The Birmingham age-herald., 1914-12-04
RESERVE BANK RATE HIGH ID STOP TOO
 MUCH BORROWING
Local Financiers Discuss Rate Fixed by Reserve Board for Atlanta
 District

The interest charge of per cent now, and former charge of 6ii per cent by the regional bank of this district. as against per cent by some of the reg ional banks elsewhere, has attracted con- siderable attention among business men in this district and no little criticism. It Is stated that the south. which has been lately hard hit by the cotton situa- money than other regional bank ndis- trcts.
 Inquiry among bankers yesterday brought out the opinion that the interest rate was made by the federal reserve board in Washington and was so placed on the south to endeavor to find out how the proposition worked and incidentally to keep the banks of the Atlanta district from rediscounting too rapidly at the start.
 My idea about the higher interest charge by the regional bank of this dis trict is that the officers wanted to keep the south from borrowing too much" said w. w. Crawford president of the Amer ican Trust and Savings bank Tn their wisdom the board realized that there would be quite a demand on the bank oi this region for funds. And aside from that, New York is accustomed to getting money cheaper than this section or any section like this. The reserve board, V other words, by the higher rate to thi: section. put the soft pedal on. and am not ready to criticize them for 1t. Il strikes me that the members of the board know pretty well how to handle this situ- aton. Later on l should think that a reduction will be made"
 John II. Frye president of the Traders National bank. said The members of the federal reserve board doubtless consid. cred the matter of rates very carefully and after considering all the questions in- volved, fixed the rates for the various reserve sections. Having this opinion would dislike very much to offer any opin- ion as to why that was done or to say anything further about that policy"
 J. K Fleming of the First National bank said: Larger centers as a rule gel money cheaper than smaller centers, and that may have something to do with tht rate differences between the regional bank ol thiS ecSaioii hiu ttnttIS. <aut again I imagine that the board realized the temptation that would be offered te borrow. and as the deposits of our reg ional bank are not as great as other bank. they increased the rate. After they tr, it out for awhile. believe the rate will be adjusted satisfactorily
 Nose Levy. vice president Merchants and Mechanics bank. said: That rat, charge on ths section is the greatest mis take the reserve board has yet made. is discrimination. think of all sec tions the south Is most in need of low in terest rates. The rate Is said to be sim ply for the purpose of causing this sec tion to go slow. My opinion Is that tn board should make rate for the tern of paper presented. If a bank wante, short term accommodations the rat should be low. and If the bank wante, long term accommodations the rate shoul, be higher. In other words, the long tern bank should be made to pay for its owl accommodations"
 w. Fl. Kettig. director of the Atlanti regional bank. said: We have no au lthority in connection with the interes
 charged. That Is fixed by the federal re serve board and we have absolutely n' voice in the matter have naturally nt l opinion to offer in reference to the diff ferences said to exist in the rat charges"