BANK FAILURES.

Hokitika Guardian, 21 December 1925, Page 2

BANK FAILURES.

bank failures in united STATES.

' Australia & N.Z. Cable Association.]

NEXV YORK, Dec. 19

The failure of five hanks in Denver, Colorado, yesterday and to-day. make the sixth institution to close its doors there since September Inis again emphasised the economic danger that the United States faces from this .source. Professor Alivcr Sprague, Professor of Banking and Fine-e-- •>( Harvard University, appointed by the Treasury Department to make investigations of the Denver failures, said to he due to frozen assets which the institutions were unable to liquidate quick lien,nigh to meet the demand of their depositors. There have been oilier similar col-

lapses in the past four months. Four hanks failed ill Prescott, Arizona, i'f Novemlier, eight hanks failed in Carolina within a fortnight ill September, while other desultory failures' have been occurring daily throughout the country. Bad management and embezzlements have been largely responsible for the troubles. While in 1924, the total failures numliered 753, it is believed that the number will he much larger for the current year. The- situation is causing anxiety, because the general conditions of prosperity this year has lieen greater! than last, and the basio eeonomc conditions are so good that the banks should have been immune from failure. There wore 225 failures in the first half of 1925. their total liabilities being 86,785,030 dollars. Forty per cent, of all the failures have been occurring in Minnesota, North and South Dakota, lowa amt Missouri. The Middle West has been particularly affected, owing to tin l large numbers of farm mortgages held bv the banks there, with, the farm values failing as flic result of the had crons for several years. Prosecuting Attorney Moore, of Missouri, recently Mamed the failures on to a gang of hank wreckers working from within and sapping the resources of the institutions. Proposals are being submitted to Congress suggesting the organisation of a group of largo banks, with resources under Government control, and working through many branches to assure safety.