BANKING PANIC IN TENNESSEE.

Press, Volume LXVI, Issue 20086, 15 November 1930, Page 15

BANKING PANIC IN TENNESSEE.

TWO BANKS CLOSE. GOVERNOR'S IMPEACHMENT DEMANDED. HUGE DEFICIT IN FUNDS; (CHITED PBESB ASSOCIATION—BT ELECTBIC TKLEGBAPH—COrYfUGHT.) (Received November 14th, 7.15 p.m.) NEW YORK, No-vemb.er 13. The collapse of the long-established-southern investment house of Caldwell and Company, of Nashville, followed by the closing of the Affiliated Bank of Tennessee and.the Dolston Union Bank, which have combined liabilities Of 25,000,000 dollars, has thrown the State of Tennessee into financial and political turmoil. While it claimed that the assets are adequate to meet obiiga-r, tions, the Bank of Tennessee has only 13 dollars in cash, "while its liabilities are 13,000,000 dollars. The State of Tennessee has 5,000,000 dollars on deposit and a number of counties also have funds there. The State .of Louisiana has 1,240,000 dollars deposited. A rigorous investigation is impending, and the newspapers are . already demanding the impeachment of the Governor of Tennessee. Two l days' run on virtually all the banks occurred, as the populace became panic-stricken. ' To-day three banks announced permanent amalgamation in order to withstand thfe shock of large withdrawals, while other institutions brought in several million dollars from Atlanta. , The district Federal Reserve Bank paid all-comers until something like calm was again restored. Federal receivers have been placed in charge of the defunct institutions.