The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-08-29
NATIONAL BANKERS
RESENT LOAN LETTER
"Unwarrantcd Interference" by
Secretary McAdoo and Comp
trOller, They Say.
SEE AID FOR SPECTATORS
stock Exchange Members Deny
Tnfairness on Part of FL
nancial Institutions.
SEE AID FOR SPECTATORS

"Tnwarranted Interference was the
way in which local bankers last night
characterized the step taken by Secretary
McAdoo and John SHELTON Williams Comp
troller of the Currency, In sending 10 the
national banks OF this city and district
for Information in regard to the alleged
calling of loans and the turning down OF
certain securities as collateral for loans
II was said also that the Secretary OF
the Treasury and the Comptrol.,r appar-
entity are planning to protect stock spec
ulators and that such an attitude Is an
entirely new one for the present Admin
istration at Washington one well known
banker In speaking of the Letter said
III the Treasury Department is going
to protect all of the stock spectators it
will have to set aside a special gold fund
for the purpose"
Tn" Treasury Department letter sent
through the office of the Comptroller of
the Currency. reads:
Complaints have reached this office
to the effect that national banks IN Now
York are imposing unn- ccssary and un-
reasonable hardships upon borrowers
whose obligations are secured by COL
lateral, and that certain banks are throw
ing out loans. in some cases. high class
or approved interest or dividend paying
securities.
please send to this office promptly
pNfl INV SNpIu S4ENf1lFt OI your DrtSl-
dent or cashier, the information called
/ for below
IL A descriptive list Of those secur.
tiles tnot accounts heidi which YOU
were carrying for buyers prior to
/ August |. 1914, which since that time
you have requested borrowers either
Ia withdraw from loans or to pay the
loans upon which they were security
J because OF dissatisfaction with such
collateral.
20. \ descriptive list Of all socuri-
ties upon which you have required or
are requiring borrowers to maintain
margin ~ more than % per cent.
indicating approximately as To such
securities the prices at which YOU are
now loaning 10 borrowers Oh those
securities which have been thus dis
eliminated against
IS. The amount OF your call loans,
secured by bonds and stock collateral.
which you have called for payment
since the closing Of the New York
Stock Exchange.
- The amdInt paid or in response
10 such calls
80. Amount Of all call loans held 10y
YOU for account OF correspondents
which you have called since August /,
1914
80. Amount paid off in response to
such calls account correspondentsD.
a. The amount OF new call loans
made by your bank since August l.
1914.
rs. The amount of securities, II ann
which you have sold. or ordered sold
for account of borrowers since Au-
gust |, 1914, because Of the omission
OF borrowers to pay call loans Sc
cured by collateraD or maturing col
lateral notes.
80. 4 statement showing the condi-
ton OF your bank Mt tho close OF bust
ness Monday. August g. 1914, as
called for on pages l and OF form
ins'oseA"
The letter came as a surprise TO bank
| ers here. Members of the New Yor
Stock Exchange seen last night asserte
that they had not been unduly pressed 70
the payment of their Obligations by tn
banks The president of one of the larges
national banks In the city said his nsti
tuition had not called a loan since TN
Stock Exchange closed In ordinary time
the calling of a loan means that the Dor
rover must pay up or the bank may Sc
his collateral with the exchange close
p no such market l. afforded and about n
that the bank can do is TO ask the bor
rover to reduce his loan or pay II a
soon rs convenient
Soon after the exchange closed severa
foreign banking institutions with Me-
York connections began calling loans wit
the idea that they would strengthen tibet
own cash position and thus be enabled I
ship gold They soon found that theI