BANKS' SMASH.

North Otago Times, Volume CVII, Issue 17748, 16 March 1927, Page 7

BANKS' SMASH.

— Prass Association-

(Aueiraliaa and N.Z. Press Assoeiation.)

[ AETER BOOM SLUMP. 1

(Cabl®-

-Copyrighi.)

NEW YORK, March 14. It is announced from Palm B-each (Florida) that the Farmers' Bank and Trust Company, with deposits amounting to 8,500,000 dollars, one of the largest financial institutions in Florida, will not re-open to-mor-row. following upon the closing of three other banks. It is alleged that this will result in other hanks failing, due to tbe inter dependence of the various financial organisations of' the State, and it is feared a panic of serious proportions may result. This is all basieally due to the deflation of- the land boom, the vast damage done by the tornado and a bad winter resort season. A strenuout leffort was made by the New York financiers to raise suflicient funds from private sourees to save the various threatenedi banks. For a time, by hurried subscriptions of several mitlion dollars, they prevented the complete collapse of the basking system. Similar efforts wer-e made to sustain the Farmers' Bank, but while 2,300,000 dollars were to-day subscribed,. it is pointed out that four million will be needed immediately and a transfer from the northern banks would take too long to get to Florida to stave off the runs which have been depleting the cash resources of various banks throughout the State.