The Barre daily times. (Barre, Vt.) 1897-1959, 1914-10-01
NOT BOARDING MONEY.
Vermont State Banks Meeting Reason
able Demands for Loans.


able Demands for Loans.
Newport, Oct. 1.-The correspondence
relating to alleged boarding Of money
by banks has been given out by State
Bank Commissioner Williams, who re-
piled to Secretary McAdoos tele q OF
Sept. "a.
Mr.. McAdoo telegraph ~ follows:
Washington, D. e = a. 1914.
Frank c. William commissioner,
Newport. ~
Reports no., : ,eing received BY the
| comptroller OF me currency from nation
al banks throughout the country indi-
cate that money scarcity is being oc-
casioned IN large measure because of the
boarding OF funds by many national
banks which are carrying reserves in
some cases two or three times as great
as required by law and also that credits
are being restricted and excessive rates
of interest are being charged to Gus
toners There is at this time more cur
rency in the country than at any time
in its previous history. There have been
issued through the treasury department
since Aug. more than S300,000,000 of
additional national bank currency,
which, together with the relaxation in
business, should create an abundance OF
loanable funds. This department viii
withdraw government deposits from
banks found to be boarding money and
charging excessive rates of interest, aud
will redeposit them with banks whose
funds are being loaned at reasona bic
rates TO meet the legitimate demands Of
business and for moving the crops. This
department would like very much to
have your cooperation in its efforts to
remedy these unsatisfactory conditions
and respectfully asks ii it would not be
possible for you TO secure from all state
banks and trust companies in your state.
statements which will show their cash
reserves as Of a recent date. the rates
OF interest which they are charging on
existing loans and the rates which they
are demanding for new accommodations
and give this department the benefit OF
the information disclosed by these re-
ports. II il confidently believed that II
all banks can be persuaded to use their
resources intellgently and CONSIDERABLY
and al reasonable rates OF interest TO
meet the legitimate demands in their
respective communities. the whole situa.
tion can be greatly relieved and bus
mess restored to satisfactory if not
an entirely normal basis.
Kindly answer,
w. G. McAdoo
Secretary Of the Treasury.
Mr.. Williams replied A. follows.
sept. %, 1914
Hon. ". G. McAdoo.
Secretary OF the Treasury,
Washington. y. C.;
Dear Sir Your telegram OF Sept. % 4
came while / was away on regular l
trip OF examination OF the state banks
Of Vermont
On Aug . ! sent TO an the state
banks OF Vermont a circular calling their
attention to the financial situation. urg
ing them 70 furnish an the money need.
"a for legitimate business needs of citi
,ens Of Vermont and asked them no,
10 loan money 10 speculate in stock-.
Since that time | have made weekly
all upon all the hanks and an exam
nation Of those reports, with the in.
ormation which J have received direct
v from the officers 81 the banks. per
,onally, shows that there has been no
boarding Of money by Vermont state
'anks during the past two months. and
hat they have met all legitimate d.
nends for loans by citizens Of Vermont.
With She possible exception Of few
argc loans 10 manufacturers and deal.
rs who have previously borrowed 81
BOSTON and New York banks. Some
# these manufacturers and dealers have I
cen refused the usual accommodations
h those cities unless they would pay
or PER cent for the money, and they
ave asked Vermont banks to accommo.
ate them. which has been done IN near &
! every ease 80 far. al 9 per cent ami +.
i fact The state hanks Of Vermont 90 8
Ar A. ! have been able TO learn. have
ot increased thc rate 10 borrow ers Z
lnce the European war began, and the !
Maximum rate here has been and j. now ]
per cent
Yours truly.
tSignedi p q. Williams
Rank Commissioner.