The Manning times. [volume] (Manning, Clarendon County, S.C.) 1884-current, 1913-08-20
NATIONAL BANKS LENDING HON.
EY FOR SPECULATION
WILL GET NO CROP MONEY
Policy Announced Shows That Gov
ernment Money VIII Go Only TO
Those Institutions That Intend to
Use it as Contemplated by Treas

ury Department.

Banks that borrow or loan money
for speculative purposes Will be de-
nied any portion of the s50,000,000
of Government funds about to be de-
posted in national banks to assist in
moving crops. The entire 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 announced Tuesday, when
Acting Comptroller of the Currency
Kane, in connection with a call for
the condition of national banks at
the close Of business August 9, ask
ed every national bank in the coun-
try to report detailed information or
all money loaned or borrowed.
Upon the basis Of this data, expect.
ed to be available in time for the dis
tribution Of the s50,000,00o, the
treasury department will aim to dif-
ferentiate between banks that bor-.
row or loan In connection with spec
ulative operations or are chronic bor-
rowers, and those that endeavor to
relieve financial strain wherever it
exists.
Information OF this character. 1t
was announced, now will be regular
ly obtained by the comptroller Of the
currency as a feature Of his calls for
the condition Of national banks In
order that the treasury department
may know what sections of the coun-
try are in need Of additional circula-
tion at various periods Of the year.
This innovation is forerunner OF
other material changes in the char
acter Of information banks will be
required in the future to furnish the
Government. The forms which have
been in use for years are being stud
led with a view to further steps to
obtain detailed information.
Acting Comptroller Kane issued
this statement:
Call banks have been requested to
send in, on special forms furnished
for that purpose, detailed statements
of all money loaned to other banks
as well as all money borrowed from
other banks in the form of redis-
counts, bills payable or in any other
manner.
"The new form will enable the
comptroller to more easily determine
what sections OF the country are in
need Of additional circulation at stat
ed periods of the years, what banks
accommodate their correspondents In
such sections and, in addition, should
also enable the comptroller to more
easily ascertain what banks borrow
in order to meet legitimate discounts
and varying conditions, and what
banks should be listed as chronic
borrowers-that is, those which bor-
TOW to reloan in normal times.
"This amplifcation Of reports Of
the condition is in line with the pol
icy to obtain from those reports as
much information as possible to
serve practical as well as statistical
purposes. With this end In view the
forms used by the department are
being analyzed and considered"
One primary purpose in seeking
detailed information Is to discover
which banks are borrowing for spec
ulative purposes and which are bor-
rowing to meet the legitimate fnan-
cial needs Of the country. The treas
ury department, it was said, wants
to single out the institutions that are
not using their resources to help the
crop-movilg period, so that it would
be in a position to decline them spe-
cial deposits Of the Government to
relieve stringency and place the
money with banks that are sending
currency to districts where 1t is
needed.
The information collected probably
will be available to Congress for use
in connection with the question OF
amendment the pending currency