Arizona republican., 1914-09-26
Publishes List of Two Hun- dred and Fifty Houses Whose Reserves He Con- siders Are in Excess of Legal Requirements
FINDS EXCESSIVE
 INTEREST CHARGED
Urges Clearing Houses to Take Initiative in Keep ing Down Interest Rates and in Extending Credits Throughout Nation
ASSOCIATED PRESS DIsPArCH1

WASHINGTON, Sept. 25.-Continu- ing his campaign against high inter- est rates and the hoarding of money by the banks, Secretary McAdoo to- night made public list of nearly 250 national banks in all sections of the country, outside of reserve and cen- tral reserve cities. which are carry ing reserves in excess of the legal requirements.
 The list is based on reports to the comptroller of the currency in an swer to his call of September 12. It shows reserves run from 25 to 74 per cent, the legal minimum being fifteen per cent.
 If" said McAdoo in the statement given out, with the list, the large amount of loanable funds that are kept from active employment, as in dicated by these figures, were invest ed in commercial or agricultural pa per or loaned on proper security. the present situation would be greatly re- lieved."
 1. McAdoo in the telegram to the New York, Boston, Chicago and St. Louis clearing house chairmen said:
 T have received no complaints about the high rates of interest which are being charged by the national banks of New York, Boston, Chicago and other reserve cities. It is alleged that New York banks are requiring their correspondent banks throughout the country to pay seven per cent for loans and to maintain a balance with the New York banks. which makes money cost the correspondent banks an equivalent of eight per cent or more.
 Specific cases have been brought to my attention where banks in cities of the south have been required to pay these high interest rates. If New York charges an equivalent of per cent interest to correspondent banks. the money cost to the ultimate bor- rover is made very high, if not ex- orbitant From all evidence before me I do not feel that to charge to s per cent interest by New York banks is justified in the circum- stances.
 q have taken the position with all the banks of the country that I will not knowingly issue additional na- tional bank currency to or deposit government funds with banks which charge excessive rates of interest or which are refusing to meet legitimate demands for reasonable credits. I have also taken the position that I will withdraw government deposits from national banks, which are hoard ing money, or restricting credits through the maintenance of excessive reserves. New York banks generally have not been hoarding money or maintaining excessive reserves, but they appear to be charging higher rates of interest than conditions seem to justify I am using every just ef fort to persuade the banks through out the country to extend reasonable credits at reasonable rates of interest to meet existing unusual conditions created by the European war, which. if dealt with in a helpful spirit by all concerned, should be quickly ameliorated I should like to see New York banks take the lead In estab- fishing and maintaining moderate rates of interest for accommodations as their example always has large influence upon the banking action and sentiment in the country. If this course is pursued by the leading banks of New York and other great money centers. real public service will be rendered and the return to