING AN ANCIENT TEMPLE.
Seeking Hidden Gold in the Ruins of old Native Building. Party Is Attacked in the Night. greater force and proportions than DIE IN A TREASURE HUNT before, swept the state. Quiet withdrawals of large accounts were rumored Central and South Florida, and those withdrawals fed the flames of distrust into excited runs. Likewise, the failure of one bank was the signal for additional runs, and before these flames could be quenched, Florida had experienced oen of the worst financial scares in the nation's history. These suspensions, Amos says, were caused by combination of developBy JACK STARR-HUNT. ments, chief of which was the feeling (City of Mezico Correspondent of The Star.) of distrust and panic resulting from continued business depression, and THE CITY OF MEXICO, Sept 14.-A climaxed by the appearance of the tale of a treasure hunt in an ancient fruit fly. Among the contributing temple in Oaxaca that ended tragicfactors, in addition to the fly and ally is related in El Universal, Mexico general unrest, the comptroller points City newspaper. out, are hang-over real estate loans by banks from the boom period, and Four City of Mexico men, Jesus 'propaganda, probably originated by Rodriguez, Damaso Lopez, Humberto selfish interests and circulated for Diaz and Manuel Franco, after gainseveral weeks, about the banking sit- ing from the government, uation in South Florida.' searched for legendary wealth supVictim of Complex. posed hidden in the Tepescolula temple in the village with the same name That Florida has been the victim in the state of Oaxaca. of 'psychological complex" is adThe natives were hostile to them mitted by more than one responsible from the first, refusing to sell the official, and on which virtually all treasure hunters as much as & loaf the blame for the extensive bank failof bread. One night & band of Inures laid. A statement issued by the board of directors of the Citizens dians attacked their camp, killing Bank at Tampa. its % mil- Senor Franco and wounding his sislion dollar run and suspension of op- ter, who was with the party. eration said: The treasure. if any, is still conThe present situation is due to un- cealed in the ancient temple. wise and continued adverse conditions gossip following the appearance MORE ACCIDENTS IN KANSAS. the Mediterranean fruit which was responsible for feeling unrest and Labor Commission Announces Comfear developed on the part of the peoparative Figures. ple. At Tallahassee, the comptroller TOPEKA BUREAU placed most of the blame on the THE KANSAS CITY STAR people for lack of confidence in their (By Member The Staff.) own institutions, adding that, "SamTOPEKA, Sept. 14.-There were 1,488 son-like, they have brought down the industrial accidents in Kansas in Autemples upon themselves.' gust, 52 more than in July, according If Florida being shaken down to to the monthly bulletin today of G. solid foundation, as its senior UnitClay Baker. chairman of the commised States senator, Duncan Fletcher, sion on labor and industry. Every observes the situation, the rock bot employer in the state is required to tom must have been reached. and report regularly the accidents in inwill be found when the present dustrial institutions which cause any financial chaos is cleared. injury to workers. There were 1,441 And if, as every circumstance tends accidents which resulted in tempoto prove, that Florida's misfortunes rary total disability, 39 in permanent are purely mythical. public confidence total or part disability. and 8 remust be rebuilt on the foundation sulted fatally Of such accidents 159 that has survived.
In the Class of '68 at M. U. Own COLUMBIA, Mo., Sept. 14.-The oldest University of Missouri alumnus to accept an invitation to attend the institution's annual homecoming here October 26 is G. M. Horne of St Louis. Graduated from the university in 1868, Mr. Horne is now 87 years old. He formerly lived at Arrow Rock and served with General Sterling Price during the Civil War. A Stock Show at Newtown, Mo. The Star's Own County Stock Show here next Thursday. Friday and Saturday will bring together great agricultural exhibit from Sullivan, Putnam and Mercer counties. were sustained by minors, 157 resulting in temporary total disability. in permanent partial disability, and in death. There was an increase of 52 in the total number of accidents throughout Kansas over the month of July, with corresponding increase of 56 of those accidents resulting temporary total disability, an increase of over last month in permanent part disability, but decrease of five in the accidents resulting fatally. Of the accidents to minors there was an increase of 14 in the total number reported, which is an increase of 12 over last month in those classed as temporary total disabilities, also an increase of 2 in the permanent partial disabilities There was fatality listed among the accidents to minors in each month.
