The herald and news. [volume] (Newberry S.C.) 1903-1937, 1914-09-29
COMPEL NATIONAL
BANKS TO DIVIDE
STATE BANK EXAMINER so URGES
MADOO
Mauldin Declares State Banks OF South
Carolina Are "ShOWing Splen-
did Spirit
TIE State. 2Sth.

did spirit.
TIE State, 2Sth.
Ivy NJ. Mauldin, OF Pickens, State
bank examiner, has urged Secretary
McAdoo to consider whether national
banks in tbs State with which tle
treasury department deposits govern
n1ent funds may be ''positiyely re-
uuired to divide these funds with the
State banks, BY way Of loans or other
wise, upon reasonable terms, thereby
placing the funds in channels through
which the larmer and manufacturer
can be readily reached. .
Mr.. Mauldin informs Mr. McAdoo,
in response to an inquiry, that there
is anything else but boarding of
funds by State banks" These institu-
tions, ne says, are manifesting a
splendid spirit in tbs crisis
Mr.. Nauldin has telegnaphed as
follows to the secretary of the treas
ury:
Your wire received. This Office
will be glad to cooperate with your
department in any manner looking to
preventing the existing scarcity of
money in the South, or such scarcity
as may be threatened. l have not
called for a statement from State
banks since June 80, but for past two
months examiners from This Office
have been making examinations Of
State banks practically all over the
State and reports of these examina-
tions indicate anything else but a
noarding of funds by State banks.
Have Loaned Literally.
The fact is, State banking institu-
lions in South Carolina have not only
loaned practically all available funds
on hand but have borrowed heavily
from correspondents in money centres
and have loaned these funds also, con-
sequently they are now strenuously
eXerting themselves to get extension
of maturities on their own obligations
to New York bankers and elsewhere
until such time that their customers
can obtain a fair price for the pres
ent cotton crop. Banks in money cen
tres have shown a disposition to be
liberal respecting extension Of ma
turtles, and their -liberality is tenn
porarily relieving existing conditions.
I feel sure that theState banks Of
South Carolina are not boarding
funds, but most Of them have gone
to the other extreme and have loaned
very closely, expecting to be in posi-
tion by this time to build up their re-
serves and meet their own obligations
through the marketing OF the cotton
crop.
Il respectfully suggest that, if some
plan could be devised, or some direc-
tion from your authority could be in
dicated, whereby national banks in
this State with which you deposit gov
ernment funds could be positively re-
quired to divide these funds with the
State banks by way Of loans or other
wise on reasonable terms, thereby
placing the funds in channels through
which the farmer and manufacturer
can be readily reached, the govern
ment money will thereby speedily ac-
complsh tie purpose 1or which it is
deposited. The State banks Of this
State are manifesting splendid spirit
in this crisis by cooperating as far as
they, can with the farmers in an ef-
fort to market the present crop grad
ua1ly and in such a way as to secure
reasonable prices.
eff your department can devise
some practical method by which gov
ernnent funds under your supervision
may reach the State banks in this
State, l feel that such funds will be
quickly distributed at reasonable rates
and in such way as to meet the legiti
mate demands of business"
McAdoo to MauIdin.
Tie telegraphic message from Sec
retary McAdoo to which the foregoing