Forest City press. (Forest City, Potter County, D.T. [S.D.]) 1883-19??, 1913-10-31
From the New York Commercial.

h federal administration and the public
In general nave been somewhat surprised
TO find SO much opposition to the currency
bill coming from the small bankers of the
Interior. because 1t is ora of the purposes
of the bill to make these bankers indie.
pendent of the large reserve bank in
New York and Chicago by giving them a
I chance to rediscount their commercial
paper with the regional reserve banks
which are to be established in. u districts
throughout the country.
What tho Cat Said.
The cat that jumped out of the bag,
when the lady opened 1t at q session OF
the American Bankers association. at
Boston, early in the week. was the ex-
cessive rates OF interest which small
banks in the interior are accustomed to
impose upon their customers. She OBJ
jected to putting part of the capital OF
her bank into stock in a regional reserve
bank which would be entitled to only 5
per cent in dividends because she was able
to lend ali her money at 10 per cent in the
town in which she does business as head
of a national bank. From the banks
standpoint this is q very serious objection
to the bill. The lady undcrstated the
facts. For half a century bankers in the
west and southwest and throughout the
in~ter-mountain regions nave been able to
charge anywhere from 10 to "a per cent a
year., n "a per cent was by no means
uncommon. Eighteen per cent was consid-
cred a very moderate discount rate In the
state of Wyoming. Particular attention
is drawn to the state of Wyoming because
are prominent in the anks of the oppo-
sition to this bill, and no state in, the
union has suffered more from excessively
high rates of interest charged by local
bankers
Something 60 Regret.
It is to be regretted that the bankers
assembled at Boston did not discuss this
bill in a broader way. They have forgot
ten the essentials. First and foremost,
h people of this country, and especially
the farmers Of the west and south, are
determined to establish q banking system
with the help of the federal government
that will relieve them from the burden of
paying 10 to "a per cent for money. The
credit of a man dOing a flourishing busi-
ness in Texas or In Wyoming should be
just as good as the credit of a man of his
class in New York or Boston. but the
western or southern man annot get good
terms. They do not get them. and when
the bankers c~riticise the features of this
bill which are designed to lower the rate
Of interest to borrowers they should state
this fact plainly and defend. IL possible,
the usurious practices that prevailed in
nearly all the smaller towns and cities OF
the interior. These are x facts thai
cannot be lodged and which only q wom-
an has ventured to admit in open court
when the press of the country stood ready
to report what was said. The inen were
more discreet from the bankers stand
point. but the lady unwittingly rendered
the whole country q great service by be-
ing candid at a psychological moment.
When well informed bankers are pinned
down to facts and are not permitted to
deal in glittering g~eneralities their objec-
ions to this bill become very narrow.
The president of the largest national bank
In this city appeared before the Senat
committee on banking and currency and
EXPIRE ased his approval OF the main fea-
lures OF the bill. which he believes will
prevent a repetition Of the panic of 1907.
Present Banking Law Defect.
Since the present national banking sys-
tenn was established this country has had
three tremendous panics involving the
banks of the whole United States as well
as some other financial disturbances
which were Of less Importance as far as
general business was concerned. All of
US can remember the panic OF 1907. most
men In business had some experience Of
the panic Of 1888. and the veterans have
not forgotten the panic OF 1879. every one
Of them due largely, II not wholly. to the
vicious features contained in the national,
bank act. Other countries W been more
seriously disturbed and have suffered
greater industrial depression than the
United States has within the last half GEN.