The Washington herald., 1914-09-27
NEW YORK STATE BANKS
EXONERATED In REPORT
CONTINUED FROM PAGE ONE

partment some time ago furnished the
Comptroller OF the Currency a list of all
the banks and State institutions An Penn
syIvanla subject to call II such a list Is
not now available for your use we will
be pleased to furnish you with a dupli-
cate copy"
The Treasury Department made no ad-
ditions yesterday 10 the blacklist" given
out Friday. The viewpoint Of the bank
ers respecting the attempt Of Secretary
MCAdoo TO become arbiter over the bank
ing business of the country as far as
loan rates and reserves are concerned
found expression here yesterday. state
ments issued by the Secretary in the last
few days and his communications to
clearing house associations and bankers
have established two things pretty much
to the satisfaction Of financial cIrclts
The first is that he intends to fix the
maximum interest rate at below per
cent: and the other that he will use the
tremendous influence at his disposal to
fix - per cent as the maximum for re-
serves throughout the country.
The Secretary has three instruments in
his hands for the assumption of these
ultra wires perogatives. These are his
power. to make or Withdraw deposits of
government funds, the power TO refuse
issuances Of emergency currency, and
the influence over public opinioa which
can be welded through the publication
of his blacklist"
While bankers generally are irritated at
the attempt of the Secretary to assume
powers not vested in him directly by
law. they are inclined to view the stua-
ton with a great deal of complacency.
believing that the Secretary's attempt is
doomed to failure. In other words. they
believe they can still continue TO use
their own discretion in making loans
and accommodating reserves, however ac-
tive the Secretary may become.
Result of Slack Business.
Bankers say that the accumulation of
reserves in the banks outside of New
York. where there has been a peculiarly
local strain due to the floating of the
city's foreign Indebtedness and arrange
ments for meeting other international
obligations. is a natural result Of the
slowing up Of business and the Issuance
of the large volume of the emergency
currency. 1t is pointed out that with
business decidedly in check there is a
much larger circulating medium now
than there was before the European war
started.
Furthermore, bankers say. there are
other reasons, particularly in county dis
tricts. for Accumulation of funds in banks
All of them have been Influenced to some
extent by the formation of the 500. 600
gold pool for meeting international obli-
cations and are gathering funds to meet
the appointments that will fall on them.
In the South. particularly. it is pointed
out the maturity of May and June loans
was measured in consideration of the
demands which were to be expected for
the movement of the cotton crop. These
maturities have come on to find that
cotton is not being moved because OF the
absence of the export market, which was
obliterated by the war.
Treasury officials denied yesterday that
there will be any considerable delay In
the organization of the new banking
system. II was stated that the only
thing standing in the way is the selec-
ton by the Reserve Board OF the Glass c
directors for the reserve banks, one Of
whom in each bank is to act as the
reserve agent and direct representative
OF the board
1t was learned on reliable authority
yesterday that a reason for the long
delay by the board in appointing these
directors Is its desire to secure particu-
larly strong men for the positions of
Federal reserve agents. The board. 1t
is said, intends to exact as strong an
influence as possible over the affairs of
the twelve reserve banks through these
agents. 1t is understood that the board
intends. in some cases at least, to allot
a salary of 5000 annually to the reserve
agents. The board is authorized by the !
law to fix tle salaries of these agents. |
but they must be paid by the reserve
banks themselves.