New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-08-13
BARS DEPOSITS FROM
SPECULAT|NG BANKS
Treasury Department Adopts
New Policy in Distributing
Funds to Move Crops.
CALLS FOR LOAN DETAILS
Controller Seeks Full Informa-
ton of All Money Loaned or
Borrowed-Local Bank
ers Approve Plan.

Washington, Aug l2.-Banks which bor-'
row or loan money for speculative pur-
poses will be denied any part OF the $780,
10000 of government funds about TO be
deposited in the national banks to assist
in moving the crops. and the entire
amount will go to institutions that earn
estly strive 10 meet the currency de-
mands of the agricultural sections.
This policy of the Treasury Department
was announced to-day, when Thomas J.
Kane, Acting Controller OF the Currency,
in connection with call for the conhi-
ton of national banks at the close CT
business on August Q. asked every nation
al bank in the country 10 report detailed
information OF all money loaned or Dor
rowed. on the basis of these data, eX-
pocted TO be available i'm time for the dis
tribution OF the $4,000 90 the Treasury
Department will aim 10 dlfferentate BE-
tween the banks which borrow or loan
I'm connection with speculative operations
or are chronic borrowers. and those which
try 20 relieve financial strain wherever 1t
exists.
Information OF this character II was
announced, will regularly be obtained by
the Controlr OF the Currency as feat
ure Of his calls for the condition OF ma
tional banks. I'm order that the Treasury
Department may know what sections or
tn" country are I'm need Of additional cir
CUlation al various periods or the year.
This innovation is the forerunner Of other
material changes in the character OF In
formation banks will be required In future
to furnish the government
In a statement issued to-day Mr. Kane
said:
AN banks have been requested 10 seho
In on special forms furnished FOR that
purpose detailed statements Of al money
loaned TO other banks. as well as AL
money borrowed from other banks In
the form OF rediscounts, bills payable. or
IN any other manner.
THE new form viii enable the Con-
troller 10 more easily determine what
sections Of the country are In need or
additional circulation at stated periods
Of the year: what banks accommodate
their correspondents in such sections
and in addition. should also enable the
Controller to more easily ascertain
what banks borrow in order TO meet
legitimate discounts and VARYING condi-
lions. and what banks should be listed
as chronic horrowers-that Is, those
which borrow 10 reloan IN normal times
This amplAcatlon OF reports OF CON
dlt,on Is In line with the policy 10 obtain
from these reports as much Information
as possible 10 serve practical as well az
statistical purposes With this end tn
view the forms used By the department
are being analysed and considered. 90
The information collected probably VIII
be available 10 Congress for use In con
nection with tho question OF amending
the pending currency bill 50 that banks
may be permitted 10 keep subtanuai
proportion II their reserves with CORE
spondeuts. as is done under the present
system.
Local bankers were especially inter
ested in that feature OF the call for re
port OF the condition OF all national
banks which provides for detailed state
ments OF all money loaned 20 other
banks. as well as money borrowed from
other banks in the form OF rediscounts.
bills payable. etc. The leading lns,itu-
tions OF this city were favorable 10 this
new departure and one Of the officers Of
large institution said:
1T Is time that a cleaner understand
ing OF the actual condition In loans be
given to the Controller. and / am heartily
in favor Of this part Of the call Too
many indirect methods OF securing money
have been forced on New York insttu-
tons by country bankers. and this viii
have tendency 20 relieve us OF re-
sponslbllity we felt incumbent when GER
tain accommodations were asked which
were slightly out OF keeping with our
methods OF doing business"
One point which New York CRY bank
ers think 10 unfair is that the call should
be made for a Saturday date. which
tends to place New York banks In an
unfavorable light. as items received Sat
urday morning are not credited on that,
day. Generally. however. the new form
was commented on favorably