The citizen. (Honesdale, Pa.) 1908-1914, 1913-08-26
CROP FUND ONLY
FOR SAFE BANKS
Treasury to Deny Aid to All
! Taking Risky Loans.
ALL TO REPORT CONDITIONS

Comptroller of Currency Will Then
Know Which Banks Buy Stocks and
Which Really Aim to Meet Needs of
Their Sectio1s-No Share In $5o,ooo,-
900 Loan For Former.
An important innovation has just
2Aeen inaugurated by the treasury de-
[partment at Washington to enlarge its
control Of the national banks of the
country.
will be that institutions which borrow
or loan money for speculative pur-
poses will be denied any portion Of the
$50, 100000 Of government funds to be
deposited in the national banks to as
|Sist in moving the crops, and the en-
tire amount will go to institutions that
Earnestly strive to meet the currency
demands of the agricultural sections.
This policy of the treasury depart
ment was first announced when Acting
&Comptroller of the Currency Kane, in
connection with a call for the condi-
tion of national banks at the close Of
Business one day early this month ask
ed every national bank in the country
TO report detailed information of all
money loaned or borrowed. Upon the
basis Of such data, expected to be avail
hble In time for the distribution of the
100000, the treasury department
will aim to differentiate between the
banks which borrow or loan in connec-
ion with speculative operations or are
chronic borrowers and those which en-
leavor to relieve financial strain wher-
ever it exists.
To Provide For Future Loans.
Information of this character, it was
announced, will now regularly be OBJ
aimed by the comptroller of the cur
Fency in order that the treasury de-
bartment may know what sections of
he country are in need of additional
Circulation at various periods of the
Eear. This innovation is to be the
orerunner of other material changes
n the character of information the
banks will be required in future to fur
ish the government.
Acting Comptroller Kane's statement
eads in part:
All banks have been requested to send
b on special forms furnished for that
purpose detailed statements of all money
4oaned to other banks as well as all mon
y borrowed from other banks in the form
f rediscounts. bills payable or in any
ther manner. The new form will enable
he crro+b }ller more easily to determine
eSt reslu'1 circulation at stated periods
nship, Ear. what banks accommodate
heir correspondents in such sections and,
addition, should also enable the comp
roller more easily to ascertain what
anks borrow IN order to meet legitimate
iscounts and varying conditions and
that banks should be listed as chronic
orrowers-that is, those which borrow to
eloan in normal times.
Create Good Banking Conditions.
The treasury department, it was
aid, wants to single out the institu-
ions that are not using their re-
ources to help the crop moving period,
10 that it will be in position to de-
line them special deposits of the gov
rnment to relieve stringency and
lace the money with banks which
re sending currency to districts where
is needed. In addition, it was add
d, there are a few cases here and
here where banks are badly over
baned and the government wants to
hearth that condition in the interest
u good banking.
The information collected probably
ill be available to congress for use i'll
pnnection with the question of amend
rs the pending currency bill so that
hnks may be permitted to keep a sub
antial proportion of their reserves
I& ith cOrraSnOndantS rs is done under