The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1925-10-02
SIGNS Lead TO
FLORIDA CRASH
Continued From Page y

md even in many unadvertised
Aarts of the State. Bankers will
handle practically no mortgage
paper and lend money only on
lew Of the choicest properties on
the basis of appraisals often two
thirds under the asking price.
2. Credits are being denied build.
ers and merchants throughout Flor
ida and many credit men have served
notice they will ask for receiverships
this fall If their bills are not met.
| talked with representatives of sew
eral manufacturing concerns who
all said they served such notices on
many customers, who, though rated
at from half million to a million,
could not raise money to pay small
bills. The creditors see that debt
ors are specializing with money they
should use to pay their debts. .
Bankers Are Concerned
This is one of the most serious
situations in Florida and is giving
bankers and business men the great
est COIlCSIIls IANSIl
now pay cash for supplies.
8. Spectators are already set
ting unloading time limits on them
selves which vary from two to four
months hence. One of the principal
arguments they have been using is
that there is another sucker born
every minute and each damn fool
l., hxy hiucrnY.
damn fool just behind who will pay
him profit. 1t cannot be very long
before the last damn fool will be
reached.
A. High pressure selling always
results in oyer-selling the market
and a consequent let-down. In Flor
ida selling is by pressure at the
bursting point and such methods
can not long continue. Abnormal
conditions never survive.
5. Thousands who have bought
from fakirs will soon find out their
mistakes and cause such a howl of
protest that buyers will shy from
even legitimate ventures.
The losers complaint will be
chorused by the many thousands
who toured to Florida in this sum-
mer's heat and found living condi-
tons, prices and climate uncomfor
table, the country in general a dis
appointment, and the palm trees no
match in beauty or usefulness for
the shade trees back home.
Mortgages Are Due
6. A heavy percentage of land for
sale in Miami, Tampa, Sarasota, st.
Augustine, Palm Beach, Daytona
and other boom towns was pur-
chased year ago in the great rush
The first years mortgage, usually
a third of the purchase price, Is
coming due and very little worth
while property can be bought on
the small payment basis. The buyer
must not only pay a profit but also
lift the mortgage. This means That
only the man with plenty Of cash
can sit In the game and the little
fellow has to pack up and go home
This, Of course, will seriously cut
into the buying market.
7. Mortgages falling due will force
selling and thus increase the sup
ply at the very time when the de-
mand slackens.
8. Some sections already show a
recession Of prices. At st. Peters
burg one Of the biggest develop
ments was unable this spring to
pay off it's statesmen and can not
now meet it's builders debt. One OF
the Suzanne River subdivisions. de-
spite advertising given by song and
story, Topped so hard the original
owner had to take it back because
the promoter couldn't meet his first
mortgage note. Several concerns
have been thrown into receiver
ships for failure to pay out. In
Miami some land is now for sale
at lower price than the last buyer
paid.
Bank Clearings Drop
.. Bank clearings showed a peak
business in July when $131, 598,315
went through the various exchanges
of the State. There was a drop
from this in August of SIS, 100000.
. though this was still $2S,000,000 more
than in February or January.
10. The average Americans
psychology is operating against the
boom. Everywhere people talk Of
unloading and ask how long the
boom will last. Let them ask that