The Manning times. [volume] (Manning, Clarendon County, S.C.) 1884-current, 1914-09-30
CRITICIsE BANKS
M'ADOO SAY MONEY SCARITY is
CAUSED By BOARDING

1 IA ADSV SA1 mOsAA NViAA4S AS
CAUSED By BOARDING
| CALLS FOR STATE help
Asks Banking Superintendent Of
South Carolina to Report Reserves
of State Banks, Their Rates of In
terest on Existing Loans and New
Business.
| The anti-money boarding campaign
launched by Secretary McAdoo
against national banks, particularly
| those which have received federal
crop-moving money or which have
taken out emergency currency, has
| broadened to take in State institu-
tions.
| Mr.. McAdoo sent a telegram to
superintendent of banking in each
state announcing the restriction Of
credits by national banks and the
high interest rates charged, and ap-
peaGng for all available information
regarding State banks and trust COM
panies. He declared that if banks
will be persuaded to use resources
intelligently the present situation will
be greatly relieved.
It was understood that list Of
banks which are piling up reserves
or boarding money will be made pub
lie and that, as announced before,
the practice will be kept up as long
as there is occasion for it. Mr.. NC
Adoo's telegram to the state bank
ing superintendents follows:
Reports now being received by
the comptroller of the currency from
national banks throughout the coun-
try indicate that a money scarcity is
being occasioned in large measure be-
cause of the boarding of funds by
many national Janks, which are car
rying reserves, in some cases two or
three times as great as required by
law, and also that credits are being
restricted and excessive rates of in
terest are being charged to custom
ers.
There is at this time more cur
rency in the country than at any time
in its previous history, there having
been issued through the treasury de-
partment since August 4 more than
s300,000,000 additional national
bank currency, which, together with
the relaxation in business, should
create an abundance of loanable
funds.
This department will withdraw
government deposits from banks
found to be boarding money and
charging excessive rates of interest
and will redeposit them with banks
whose funds are being loaned at rea-
sonable rates to meet the legitimate
demands of business and for moving
the crops.
This department would like very
much to have your cooperation in
its efforts to remedy these unsatis-
factory conditions, and respectfully
asks if it would not be possible for
you to secure from all state banks
and trust companies in you- state
statements which will show their cash
reserves as of recent date, the rates
Of interest which they are charging
on existing loans, and the rates which
they are demanding for new accom-
moGations, and give this department
the benefit of the information disclos-
ed by these reports.
"It is confidently believed that if
all banks can be persuaded to use
their resources intelligenly and con-
siderately and at reasonable rates of
interest to meet the legitimate de-
mands in their respective communi-
ties, the whole situation can be great
ly relieved and business restored to
satisfactory, if not an entirely nor
NAL, basis. Kindly answer"
In connection with the alleged re-
fusal of national banks to extend
credits Secretary McAdoo issued this
statement:
Senator Lea of Tennessee informs
ne that the state of Tennessee has
S1,600,000 Of short term notes, ma
turing October L; that the state de-
sireS to renew or extend S1,400,000
of these notes; that commission
representing the state has been in
New York for some time trying to
affect this loan, but without success.
1T is preposterous that one of the
great states OF the union should find
it impossible to procure from the
banks such comparatively small
amount of money. Senator Lea in
forms ME that he was going to New
York for the purpose of joining the
commission in it's efforts to secure the
needed loan.
IF Senator Lea and his associates
are unable to procure from banks in
the city of New York or elsewhere,
and upon reasonable terms, the de-
sired loan, will myself see if banks
can not be found to take up this
loan for the state of Tennessee on
the 1st of October next, upon reason