Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1914-09-26
BOARDING DENIED
BY BANKERS HERE,
RESERVES ARE LOW
Secretary McAdoo's Stric-
lures Not Aimed at East
ern Institutions, Which
Have Aided Business.

Secretary McAdoo had better mind his
own business and not medde with the
business of the banks He is nosing about
too much" This observation was made
yesterday by a Philadelphia banker in
discussing the assertion of the Secretary
of the Treasury that some banks were
boarding reserves and exactlng exorbi-
tant interest for emergency currency.
This banker Is comparatively a young
man and, perhaps. that explains the heat
of his utterance. Older bankers were not
SO vehement in their expressions All
united in saying that the secretary's as
sertion was not aimed at any Philadel-
pha bank, because the banks of this
city, their sta tements show, are not
boarding their reserves.
A fact that throws, what seems to be
convincing light on this matter was men
toned by bank president. This was
that the conjoined cash reserves of all
the Philadelphia National banks are
little, If at all, above the legal require
ments For seven weeks after the closure
of the Stock Exchange the cash reserves
sank steadily. Before that sinking spell,
they were unusually high. but the long
drain reduced them to a point, probably,
below the legal requirements. For the
last three weeks they have been gaining,
but the gain has come nowhere near
making up the losses.
The bank statement has omitted the
items of legal requirement and surplus
for the last 10 weeks. Attention was
called also to the fact that the cash
reserves of the New York Clearing House
banks are far below the legal require
mcnt, the deficit at present being nearly
$3.50 600, 900.
That shows pretty plainly that the
banks in the large Eastern cities have
not been remiss in their duty and are
not boarding banker remarked.
The president of a leading national
bank said that no Philadelphia national
bank could be included among those at
tackled by Secretary McAdoo. 1T is only
Western and Southern banks which are
in question" he said "One Western in
stitution. | have learned, has a 10 per
cent. reserve"
Bankers here agreed in saying that the
Philadelphia banks were looking after
their customers Charles s. Calwell
president of the Corn Exchange National
Bank, said:
There was never time when a great
er spirit Of cooperation existed among
the banks. This was shown by their
pledge TO raise 800 600 to relieve the
Foreign exchange market and help the
credit situation. If there are any banks
in the United States not following a like
helpful course in facilitating business
and who are carrying more reserve than
required in keeping with good banking
practice, ] think that the Secretary is
justified in reprimandinE them a little
and that his announcement will probably
have good effect. AS far as Philadelphia
Is concerned. the Sccretarys remarks have
10 Application
As absolving Philadelphia 5 trust com
panics of any suspicion of boarding their
resources, Charles J. Rhoads, vice presi-
dent of the Girard Trust Company, called
attention to their statements made Of
their condition of August - in response
to the recent call of the Comptroller ~
the Currency. Mr.. Rhoads said the state
ments showed in most cases cash re-
serves below the legal requirements
The Secretary Of the Treasury had
to take such action as this" added MIR
Rhoads Here and there throughout the
country, presumably, banking institutions
have been found boarding their reserves
Men refused loans by these institutions
who nfterward learned that the banks
Secretary of the Treasury And the pub
licity given the matter viii undoubtedlv
prove beneficial.
But. as in all other matters. il is the
exceptional cases where the rules have
been violated that gain most attention.
An automobile iS involved i'm an accident
runs somebody down, say This fact is
given wide publicity. whereas nothing t-
said Of the thousands of automobiles
who sCrupulouSly obey the law So il is
with banks and the boarding of re-
serves.