Evening star., 1927-04-10
EY I. 4. FLEMING.

/ FI0Flua IS IN the dumps anu thcS hIa y
have some idea of the seriousness OF
the conditions prevailing. Men who
even a year ago were independent are
TODAY on the ragged edge or even
worse off financially. Many Florida
people invested their all In realty be
fore and in the boom times, perhaps
made good sales and reinvested the
profits elsewhere and the deluge
caught them loaded to the guards.
Many have been squirming, trying
to turn with something saved; others
admit that they are broke, while the
vacant stores, Offices and apartments.
the loss of positions for many and
forced retirement OF hundreds OF
realtors further contribute to the
debacle.
Real estate is fat, or very near 1t.
IN some sections statesmen are still
working, but the few sales made send
shivers through the people, the prices
are so low. Naturally with losses or
hundreds of millions in the aggregate,
with that which you have, doing a
disappearing act, one cannot feel
very clipper, and yet 1t is fact that
the people Of Florida are hopeful and
long for the unexpected to happen and
pray that it may come before they are
entirely out.
Stiff Upper Lip.
Yet before strangers they carry a
stiff upper lip and profess to see their
beloved state coming back and that
before the five years that many tour
lists predict. They base their faith IN
the return of prosperity because the
State has lost nothing but the boom
and spectators; that the climate IS
there Just the same and the best that
can be found in the United States
during the Winter months, that otean
and river, golf courses, magnificent
hotels, better railroad service ana
every attraction natural to the State
are still available. They urge the
AGRICULTURAL opportunities point the
progress made in this line.
The establishment Of chain stores by
practically all of the great establish
ments has given cause for renewed
faith--they do not believe that the
wise business men who dictate policies
To these great establishments would
take the chances if the dullness is to
stay.
Refuse Payments.
Thousands OF buyers of property on
the installment plan have stopped off
short on their remittances and cannot
be coaxed to resume. Many refuse to
visit the state fearing attempts to
collect past due notes, while owners
of property are accepting the situation
and taking their lands back through
foreclosure on notice f'suits by pub.
lication.
Naturally Miami and some other
much.boomed points were the hardest
hit-they claimed the greater share
of the boom, showed the greatest price
gains and were the most seriously
affected. The West Coast, which par
ticipated in the boom to an extent, did
not suffer as badly as the East, where
the excitement ragged. but the disaster
was almost Statewide.
Hotel Interests Act.
Every one recognized that If Flori-
da is to come back the hotels of the
various cities would be forced to
abandon their out-of-all-reason rates.
Owners were slow to yield to the in
eyitable shading slightly in January.
going a little further in the first part
of February and slashing them in the
closing half OF the season..
Rates heretofore possible only in
cond-grade hotels were made by the
best establishments, 81 to $S a day
for single rooms with baths and $o
to SS and $40 double, while in the
last few weeks of the season the
Ponce de Leon OF ST. Augustine boldly
advertised So to $3.50 for single room
and bath.
The rate slashing was Immediately
effective in bringing the tourists and
the season closed with decided I'M
provement in so far as the tourists
were concerned.
Reflected i'm Trade and Finance.
Naturally the prevailing conditions
were reflected in trade and money.
The chief business was literally blown
away, collections were stopped, prop
erty owners revenues were greatly
reduced. bank depositors were forced
to withdraw heavily, bankers were
under the necessity of calling loans
to save themselves and much unhap-
piness prevailed.
There is no better way to indicate
the full loss in business than through
the bank clearings Of Miami. In 1924
banks in Miami showed clearings OF
$212 900 900. rising to the surprising
total of 81 ,000,000,000. or fivefold
greater than in 1924. dropping back
in 1925 to about $60,000,00O.
Deposits increased in Miami banks
showed great growth and great loss
as well. In 1916 they were 10000;
in 1921, $4,000 900: in 1922, $31,000,.
900, and in 1924, $56 100000. December
81, 1925, the deposits totaied $173 ,0OO,-
000-the record. December 81, 1925,
they stood at $50 900. 900, and in the
three months of this year have
climbed back to $90,000,000.
Bankers Act Efficiently.
Financial movements attendant on
such radical changes in business and
bank deposits as those here referred
to require great skill, and it is COM
nliment to the bankers of the State
that they met the exigencies as well
as they did. There were some failures,
a few serious, a chain banking system
wrecked and unquestionably heavy
losses sustained by many institutions.
Tt required great foresight to prepare
for the emergency and an officer who
had not given considerable attention
to the possibilities Of the situation was
derelict in his duty.
Some of the better institutions have
not been making any loans since the
height of the boom, save on other col
lateral than real estate. Others have
been exacting very heavy margins.
Still others have been calling loans
continuously and when the slump
came were reasonably prepared to
meet it.
Any one who has studied the reports
of bankers in Miami and other Florida
cities has noticed a very general hus-
banding OF cash resources, for the
boom there was not the first instance
of wild piunging in our business
records. As a result Of this husband.
ing Of resources the banks that have
passed safely through the severe test
have not made much money, have
not been able to take advantage of
the prevailing high rate for real
estate loans, although Of course up to
the passage of the McFadden bill, ma
tional banks could only acquire real
estate securities of short maturity,