SERIOUS SITUATION

Hokitika Guardian, 5 January 1932, Page 3

SERIOUS SITUATION

MORE BANK FAILURES. DUE TO FREEZING ASSETS. . United Picbb Association—By Electm Telegraph—Copynght. I * NEW YORK, Jaii: 2. The Hartford (Connecticut) City Bank Trust Company, with deposits of twenty-five million dedhus, lias closed its doors, due to its assets being frozen. The East Hartford Trust, with deposits of 3,500,000 dollar's, lias also closed its doors, following upon heavy withdrawals. The closure of these ' twb banks brings the total of the money tied up in banks closing in New England, since October Ist, to approximate!'., 142 million dollars. The Williamsburg (Virginia) Bank, whose deposits are not known, and the Central Trust Company of Owensboro (Kentucky), with deposits of three million dollars, have also closed, due also to their frozen assets. A similar cause lias brought about the closure of the Charleston South Carolina State Bank, with deposits of over twenty-four million dollars. Several small banks in the smile State are simiarl.v affected. A voluntary petition for a receiver ship lias been filed against tlie Ameri : . can Commonwealth’s Power Corporation Coy., one of the largest gas and electric concerns in the United States, with resources estimated at 320 million dollars. The proceedings have grown out of the concern’s inability to secure the necessary financing of three mil. lion dollars in notes falling due shortly. WASHINGTON, Jan 2. It is announced that the outstanding foreign bonds all issued by South American Governments, and held by investors and banks in the Unite! States, of which the interest or the sinking fund payments, or both,, are in default, total 850,000,000 dollars. DIFFICULTIES IN CHICAGO. .CHICAGO, Jiyi. 1. Clrcago, which is already in difficulties, due to the refusal of the hunkers to buy tax warrants, and tlie drainage of civic and school hoard treasuries to give employees half a month’s pay for Christmas, and incidentally, for teachers’ two weeks’ salary of the seven months overdue, has now received from County Judge Edmund Jaricke, a New Year’s gift in the form of a test case decision,- holding as invalid the Cook County Assessment Rolls of 1928 and 1929. The city, therefore, js virtually penniless, and is facing a receivership. Bereft,,of fax income for months, Judge Jaricke lia,s reordered uncollectnble 140 million ~ dollars .of ."taxes un-pa-'d in the “taxpayer strike,” of 1930. Taxes now due - w*ill probably not be .pafcldqe_ tp.,tlyy puling.