FINANCIAL PANIC.

Wairarapa Age, 15 March 1927, Page 5

FINANCIAL PANIC.

BANKS CLOSING IN FLORIDA. AFTERMATH OF TORNADO. (Received Monday, 9.15 p.m. NEW YORK, Marek 14. It is announced from Palm Beach (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-morrow, following upon the closing of three other banks recently. It is alleged that this will result in other banks failing, due to the interdependence of the various financial organisations of the State, and it is feared a panic of serious proportions may result. This is all basically due to the deflation of the land boom, the vast damage done by the tornado, and the bad winter resort season. A strenuous effort was made by vacationing New York financiers to raise sufficient funds from private sources to save various threatened banks, and for a time, by the hurried subscription of several million dollars, they have prevented a complete collapse of the banking system. Similar efforts were made to sustain the Farmers’ Bank, but while 2,300,00 dollars were to-day subscribed it is pointed out that four million will be needed immediately, and a transfer from northern banks would take too long to get to Florida to stave off the runs which have been depleting the cash resources of the various banks throughout the State.—(A. and N.Z.)