Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1914-09-24
.m'A0oo RAPs BANKERS
Charges Them With Hoardins Funds
and Refusing to Make Reasonable
Loans at Fair Rates Of Interest.

! Washington. Sept. "a sensational
g. charge that American oaiAs are
boarding their money ana exacting ex-
orbitant interest rates Is contained in
u fcrma! statement issued by Secretary
of the Treasury Mc-Adoo.
The secretary announced mat he had
refused TO deposit government funds
for the moving of the crops in ten
southern banks because ne is Informed
; that many banks in that section are
refusing to loan money Tor this pur-
pose and also are charging unreason-
able interest rates. The secretary has
evidence that The rates demanded
range as high as =, per cent III some
localities.
In addition the secretary said that
the reports 10 the controller of the
currency disclose IA boarding of money
in banks in many other Parts of the
country He severely denounced ma
tional banks for pursins policy SO
detrimental To public interest, and an
nounced that he will publish g daily
list of the offenders. together with the
statements made by such banks to the
controller. These reports which have
never been revealed hitherto on the
ground that they are confidential Mr.
McAdoo declares are public property.
Mr.. Mc.Adoo asserted that he vii.
punish the alleged offenders further
not only by refusing rop moving
funds. but by withdrawing government
deposits entirely from the institutions
refusing reasonable accommodate TO
business men and by refusing the APP
plications of such banks fer issues of
emergency currency. He expressed re-
greet that he can not reach STATE banks
and trust companies with the same
punishment and called upon the state
authorities TO cooperate with tnr
treasury in this campaign.
To Stir Financial World.
The secretary's charges doubtless
will stir up big ruction i'll the finan-
cial world. Bankers here say that The
large reserves shown ny many banks
in their statements TO the controller
are due to the fact that business is duh
and that there are few applications for
loans. The retort OF the treasu. is
that the banks with swollen reserves
have bee: clamoring the loudest tor
emergency currency on the ground that
business is demanding more mones
than the banks have TO loan More
over it is pointed out that the inter-
est rate OF per cent in Chicago and
OF 10 per cent in New YORK shows
the great demand for loans by business
enterprises.
MeAdoo's Statement.
Il have decided not 10 deposit che
second installment OF crop moving
t;snds with your bank at this TINS.
says the McAdoo statement 10 the
banks You can. however, If YOU de
sire, withdraw one half of the secur-
tiles deposited by You and use them
as security for the issue OF additional
currency ii you make application
therefore am Informed that many
banks in your state are refusing 10
make any loans for crop moving pur-
poses. and that in many cases sooo
loans are rejected or unreasonable
rates OF interest are asked. l am also
informed that many banks which have
taken out additional currency are re-
cusing to use it in spite Of great de-
mands for money. l trust YOU are not
doing this.
Il shall withdraw all government de-
posts from banks charging excessive
rates OF interest or which refuse rea-
sonaile accommodations. and 1 snail
refuse 20 issue So called enersencs
currency to banks which are not max
ing use OF it on reasonable terms fos
he benefi, . lac business commun-
itv. Ii is esssis!ai in the present sit
uation that every body pull together in
an unselfish spirit for the good OF the
country.
II, .: course, expect the banks 10
make a reasonable charge for accom-
modations Ny point is that the
charge must be reasonable. as the CO.
operation and help Of the treasury viii
not be extended on any other basis"