The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1914-09-24
Secretary of Treas sury
Threatens Severe Discipline
If Practice Continues.
GOOD LOANS REFUSED
WITHOUT NECESSITY
kilograms Sent to Ten Banks in
Four Reserve Cities
in South.
UNREASONABLE RATES ASKED
Daily List OF Institutions Maintain
ing Excessive Reserves To
BE Published.

WASHINGTON. September 2S-Sec-
rotary McAdoo tonight adopted string
sn, measures TO urge national banks
10 extend legitimate credit and charge
normal interest rates on loans. He
'elegraphed ~ ten rational banks In
tho four reserve cities in ;he South
iiat their requests for additional crop
moving funds trc~. the Federal gov
crnmcnt would not DO granted at this
time, and made IL clear that hts action
was taken In connection with reports
~ excessive interest rates and re-
striction OF credits.
~ a statement made public with
iie telegram Mr.. McAdoo declared
'hcre was an extraordinary rhoardiuu
of money by banks throughout tho
country. and piiing up OF reserves
without occasion. He said reports 10
TN" Comptroller OF the Currency
showed money boarding has been car
rlcd by banks to an extreme degree.
and announced he expected to focus
Issuing daily list u those with cx-
Nc>SIEc reserves
Although the Federal government
has no power over State banks or
trust companies. thc Secretary ex-
planned. State bank superintendents
Npbl' pc stShtu 10 IuEIlSu stNaI Dle
information OIL money boarding In such
institutions. He characterized money
boarding b. banks AZ the irrcnc most
likely 10 impair confidence and injure
business.
TELI:GIiANS SENT
TO BANKS ~ SOUTH
secretary McAdoo gave out the fol-
owing telegram, which lie sent To ten
national banks In four reserve cities
IN the South:
have decided not 10 deposit the
second instaliment of cron-moying
fGnds with your bank at this time.
You can. however, IL you desire. with
draw onehalf OF the securities de-
posted by YOU. and use them rs Sc
rfrsty for the Issue OF additional cur
roncy II YOU make application therefor.
am Informed that many banks in
ycur state are refusing to make any
loans for crop-lnoving purposes. and
that in many cases good loans are
rejected or unreasonable rates OF IN
'ercsts are asked. | am also Informed
that many banks which have taken out
additional currency are refusing to use
IL III spite Of great demands for money.
trust you are not doing this. !
snail withdraw all government do
posits from banks charging excessive
rates OF interest. or which refuse
reasonable Recommendations, and shall
refuse TO issue s0-called emergency
currency 10 banks which are not max
ing use OF d, on reasonable terms for
the beneht Of the business community.
u is essential in the present situation
that everybody pull together in an
unselish spirit for the good OF the
country. ]. OF course, expect tile banks
20 make reasonable charge for ac-
comnloda tions My point is tina; the
charge must he reasona BILE, as the CO.
operation and lfclp OF the Treasury will
not be extended on any other basis"
The reports of national banks" said
secretly McAdoo. nov being received
by the Compt roller OF the Currency in
response to his call for "A statement
Of their condition as OF September 10
indicate an extra aordinary boarding of
money by many national banks in
various sectionH of the country | am
astonished that so many Of tho national
banks are pursuing a course so con
;rary to the public interest. and so
indefcnsihlc from any point OF vicw.
There is neither occasion nor necessity
for It,
no ISSUE LIST OF hanks
NOW BOARDING MONEY
Full reports have not yet been re-
ccived by tho comptrollcr. but thy are
coming in daily. | intend to begin
issuing daily Il list of the banks which
are boarding money by maintaining
excessive reserves. in order that the
country may know how they are per-
forming their public duties. The re-
UOltS VI utnkS arc PUBIC
property anyway, and while they have
been published in their respective conf
nInnftics, tho Significance Of their state
mcnts IL not generally understood The
public does not know how to analyze
them My purpose is to focus at
tcntiou upon the excessive reserves
carried by those banks, for the re-
serves indicate whether or not the
banks are using their full resources for
the ,relicf and accommodations OF bust
ness in their respective communities.
1T is matter of extreme regret
that the government has not the power
to Xact similar statements from the
state banks and trust companies
throughout the country, because am
satisfied, from certain reports which
have come to me, that many Of the
state banks and trust companies, like
many OF the national banks. arc hoard
ing money and refusing to extend le-
Ultimate credits. I shall ask the super
intcndant OF banks in the various
states 10 cooperate with the govern
.ncnt by supplying reports of the con
dition of the State banks and trust
ccrnpa MES.
The banks that are boarding money
should discontinue ii. Such action
more than any other agency, tends to
impair confidence and injurc business
IT all tho banks of the country will
do their duty in the present circuin-
stances by extending legitimate credits.
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