FINANCIAL TURMOIL

Poverty Bay Herald, Volume LV, Issue 17417, 15 November 1930, Page 5

FINANCIAL TURMOIL

U S. BANK COLLAPSE PANIC IN TENNESSEE ' NEW YORK, Nov. 13. The collapse of the long-established southern investment house of the Caldwell Co., of Nashville, followed by the closing of the, affiliated Bank, of Tennessee and Dqlstpn Union Bank, which have combifieiL liabilities of £5,000,00(1, has thfowrliktfei StateoLTonisesiH'o into a financial find political turmoil. While it is claimed that the assets are adequate to meet the obligations the Bank of Tennessee has only £2 12s fid in cash, while the liabilities are £2,600,000. The State of Tennessee has £1,000.000 on deposit and a number of counties also have funds there. The State of Lousiana has £248,000 deposited. A rigorous investigation is impend ing, and the newspapers arc already demanding the impeachment of the Governor of Tennessee. A two days ’ run on virtually all the banks occurred as the populace became panic-stricken, to-dav. Three bank's announced a permanent amalgamation in order to withstand the shock of large withdrawals, while other institutions brought in several million dollars from the Atlanta district.'" The Federal Reserve Bank paid all comers until something like calm was again restored. The Federal receivers have been placed in charge of the defunct institutions.