The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1925-10-08

rate in the South refuse to help
Tloridas business men. No amount
" interest can tempt them because
hey believe the risk too great
Though Florida's banks have
hore than doubled their deposits dur
ng the last year, they still buy New
Fork call money at or Az per cent,
tather than lend at home for 20 per
ient. This fact alone should give
Die speculator pause.
I have already referred to the
FERROUS credit situation-the refusal
II manufacturers to give even thirty
lays credit to Florida merchants,
because they think the risk too
great.
you can't blame the credit men
Tor holding off," Theodore Pomar,
controller of the Florida East
Coast Railroad, said. 1.-THE country
5 investment crazy and those who
have made little put it right back
INTO tbs game. The merchant is
speculating with money he ought to
use to pay his bills and he is there
tore a very bad risk"
No one will pay bill until forced
10. I tried to collect for a friend in
Washington bill Of $500 from a
man who says he is worth 81 200, 900.
His land holdings would indicate
That rating, but he hadn't $500 dol
lars In the bank and no bank in
Ia l,fe
END him money
Insurance Firms Loan
Money lenders often get so per
rent for their short term loans.
To the 25 per cent legal interest,
they add a commission. People pay
It because all they seek to raise is
Enough for a down payment Of say
30 per cent for the land and they
merely add the usury to the price Of
The property and get 1t out Of the
hext buyer. This adds to the general
Initiation.
On well secured property, usually
With good collateral backing, and at
heir own, and not the owners valu-
ltion, some insurance companies are
making building loans where they
believe permanent development is
Intended But even then they are
isking per cent while they obtain
,nly Az per cent in the North. The
reason for the increased interest,
hey say. is the great risk
Probably the most dangerous finan-
ling in Florida is done by the mu-
Inequalities themselves.
Almost every city and village in
he State is issuing bonds FOR public
improvements. Analysis shows
hese bonds are backed by the film
dest possible security. Banks and
food bonding houses decline to un.
lerwrite or even sell many Of the
ssues and most must be floated
through bond selling concerns at
high commissions.
No Control Over Bonds
There is no State control over bond
ssues.
This winter many millions Of dol
hrs' worth Of these dangerous Sc
turtles will be offered for sale. The
hlesman will say that a whole city
hands behind them. Beware lest it
10 a city of less than a thousand
population offering bonds for pro-
ects covering many square miles.
For instance, the hamlet of Lynn
haven, six miles from Panama City,
IN st. Andrews Bay, with less than
1000 inhabitants, all races included.
S issuing $175,000 worth Of bonds
or street improvements or $175 per
apita for this item alone. Panama
City, with only 2,134 souls, has al
'eady obligated itself for $150,0O0
or paving, ard is talking Of several
Millions for port.
West Palm Beach, with 10000, Is
elling 100000 in bonds for a city
lall and talks Of endless other mil
Ions for other purposes.
What bids fair to break more
nties than anything else are the
hany harbor projects. Almost every
hty on the East Coast claims the
lest harbor possibilities on the coast
Ind contemplates bond issues for
lredging and wharfs.
Dozen Plan HarbOrs
One "city" near Miami which is
ret to be built Is, planning SIS, 900, 900
or this purpose. Fort Pierce with
1919 inhabitants last May, is think
ng Of $12,000,OOO port. Fort
Lauderdale, Miami, Daytona, st.
Augustine-a dozen other points all
Dlan harbors which they say will
get the worlds shipping.
That thn,. q 70 ci,,no,.e II. +Iaa Loliae