The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1916-05-20
Another Vicious Attack Upon Knott
Fails of It's Efforts

gent voters OF the state, because of the
venom and malice back of the attempt to
make him responsible for the failure of the
Pensacola State Bank, which has been
made the subject of cartoon reproduced
in this city under the caption, Knott Per-
mitted Robbing the People, Failed In Duty
to Close Up Bank" followed by num-
Der of misleading statements.
The attack, among other things, says:
"The laws of congress prohibited Ma
tional bank from lending more than 10l
percent of the bank capital and surplus to
any one individual or corporation" and
holds Comptroller Knott responsible for a
failure ii enforce the provisions of an act
of congress which has no application what
ever to state banks. As a matter of fact,
there is not one single word or line in the
statutes of the state of Florida limiting the
amount of money that may lie loaned by
state bank to any one individual, firm or
corporation and there is no provision of the
state law that state banks shall require
security for loans made The newspaper
having referred to the provision of the act
of congress prohibiting National banks
| from lending more than 10 percent of the
dividual or corporation. which certainly
does apply to National banks. then why is
it that the First National Bank of Pensa-
cola, with capital stock of 100000, de-
iosits of $2,417 900, and surplus of $780,
900, according to the Bankers Register of
| January, 1913, was allowed to fail?
The total amount of deposits involved in
the failure of the Pensacola State Bank,
IT. Al
over 100000 and the paid up capital stock
was 100000. How do these figures COM
| pare with the capital stock and deposits of
the First National Bank of Pensacola,
which was placed in the hands of re-
! ceiver?
! In view of the conditions that contrib
| uted to the failure of these banks, which
are well known and understood by the in
| telligent citizens of Pensacola, there was
absolutely no ground for complaint against
! the staet comptroller, and when the fact
Is taken into consideration that the statutes
Of the United States limits the amount of
loans to be made by National banks and
| that there was no such limitation in the
| state laws, it should be evident that what
ever. complaint might have been deemed
necessary should have been directed against
| the United States Comptroller of the Cur
rency. It is too plain, however, that poll
| tics and nothing else lies at the root of
the article The fact that Mr.. Knott is the
leading candidate for governor is clearly
recognized by this unwarranted attack as it
shows fixed purpose to endeavor to in
5ure Mr.. Knott by misrepresentation and
by charges that are not warranted either
by the law or facts The purpose was not
to attempt to deceive the people of Pensa-
/ cola, as they are too we'll acquainted with
the facts, but it was hoped by such mis-,
statements to, mis1ead the voters in other
sections of the state, where local conditions
were not known and where the fact that the
First National Bank had failed in the same
city was not known
! The immense sum of money that was on
| deposit in the First National Bank so far
overshadows the small amount that was on
deposit IN the Pensacola State Bank as to
admit of no comparison.
! Comptroller Knott endeavored. at the
| Comptroller Knott endeavored at
session of the legislature in 1913 and also
at the session of the legislature in 1915, to
have laws passed limiting the amount of
loans and providing other restrictions for
protecting depositors of state banks. This
bill was favorably reported by committee
OF the house of representatives. at the ses-
sion of 1915, but failed to pass.
Now the whole basis of the charge
against Mr.. Knott is that he failed to apply
the provision of an act of congress to the