The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1913-08-16
WOULD GOVERN MONEY LOANS
TREASURY DEPARTMENT WOULD
NOT SUPPLY MONEY FOR
SPECULATION,
Banks That Lend or Borrow for
Speculative Purposes Are to BE De-
barred from Share In $4,000, 900.

Washington, Aug. 12.-Banks that
borrow or loan money for speculative
purposes will be denied any portion
Of the $5O,OOO,OOO of government
funds about to be deposited in ma
tional banks to assist in moving crops.
The entire amount will go to institu-
tions that earnestly strive to meet the
current demands of the agricultural
sections. This policy of the trade was
announced today when the acting
comptroller of the currency, Mr.. Kane.
in connection with a call for the con-
ditiOn of national banks at the close
of business August 8, asked every ma
tiOnal bank in the country to report
detailed information of all money
loaned or borrowed. Upon the basis
Of this data, expected to be available
in time for the distribution of the
5O,OOO.0O0, the treasury department
will differentiate between banks that
borrow or loan in connection with
speculative operations or are chronic
borrowers and those that endeavor to
relieve financial strain wherever it
exists
Information of this character, it
was announced, now will be regularly
obtained by the comptroller of the
currency as q feature Of his calls for
q Of ho
der that the treasury department
might know what sections of tn.
country are in need OF additional cir
culation at various pptesrisSSass s'9ff 9off the
year. This innovation IS "a a forefIGnfner
of other material chalnigsees IN the
character Of information banks will
be required to furnish the govern
ment. The forms which have been
in use for years are being studied
with a view Of further steps to OBJ
tain detailed information.
Much additional information is to
be obtained from the call made to-
day. The treasury department wants
to know how banks in different sec
tiOns are attempting to relieve the
demand for currency. Acting Comp
trOller Kane issued this statement:
"All banks have been requested to
send in on special forms furnished for
that purpose detailed statements of
all money loaned to other banks as
we'll 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 deter
mine what sections of the country are
In need Of additional circulation at
stated periods of the year; what banks
accommodate their correspondents in
such sections and in addition should
also enable the comptroller to more
easily ascertain what banks bor-
row in order to meet legimitate dis
counts and varying conditions, and
what banks should be listed as
chronic borrOwers-that is, those
which borrow to reloan in normal
times.
This amplification of reports Of
condition is in line with the policy to
obtain from those reports as much
information as possible to serve prac-
tical as we'll as statistical purposes"
One primary purpose in seeking de-
tailed information is to discover which
banks are borrowing for speculative
purposes and which are borrowing to
meet the legitimate financial needs of
the country. The treasury depart
mont. 1t was said. wants to single out
the institutions that are not using
their resources to help the crop NOV
ing period, so that it would be in
position to decline them special de-
posits of the government to relieve
stringency and place the money with
banks that are sending currency to
districts where it is needed
The information collected probably
will be available to congress for use
in connection with the question of
amending the pending currency bill |
A MONSTER RATvCJ,ER