The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1906-09-08
Praised as Warning Word
and Condemned
as Rot.
CHIEF TOPIC OF THE DAY
Suggestion That Advice Be
Followed by ReVOKing
Privileges.

a word of warning.
A threat OF discrimination in favor OF
banks that are good.
just rot
In these essentially different ways
local bankers regard the notice to ma
tional banks, issued yesterday by Secre- |
tary of the Treasury Shaw, protesting
against the practice of lOaning money
on call, at high rates of interest. Among
bankers yesterday afternoon and this
morning ii was the main subject of dis
Cussion
Charles J. Bell, president Of the Amer
lean Security and Trust Company, APP
proved of the Secretary's letter and
thought il was both excellent and OPP
perfume. He suggested that IL would
mean that banks which loaned locally
would be favored in Government depos-
its. He asserted that the National city
Bank, Of New York, had never loaned
money al a higher rate than per cent
TAFT Says Good Advice.
When the question was presented 10
Col j. SelWyn TAFT, manager for the
International Banking Corporation.
whose relations with the Treasury De
partmenJ are quite extensive he thought
it was a timely word OF advice and was
of the opinion that the Secretary has a
fun knowledge OF what ne is talking
about and that he does not speak with
out careful deliberauon. To the further
suEEeEJ-1u that there might be an inn
piled threat In IL 90 the banks he said.
mo- / see no threat al an in ia
word of advIce-that is all"
r. y. Harper, president of the Amer
lean National Bank. which is a desig-
mated Government depository, said the
circular could ID no wise affect his
institution. as il had been the iuyariabIe
rule of his bank 20 make provision first
and all the time for local borrowers.
Although tire opportunity had been fro
quthtlN prcsented 10 secure higher
FdJe bN sending money away ID had
Deen considered unWlse 60 do So.
Playing Politics"
Playing politics" is the way a we'll
known local banker expressed himself
Wall Street be said mad been favored
in the present decision To anticipate
gold exports. and this was a sop % the
rural element which was opposed To
ANYTHING favoring the Eastern money
market
a prominent local broker whose in
terests are entirely confined to Wall
street believed the advice was entirely
right and suggested that the next move
on the part of the Secretary would be
TO revoke the privil, ges of those Gov
eminent repositories which failed 10
was impossible 10 secure loans on col
lateral IN Washington and was of the
opinion thar the cause could be traced
70 the fact that money is sent out OF the
city.
on this subject he spoke quite feel
ingly
Weakest Thing Ever Issued"
Replying 10 an inquiry by the Times
man as 90 his opinion about the circular
In
his name mentioned made this state
ment, which he said expressed his views
fully;
Il think il is the weakest thing Sec
rotary Shaw has issued Bankers. like
everybody else will lend money where
II commands the highest price; it's a
commodity, and not AN article of favor
ltism. Does he intend TO compel the
bankers TO lend out their money al
Per cent and DO SO, how Is he going 10
DO il? Apparently he thinks he can
force money al command from sDecu-
latlcu into legitimate business, but that
IS beyond Jne power az all the govern
ments IN the world ID is lust as inn
portant 10 keep money easy in New
York as anywhere else High rates will
be felt all over the country. and money,
Ike water will run in and I'll up the
void.
NOrment Much Pleased.
Clarence T. Norment. president of the
Central National Bank. which is a desig-
mated Government depository. was of
The opinion that the move of Secretary
shaw was a wise one and would greatly
bcuent tho money situation. He said
NE Lad always been opposed 20 send
ING funds out of the city and had never
approved Of a rate higher than per
cent and as lar as his bank was con-
cpTUed had carried out mis- convictions.
The action of the Secretary would serve
as a check on the freedom of the banks,
which might DE depicting their own
Golfers for temporary advantage, and
could only meet the approval of all
conservative mon