New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-09-24
,.slhenTnstitutionsSend-
" Money Must Charge
Reasonable Interest.
.,NEERS ARE WARNED
UT TO HOARD FUNDS
,:.-s,Sry Refuses Money for
saving Crops Asked by Cot
ton Belt FinaucierS.

v.,Ainvton, Sept. 2S.-SeeretSry Me-
~. ,..nisht adopted stringent meas
~ "a urge national banks to extend
,..;,;-,,s credit and charge normal in
y, ,s,ss on loans. He telegraphed
!. IN national banks in the four re-
-, cities in the South that their re-
-, for additional crop moving funds
r.. no federal government would not
= ,-.,,rtsd at this time, and made 1t
,hst his action was taken in con-
-. -, with reports Of excessive in
100 ystes and restriction Of credits.
statement made public with the
Ian Mr.. MeAdoo declared that
~. waS an extraordinary boarding
!, ..oney by banks throughout the
- ard piling up of reserves with
$500 y. ceres,ion. lie said reports to the
s...,oiler OF the Currency showed that
e v..sv boarding has been carried on by
s.rIs 70 an extreme degree, and an
.s.rssd that he expected 10 focus at
..rtion upon tho guilty banks by issu-
- dsily list Of those with excessive
..s.rves. Although the federal govern
~ has no power over state banks or
80 companies. the Secretary ex-
.,;,.S that state bank superintendent
- he asked 10 furnish available in
s',-stion on money boarding in such
.,iitutions. He characterized money
s.rdipr By banks as the agency most
's,ly TO impair confidence and injure
stsness.
Nr. McAdoo's Statement.
-, statement in full follows:
u have decided not to deposit the
v,opd instalment Of crop moving funds
~ your bank at this time. You can,
l,v,yer, II you desire, withdraw one
IN 81 the securities deposited by you
IA use them as security for the issue
4 additional currency il YOU make ap-
,j1hon therefor. am Informed that
INV banks in your state are refusing
rake any loans for crop moving pur-
,,sts, and that in many cases good
ms are rejected or unreasonable
1.s, Of interest are asked | am also
siormed that many banks which have
uksn out additional currency are re-
ming to use II, in spite of great de-
urnds for money. trust you are not
ting this. shall withdraw all gov
gnnens deposits from banks charging
gcsssiye rates Of interest, or which
Hiuss reasonable accommodations, and
shall refuse to issue so-called emer-
rssy currency to banks which are not
sikng use Of it on reasonable terms
if tee benefit Of the business COM
nniy. Il is essential. in the present
ltustion, that everybody pull together
q an unselfsh spirit for the good Of
lie country. |, Of course, expect the
krh TO make a reasonable charge for
snzmodations. My point is that the
dirge must be reasonable, as the CO.
gsrstion and help Of the Treasury will
Mbs extended on any other basis.
Banks HOarding Funds.
The reports Of national banks now
ing received by the Controller of
II Currency in response to his call for
statement Of their condition as of
Sg9nber u indicate al eXtraordi-
1Y boarding Of money by many ma
a'stl banks in various sections of the
1unIy. an sstonished that so many
Z The national banks are pursuing a
/ Ulte so contrary 10 the PUBIC inter-
q and so indefensible from any point
dHeN There is neither occasion nor
,ssssity for IT,
Full reports have not yet been re-
clysd by the Controller. but they are
snins in daily. intend to begin
Hging daily 8 list Of the banks which
ne boarding money by maintaining ex-
1sHve reserves, in order that the
sntry may know how they are per-
'ring their public duties. The re-
hiiS Of national banks are public
F'perty, anyway, and while they have
s'n published in their respective com
asnltes the significance Of their state
s,nts is not generally understood. The
Nelie does not know how to analyze
zen. Ny purpose is to focus attention
.Pen the excessive reserves carried by
nose banks, for the reserves indicate
sisihsr or not the banks are using
esH full resources for the relief and
er'mmodstion Of business in their re-
Ssstve communities
It's matter Of extreme regret that
t government has not the power to