Arizona republican., 1914-09-24
Secretary McAdoo Adopts Stringent Measures to Urge National Banks to Extend Credit and Charge Nominal Interest LIMITS CROPS
 MOVING FUNDS Denies Requests for Addi- tional Funds From Gov ernment Until National Banks More Fully Utilize Reserve Funds.
ASSOCIATED PRESS pIsPATcH1


 WASHINGTON, Sept 23-Secretary McAdoo tonight adopted stringent measures to urge national banks to extend legitimate credit and charge normal interest on loans. He tele- graphed ten national banks in four reserve cities in the south that their requests for additional crop moving funds from the government would not be granted now and made clear his action was taken in connection with reports of excessive interest rates and restriction of credits.
 In statement made public with the telegram Secretary McAdoo de- clared there was extraordinary hoard ing of money by banks throughout the country piling up reserves with out occasion. He said reports to the comptroller of the currency showed money hoarding is being carried on by banks to an extreme degree, and announced he expected to focus at tention upon the guilty banks by is suing a daily list of those with ex- cesSive reserves.
 Al has no power over state banks and trust companies. the secretary ex- plained, state superintendents will be asked to furnish available information on money hoarding in such institu- tions. He characterized money hoard ing by the banks as an agency most likely to impair confidence and injure business.
 The statement in full follows:
 "I have decided not to deposit the second installment of the crop nov ing funds with your bank at this time. You can, however. if you desire. with draw one-half of the securities de- posted by you and use them as se- curity for an issue of additional cur rency if you make application there fore. I am informed that many banks in your state are refusing to make any loans for crop moving purposes. in many cases good loans being re- jected or unreasonable rates of inter- est asked I also am informed that many banks which have taken out additional currency are refusing to use it in spite of the great demands for money I trust you are not do- ing this I will withdraw all govern ment deposits from banks charging excessive rates of interest or Wnlch refuse reasonable accommodations, and I will refuse to issue so called emer- gency currency to banks which are not making use of it on reasonable terms for the benefit of business community. It is essential in the present situation that everybody pull together in an unselfish spirit for the good of the country. l. of course, ex- pect the banks to make a reasonaple charge for accommodations. My point is the charge must be reasonable as the co-operation and help Of the treasury will not be extended on any other basis
 Reports of the national banks now being received by the comptroller or the currency in response to hls call for statement of conditions as or September 12, indicate extraordinary hoarding of money by many national banks in various sections of the coun- try I am astonished so many na- tional banks are pursuing a course 50 contrary to the public interest and so indefensible from any point of view. There is neither occasion nor neces- sity for it.
 Full reports have not yet been re- ceived by the comptroller but they are coming in daily I intend to begin issuing a daily list of banks which are hoarding money by maintaining excessive reserves, in order that the country may know how they are per