New Ulm review., 1913-02-05
Hammond a Urges
!. Banking Reform
u. ss ~
Wants National Banks TO Be
Allowed 10 Loan On Ag-
ricult,,ral Lands.
lnsur1pce Companies Of East
Opposed TO Measure For
Good Reasons.
81 .. n. 1aad.

~ 3. II. LAdd.
/ Representative W. g. Hammona Of
Minnesota = pushing to the front
his bin now before the house
committee On banking and curre1cy
authorisiag national hanks to make
loens - Improved aGricultnral lands.
The Minnesota Congressman urges In
support g the measure that X viii
give bsEisr security and safety for
depositees IN national banks and
VIII not intsresrs II any way with
he baslh lhesF of thsee institutions,
~. Aorss se11cally. the Hammond NJ.
stiolal 1e1k M enpovers the conD.
s.troalsr e lhs cs,rrency to authorize
Auy Aal5eaea banking association TO
I,osn &C. lnyest under his ssler.
tvjsion 81 IN conformity with such
rules assbSs may prsscrtbe. any por-
don Oft 10 funds not exceeding two
thirds Sf lhe amount Of IT. deposits
not subject Is check. In. nrst mort.
$50 liess npon improved asrtcul-
Etural lard ~:
S. Mr.. 3Ianmond points out that nine
out ofstea OF the national banking
Eassociatis OF the state believe
this pslpoasd lesislatdon wise and
want itsenacted into law. In add.
don GO = = strong sentiment
5throug G the middle west for the
bin. S;a - this backing Mr.. Ham.
lmond endeavor to get hear
ling o1 measure this session Of
congp NTH asview Of getting it
.rapotA pn1shiy TO the house.
z fhe big insurance companies Of
the east, II ID declared might be op-
posed to this, legislation. 1t is well
known that the surplus of many of
the insurance corporations now goes
into farm loans of the middle west,
the income from which returns to
the financial centers. Should the
Hammond bill be enacted into law
one of the results would be to keep
in the interior communities moneys
now seeking investment elsewhere.
Mr.. Hammond is willing to con-
cede that there are many national
banks that ought not to loan any
of the bank funds on real estate Sc.
curity. However, he points out that
In his bill the comptroller OF the
currency is to take cognizance. of
varying conditions in different com.
and to permit banks in a.
to make such loans to
make them under his supervision.
In Southern Minnesota, for example,
persons making time deposits in
state or national banks receive: 3,
1 or perhaps S per cent interest. I
Az q, result these institutions are
Of time deposits Of con-
siderable magnitude, Of an. entirely |
liferent character than those. sub |
ect TO check. Therefore. in Mr..
aammond's opinion, a rule that
night be well for banks having a
mali amount OF these savings de-
'osits would not be at all suitable
or banks the greater portion of
whose deposits were not subject
o check. d., -r,~ -.
Several months ago Mr.. Hammond
made an investigation as to the de-
osits in national banks in the sec.
nd congressional district OF Min.
esota, with a view Of throwing
ONE light on this proposed legisla.
on. The result of his inquiry dis
losed the fact that out OF a to-
II Of ten millions of dollars on de-
osit in national banks, six millions ,
ere time deposits. while four mil
ons were subject to check. He ,
Of the opinion that considerably !
ore than so per cent of the de- ,
osits in the country national banks
the middle west are not
lbject to check. These deposits {
, not vary greatly because they
e In the banks for investment <
lrposes.
Why then, Mr.. Hammond peril
entity asks, is it essential or neces. .
Try that these deposits be treated t
st the same as though they were d
leck deposits? Why should 1t be n
sisted that policy that is proper c
lough, for the investment Of check I