The Bamberg herald. [volume] (Bamberg, S.C.) 1891-1972, 1914-10-01
URGES AID OF STATE BANKS.
McAdoo to Know If They Are Also
Hoardng Cash

Washington, Sept. 24.-The anti
money boarding campaign launched
by Secretary McAdoo against nation
al banks, particularly those which
have received federal crop moving
money, or which have taken out
emergency currency, was broadened
today to take in State institutions.
Mr.. McAdoo sent a telegram to
superintendents of banking in each
State, announcing the restriction Of
credits by national banks and the
high interest rate charged, and ap-
pealing for all available information
regarding State banks and trust com
panies. He declered that if the
banks will be persuaded to use re-
sources intelligently the present sit
uation will be great relieved.
Earlier Secretary McAdoo made
public a statement in which he an
nounced that it the State of Tennes-
see continues to find bankers unwill-
ing to renew a 81 100000 loan he
himself will take up the task Of find
ing banks to make such q loan. 1t was
understood that list Of banks which
are piling up reserves or boarding
money will be made public tomor-
row, and that, as announced last
night the practice will be kept up
as long as there is occasion for it.
MIR. McAdoo's telegram to the
State banking superintendents fol-
lows:
McAdoo's Message.
Reports now being received by the
comptroller of the currency from ma
tional banks througout the country
indicate that money scarcity is be-
ing occassioned in large measure be-
cause of the boarding Of funds by
many national banks, which are car
rying 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 in
terest are being charged to custom
ers. There is at this time more cur
rency in the country than at any
time in its previous history, there
having been issued through the
treasury department since August
more than s3Oo,O0O,O0C Of addition
al national bank currency, which, to-
gether with the relaxation in husi-
ness, should create an abundance OF
loanable funds.
Asks for Cooperation.
.This department will withdraw
government deposits from banks
found to be boarding money and
charging excessive rates of interest
and will redeposite them with. banks
whose funds are being loaned at rea-
sonable rates to meet the legitimate
demands of business and for moving
the crops.
This department would like very
much to have your cooperation in it's
efforts to remedy these unsatisfac-
tory conditions, and respectfully asks
if it would not be possible for you
to secure from all State banks and
trust companies in your State state
ments which will show their cash re-
serves 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 accomo-
dations, and give this department the
benefit of the information disclosed
by these reports.
1T is confidently believed that If.
all banks can be persuaded to use
their resources intelligently and con-
and at reasonable rates OF
interest to meet the legitimate de-
mands in their respective communl-'
ties, the whole situation can be
greatly relieved and business restor-
ed to a satisfactory, if not an entire
" nomal basis. Kindly answer.
Pohhr'c Idea