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MILLIONS IN CASH SENT MIAMI BANKS
Strength of Institutions Shown As Reserves Are Received As Deposits Gain. Continued from Page 1 which caused temporary excitement, we have satisfied every demand, and we have on hand and in transit sufficient funds to continue do 80," James H. Gilman, president of the Bank of Bay said. Ability of the Southern Bank to pay all its depositors was expressed in words of confidence by hundreds of depositors who appeared in front of the bank's closed doors yesterday to read the In statment by E. Lummus. president, he said that numerous rumors, and the sending of anonymous large withdrawels. As soon as the situation was found out he requested Mr. Amos and the deputy governor of the federal reserve bank at Atlanta to come to Miami. In the interests of bank depositors was decided that it would be better to turn the bank over to the state banking department. Mr. Amos yesterday called on Miamians to keep their heads and not let rumors cause them to hurt the banks and the community "Even though the banks might withstand run of excited depositors, their fináncial structures would be weakened," he said. "Our action was in the interests of depositors and for their own On the advice of Mr. Amos, who feared run would their closing, the Bank and the Bank of Allapattah did not open for business. H. H. Pounds, president of the Citizens Bank has been ill recently. V. W. T. Mahannah, cashier, said that statement as to the bank's liquidation plan would be forthcoming in a few days as soon as details worked out with the state banking department. "We closed as precautionary to proteat all our depositors, and expect to pay them in full," he said. F. D. Felt, vice president of the Bank of Allapattah, called attention to the excellent of the bank but stated that on the advice of Mr. Amos officers decided it would be better to stay closed and protect all depositors than to chance disastrous run. had no run and our bank is in excellent condition,' he said. "As as plans have been worked out by Mr. Amos, we will make an of our Intentions, expecting to pay all depositors in full.' Deposits in the Bank of Coral Gables were 33 per cent in excess of withdrawals. This information is contained in statement given to The Herald last night by Telfair Knight, president of the bank. Mr. Knight stated that he was very gratified to report the fact that the deposits were so greatly in excess of withdrawals, as evidencing the confidence that the people of Coral Gables have in the bank. Mr. Knight announced that the Bank of Coral Gables has made adequate for sufficient cash reserve to cover all demands which might be made upon the bank "Northern bankers at present visiting Coral Gables on matters of great importance to that city have expressed their entire confidence in the future of Coral Miami and greater Miami," said Mr. Knight, who added that they viewed the present financial flurry as purely temporary in character and no economic effect whatever upon the future of the city. Increased deposits were noted by officers of the Third National Bank and South Florida Trust Company, they said Small lines of depositors' formed in the banks 'in the morning to draw their money, but the movement was was said. The Morris Plan Bank invoked Its 30day notice of withdrawal rule, but had no appreciable demand, F. D. Felt, president, said. Mayor E. G. Sewell issued the following "This is an awfully good time for the Miami people to keep their heads and not act foolish. "Banks are operated in the interest of the people to facilitate the handling of funds the danger of loss by robbery. It also great protection from bandits who stop at nothing so long as they have an idea they can get money. "Banks have a great expense in keeping your accounts and providing facilities for handling your funds, hence is necessar for them to keep part of the funds which they have on deposit loaned out and drawing interest. "It is my opinion that Miami has today some of the strongest banks in the United States and it is very unfair to these banks for their customers to go into frenzy and line up by the hundreds and try to draw out their funds all at once. It might be good idea for the people who are doing this to stop and reflect few minutes on fairness, and ask themselves the question if they are being fair to the banks and the community. regret very much the necessity for the taking over the Southern Bank and Trust Company.
However, I believe that this bank will be re-organized an early date, but if necessary liquidate its af. fairs believe the depositors will receive their money in full. There were number of brought on which worked against the interests of the Southern Bank and Trust Company believe that the public as has the utmost confidence in J. E. Lummus, president of this "The City National Bank as now organized is owned and controlled by very strong financial institutions. "The and First National Banks have in business here over 25 years and weathered many a storm, including the panic of 1907. They passed the trouble brought about by the Manley Bank System of Atlanta, which had many in Florida and they weathered the hurricane season of 1926 and the attending difficulties They have the strongest New York connections possible These banks have been for their conservative policies and sound banking principles am now amazed to note that a lot of otherwise sensible people would get excited and line up in front of the paying tellers as they did yesterday "The larger business firms of Miami are making their deposits in these banks as usual. My firm deposited in the Bank of Bay Biscayne yesterday .000. We will make another deposit today of business and propose making daily deposits of all funds available. We are doing this as we have the utmost confidence in these banks and in the ability of the men operating them. The city of Miami has on deposit about $400,000 the Bank & Trust Company nearly all amply protected by Liberty bonds, treasury certificates, and listed securities, Griffin, city finance dlrector, said. The city also has $5,000 on deposit the Citizens Bank protected by Liberty Bonds of the value of $5,000. Several hundred persons deposited funds and opened new with the Miami Postal Savings system in the post office, the gaining more than $48,000 during the day, R. Valliere, assistant postmaster, said. As quickly as the funds were taken in, they were re-deposited in the First National and City National banks, he said. The Postal Savings one of the largest in the country, maintains a balance of more than $1,000.000 in the First National Bank, Mr. Valliere Quarterly statements as of December 31, call, showed the Southern Bank to have deposits $5,138,112 the Citizens Bank, $149, 480.55 and the Bank of Allapattah, $103,387.25. With deposit approximating $770,000. Dade County was one of the largest of the Southern Bank & Trust Company, Hugh Peters, chairman of the county commission, explained The exact amount of the deposit was not known, he said, but at the close January the county had $769,000 in the bank The present deposit is either several thousand more, or several thousand dollars less than this amount, Mr. Peters said. A total of $615,000 worth of liberty bonds and $100,000 worth of Coral Gables municipal securities are held by the county as security for the deposit. The deposit included the county payroll account, road and several other funds. Salary payments, Mr. Peters said, will not be delayed by the bank's closing Funds in other banks will be drawn upon, he said. don't think that the closing of the Southern Bank & Trust Company will cause any to county road work or on the Seventyninth street causeway The board has the utmost confidence in J. E.
