THIRTY BANKS FAIL

Taranaki Daily News, 2 September 1929, Page 7

THIRTY BANKS FAIL

THREE BLACK WEEKS IN FLORIDA. FROM BOOM J I’O DEPRESSION.

New York, Aug. 5.

During the winter of 1925-26, Florida awoke to find a million tourists swarming the State. Now, less than four years later, Florida has touched the depths of financial depression. Within three week, 30 banks have failed, and desperate efforts are being made to prevent further losses.

Some blame the boom, some heavy taxation, including a threepenny gasoline tax. Since 1926 the real estate boom crashed. The Mediterranean fruit fly attacked the ordchards—the best grape-fruit for America’s breakfast comes from Florida. There were two epidemics of bank failures. A hurricane hit Miami, / Miami was rebuilt and the tourists commenced to “discover” Florida again, but the banks failed in the end of 1927. They did not close in groups, as in the last few weeks, but suspended quietly in isolated cases. In every case the failure was traced to lending money in the real estate boom.

In September, 1928, the second hurricane struck. Hard on its heels came the general election when Florida forgot business for politics. Then came the fruit fly. Scientists say it is the most destructive insect the' world has known. The fruit was quarantined and the farmers were hard hit.

The first bank to fail was the People's Bank at Jacksonville. Twenty-five others fell in the following week.