Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-07-21
PLIGHT OF FLORIDA
BECOMES SERIOUS
Bank Failures Follow Boom
and Citrus Pest, but
People Still Hope.

tunate in the untoward things that
have been responsible for the plight Of
the present day.
The boom was probably the worst
factor in creating fictitious values and
induced large selling Of property on
small down payments and at the same
time many purchases in like manner
on the part of the natives.
In the midst Of the boom came the
deadly explosion. Like bolt every
thing stopped short. Building operations
on the grandest scale were abandoned
and are monuments to the collapse to-
day-and many banks held mortgages
on this almost worthless property. 1t
was the chief security for loans and
bank after bank laid down under its
awful load. Then came the Jolt OF the
first hurricane, greatly damaging the
southern half OF the State and sending
many North permanently. Reports on
the second storm started more and even
when It was discovered that 1t was
less damaging in result than predicted
1t was with difficulty that the wild trek
nortfward was sidetracked toward the
middle OF the State.
Tourist Business Fell OF.
The second industry in the State,
wirtering the tourist. was almost killed
by the collapse Of the boom and the
tornadoes.
In the boom building operations Of
the residence order and land Develop
ment had overincreaSed their housing
needs. spreading out over much acreage
Small towns that did not need mod
ern development first paved their
streets and as the boom advanced ana
improvements seemed to pay, added
sewerage and finally expensive city
managers. It was very easy to obtain
Affirmative vote for a bond issue for
almost any betterment, where today the
reverse exists in aggravated form.
Payments on boom-priced property
stopped altogether coincidently mort
gaeees defaulted and in many instances
the former owners refused to take back
their realty, dreading the assumption
of ownership with attendant RESPONSE
bility for taxes
Taxes Piled on Taxes.
pronerty had been assessed on boom
values and on the many improvements
value as well. The State made every
possible concession, but even then large
amounts of unsolicited taxes remained
on the books Foreclosing mortgage
in Florida costs $500 and there have
been very few cases where 1t has been
carried to a conclusion.
Realty Experts Get Out.
Thousands of realty men had de-
scended during the boom. With its END
they slowly departed for parts unknown.
They vacated offices and homes. Some
had paid out their cash as soon as
made in options that they never exer-
cised: others had purchased large
amounts of land at high values and
left town poorer than they came, others
had left sadly developed developments
behind them and practically all had
left unpaid notes for the banks to stag
ger under. Other collateral for bank
loans was lacking, 50 that credit was
based on realty and reputation and
in the Northern section Of the State
on lumber. etc.
Agricultural demands were not very
important, although the culture OF spe-
cial crops. citrus fruits. peppers. toma-
tees. celery. etc, called for some use
of bank funds.
just Cause and Effect.
Under the weight of happenings many
banks found 1t necessary to close
others were forced as an alternative
to a deadly run. When all depositors
require their cash at one time, the
strongest financial system is in danger
and every banker understands It, In
larger cities under like conditions help
is not far away and assets may be
quickly realized on. through rediscount-
ing and with aid of the Reserve system.
Assessments have attended reorgani-
cation and rehabilitations of Of some
banks: some have stood tn egaff up to
within the last few weeks when they
we're too for gone to reorganize-others
have found unfaithful officers; with
overdrawn personal accounts and many
who had borrowed money on the secur-
ity Of their own bank stock.
Many of these banks put the signs
on the door and windows and left it
to the State superintendent of banks
to liquidate. adding to the troubles Of
the people. while not changing the out
look for the better.
Tourists Come Back.
Conditions in the State were serious
last Winter. The tourist business was
very light: practically every hotel was
in the hands Of receivers. many re-
manned closed with intent not to open.
and deep gloom seemed to settle
almost everywhere. Many Of those re-
naming in the State did so through
inability to do anything else. En-
ployment was scarce-decidely.
In the midst of depression the
tourists came back with rush. Every
train entering the State discharged
hundreds of passengers, automobile
traffic was fully equal to that of the
boom times and tourists cash was thrice
welcome, although the season was but
short one-and the Summer Is long
and sometimes very slow.
But the people have been game In
spite Of everything. They say that
other States have had their troubles.
and point to Western and Northwestern
wheat States as furnishing compar-
able condition in the matter OF bank
failures, while the counterpart OF their
storms has been repeated again and
again throughout the North.
And Now the Pest.
And now the pest is attacking the
citrus CROP the main support OF South
ern Florida and the people are stunned.
Their plight is certainly bad enough,
and the survivors are hoping that there
will be nothing else in the catastrophe
line coming to them.
They feel that they need aid as badly
as the farmers Of the North and that
their condition must appeal to the
lawmakers, the President and the peo-
pie Of the Nation. Even the most lib
ure, as the handling Of 1t gives en-
ployment to thousands, when the Varl-
Gus operations of harvesting and de-
livering to freight stations are consid-
cred, besides being one more hindrance
and lesSened opportunity for safe lend
Ing of bank funds.
It is greatly to the credit of the
officers Of the banks that have survived
the untoward happening listed above.
They must have sensed the temporary
character of the boom and played the
safe side; they must have been honest
and uncannily wise in making their
loans. Perhaps some of them knew
Of the opportunities for the safest col
lateral loans made on the varying
rates of Wall Street, but all repayable
on the shortest of notice.
fN nRAp fNr lnang