BANKS COLLAPSE

Hokitika Guardian, 15 November 1930, Page 5

BANKS COLLAPSE

STATE GOVERNOR BLAMED

[United Press Association—By Electric

Telegraph.—Copyright,.J

NEW YORK, Nov. 13. Tii© collapse lias occurred of a longostaolislieu southern investment house that of the Caldwell Coy of Nashville It was followed by the closing o. the affiliated Banks of Tennessee ant the ItolfSton Union Hank, winch lum , combined liabilities of Ho million dot * Jars.

The collapse has thrown the State of Tennessee into financial and political turmoil while it is claimed that the assets are adequate to meet the obligations, the Bank of Tennessee has only thirteen' dollars in cash; while the liabilities are thirteen million dollar/}.

'The State of Tennessee has five million dollars on deposit in this bank. A number of counties also have funds there. The State of Louisiana has 1,240 thousand dollars deposited with the Bank of Tennessee,

A rigorous investigation is impending, and the newspaper are already demanding the impeachment of the Governor of Tennessee,

RUN ON THE BANKS

NEW YORK, Nov. '3

Regarding the banks closing in Tenriessee, a two days'run on vvtunlly nil of the banks occurred ns the potnilrtcS' became panto stricken, To-day ' tho three banks - announced their' permanent amalgamation in order to. withstand the shock cf huge withdrawals, while other ! nfltitut’ons brought in several million' dollars'from the Atlanta district. The Federal Reserve Bank paid all comers' until something like calm was again restored.

Federal receivers Jiave been placed in charge of the defunct institutions.