South Bend news-times. (South Bend, Ind.) 1913-1938, 1914-09-24
M ADOO INSISTS
BANKERS GIVE
FARMERS CREDIT
Secretary Demands Fair Deal
in Distribution of Emergency
Currency When he Hears Re-
ports of HoId-Up.

WASH N'rID4N. sept. L4.--lu re-
msrkable statement issued by Secy. Of
the Treasury McAdoO TODAY ne threat
ems severe discipline for the national
banks which may hoard money re-
fuse reasonable accommodations or
charge excessive rates OF interest. He
boarding money. A daily list Of the
banks maintaining excessive reserves
will be published by the treasury de-
partment in order that the public may
know the banks which are keeping
money out OF circulation.
Secy. McAdoo gave ont the follow
ing telegram which he sent to ten ma
tional banks in four reserve cities in
the south:
Il have decided not TO deposit the
second installment OF crop moving
funds with your bank at this time.
You can, however, if you desire, with
draw one half Of the securities depOs-
tied by you and use them as security
for the issue Of additional currency
IL YOU make application therefor. L
am informed that many banks in
your state are refusing TO make any
loans for crop moving purposes and
that in many cases good loans are re-
iected or unreasonable rates Of inter
that many banks which have taken
out additional currency are refusing
20 use il in spite Of great demands
for money.
Charge UsuriOuS Rates.
Il trust you arc not doing this. /
shall withdraw all government depOs-
its from banks charging excessive
rates Of interest, or which refuse Tea-
sOnable accommodations and / shall
refuse TO issue sO-called emergency
currency to banks which are not maxi
ing use OF il on reasonable terms for
the benefit Of the business cOmmun-
ity 1t is essential in the present sit
uation that everybody pull together in
an unselfish spirit for the good of the
country.
Il. of course. expect the banks to
makea reasonable charge for accom-
mOdatiOns. My point is that the
charge must be reasonable, as the CO.
operation and help of the treasury
will not be extended on any other
basis.
Banks boarding Money.
The reports of national banks"
said Secy. McAdoo, now being re-
ceived by the comptroller OF the cur
rency in response to his call for a
statement OF their condition as of
Sept II indicates an extraordinary
boarding of money by many national
country. / am astonished that so many
of the national banks are pursuing a
course so contrary to the public in
terest and so indefensible from any
point OF view. There is neither occa-
sion nor necessity for it,
Full reports have not yet been
received by the comptroller, but they
are coming In daily. ] intend to begin
issuing daily a list of the banks
which are boarding money by main
tanning excessive reserves, in order
that the country may know how they
are performing their public duties.
The reports of national banks are
public property anyway and while
they have been published in their re-
spective communities, significance of
their statements is not generally IN
derstOOd The public does not know
how to anaiyze them. My purpose
is to focus attention upon the excess
sive reserves carried by those banks
for the reserves indicate whether or
not the banks are using their full re-
sources for the relief and aCcommO-
dation of business in their respective
communities.
State Banks Are Immune.
1T is a matter Of extreme regret
that the government has not the pow
or TO exact similar statements from
the state banks and trust companies
throughout the country, because 1 am
satisfied from reports which have
come TO me that many of the state
banks and trust companies, like many
of the national banks are boarding
money and refusing TO extend legiti-
mate credits. | shall ask the super
fntednet Of banks in the various
states TO cooperate with the govern
ment by supplying reports of the con-
dition OF the state banks and trust
companies.
The banks that are boarding mon
ey should discontinue it, Such action
more than any other agency tends "a
impair confidence and injure business
NJ all the banks OF the country will
do their duty in the present circum-
stances by extending legitimate cred
its at reasonable rates Of interest the
most serious OF our difficulties viii
promptly disappear The financial
condition o. the country is sound
throughout The most essential thing
now for our prosperity is the prompt
conduct Of business on a norma
basis"