Fitzgerald leader enterprise and press. (Fitzgerald, Ben Hill County, Ga.) 1921-1964, 1926-07-29
CLOSING OF BANKS
NO TEST FOR GEORGIA
CONDITION OF STATE EXCEL
LENT, DECLARES GLENN, OF
ATLANTA CLEARING HOUSE.

Atlanta, Ga.-The banking, COM
mercial and general economic situa-
ton in Georgia was not reflected in
the recent closing of Sc small banks
in this state, for the agricultural,
commercial and industrial conditions
in Georgia are at a higher level Of
prosperity than at any time in recent
years, according to Thomas F. Glenn,
president of. the Atlanta Clearing
House association.
No national banks were involved
in the closing, and only one small
member of the federal reserve sys-
tenn closed, Mr.. Glenn pointed out,
stating that all the banks closed were
small institutions capitalized at from
$4,000 to $4,000. Mr.. Glenn also
emphasized the fact that the small
banks were members of a chain head
ed by the Bankers Trust Company of
Atlanta, and that when this bank,
which acted as fiscal agent for the
closed banks, ceased operation, the
small banks had to close.
Mr.. Glenn's statement follows:
"The recent closing of Sc small
state banks in Georgia, including Fl
branches, in no wise reflects general
banking, business or economic condi-
tions in the state.
"Of the banks which have tenn
porarily suspended business, 83 were
identified with a single chain. A
number of these are regarded by the
state banking department as solvent
and are expected to resume business
as soon as they can make connections
to replace those of the Bankers
Trust company of Atlanta, whose
bankruptcy was responsible for their
closing. It is significant that the
closed bank do not include single
national bank and only one small
member of the Federal reserve sys-
tenn. It was particularly significant
that the parent institution was a
holding company and did not operate
under the provisions Of the state
banking laws and therefore was not
menable to the direction and inspec-
ton system nor supervision in any
way of the state banking department
of Georgia.
"The effect of these suspensions
has been neither widespread nor Sc.
we're, and at present sound spirit
of confidence is felt throughout the
state. The banks of the state are
4 amply able to take care of the mer
chant, manufacturer and farmer.
"The Georgia business and eco
nomic situation has never been NOR,
favorable. Crops of splendid prom
Use are within 80 to 60 days of ma
turity. Peaches, melons and trucl
crops are being marketed in goo,
volume and at good prices. On Au
gust 2, the tobacco markets open il
81 south Georgia cities, and bot
production and grade are excellent
Cotton and peanuts will be harveste,
next, and both these crops show ex
ceptional promise. Corn, small
grain and other crops assure bette
yield than for five preceding years.
!: "The same bright situation exist
with regard to commerce and manu-
featuring. Merchandise distribution
is at high level, even during tn
usually quiet summer season. Build
ing permits mount steadily. Sale
activity on both city and farm prop
erty is marked. Capital expenditure
by eastern and western enterprise
for southern factories, distribution
warehouses and branches are con
stantly increasing.
SIN brief, except for the temporary
inconvenience caused by a closing OF
these banks, there is no factor in the
business outlook for Georgia, which
is not of favorable nature"