Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1914-09-26
BOARDING DENIED
BY BANKERS HERE,
RESER YES ARELOW
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 nosng 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 exacting sxorbi-
tant interest for emergency currency.
This banker is comparatively 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
phia bank, because the banks of this
city as their statements show, are not
boarding their reserves.
A fact that throws, what seems to be a
convincing light on this matter. was men
toned by a 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
$3.50. .OC0, coo.
That shows pretty plainly that the
banks in the large Eastern cities have
not peen remiss in their duty and are
not boarding" banker remarked
The president of a leading national
oank said that no Philadelphia national
bank could be included among those at
tackled by Secretary McAdoo ct is only
Western and Southern banks which are
in question" he said. "One Western in
stltution, | have learned, has a 40 per
cent. reserve
Bankers here agreed in saying that the
i'hlladelpnta banks We're looking after
their customers. Charles $. CaIweu
president OF the Corn Exchange National
Bank. said:
Iherc was never a time when a great |
er spirit OF cooperation existed among |
tne oaEks' This was shown by their !
pledge 10 raise $4,000 OOO to relieve the |
foreign exchange market and helm the |
credit situation. If there are any banks |
IN the United States not following a Ike |
helpful course in facilitating business
and who are carrying more reserve than
required IN keeping with good banking
practice, ! think that the Secretary is
lustned In reprimandinE them a little
and that his announcement will probably
have good effect As far as Philadelphia
S concerned. the Stcretary's remarks have
40 application"
AS absolving Philadelphia 5 trust COM
'Rnics of any suspicion of boarding their
'esources, Charles J. Rhoads. vice presi-
lent OF the Girard Trust Company. called ,
attention 10 their statements made OF
heir condition of August ?7 in response
% the recent call of the Comptroller OF
he Currency, Mr. Rhoads said the state.
nents showed in most cases cash re-
eryes below the legal requirements
The Secretary of the Treasury bst
o take such action as this" added Mr.
thoads. Here and there throughout the
ountry presumably, banking institutions
laye been found boarding their reserves
ien refused loans by these institutions
Who afterward learned that th,. banLs
lad big reserves made complaint 10 INC
ecretary of the Treasury. And tho mn
city given the matter will undoubtedIy
rove beneficial.
But, as in all other matters. ii is the
Ncepuoual cases where the rules bave
cen violated that gain most attention
IN automobile is involved in an accident
uns somebody down. say. This FACT is
iven wide publicity, whereas nothing is
aid OF the thousands Of autouohiiistg
no Scrupulously obey the law So II is
lth banks and the boarding Of re-
erves,"