The Anderson intelligencer. [volume] (Anderson, S.C.) 1914-1917, 1914-09-25
BOARDING OF MONEY AND
EXCESSIVE RATES ARE
CHARGED
TO PUBLISH NAMES
Secretary Will Make Public Names
of ALI National Banks Violating
the Order
NDy Associated Prcss.)


Washington. Sept. 22. 2.-Secretary
McAdoo tonight adopted stringent
measures to urge national banks to cx-
tend Legitimate credit and to charge
normal interest rates on loans He
tclcgrnphcd to ten national banks in
| hc four reserve cities In the South
| .hnt their requests for additional crop
| moving funds from the federal gov
ernmcnt could not be granted this
time. nEd made II clear that his ac-
tim WIS taken In connection with re-
ports n excessive interest rates and
| restriction Of credits.
| In II statement made public with the
telegram MIR. McAdOo declared there
was an extraordinary boarding Of mo-
! ncy by banks throughout tho country
| md p:iirg up or reserves without oc-
casion. lie said representations 20
The comptroller OF the currency show
I'd money boarding has teen carrie
ny banks To an extreme degree. an
| announced he expected to focus nttcn-
lion upon the guilty banks by issuing
daily list Of those with excessive re-
serves.
Although the federal government has
no power over the state banks or the
trust companies the secretary explain
ed state bank sucrintendents would
he asked to furnish available informa-
tion on money boarding in such insti-
tutions. He characterized noney
boarding by banks as the agency most
likely to impair confidence and to In.
lure business.
Tho statement follows in pnrt:
Il have decided not to deposit the
second instnllment OF crop money with
your bank al this time. You can, how
ever. III you desire. withdraw one half
OF the securities deposited by you and
use them as security for the issue
Of additional currency If you make ap-
plicatfOn therefor.
Il am Informed that many banks
III your state are refusing to make
loans for crop moving purposes. and
mat IN many cases good loans arc re-
jeoted or unreasonable rates of intel
est are asked. am also informed
that many bhnks which have taken out
additional currency are refusing to
use It deshite tho greet demands for
money trust you are not doing Il.
"1 shall withdraw nIl government de-
pcsits from banks charging excessive
rates OF interest, or which refuse rea-
sonable accommodations and shall re-
fuse to issue so-cailed emergency mo-
ney to banks which are not making use
OF 1t on reasonable terms for the bene-
nt or the business community - It Is
essential In the present situation, that
everybody pull together In an unsel-
nsh spirit for the good OF the coun-
try. ~
"The reports of national banks now
being received by the COMPTROLLER of
the currency In response to his call for
Q statement OF this condition as of
September 12, indicates an extraor-
dinary boarding OF money by many ma
tional banks. There is neither occa-
sion nor necessity for It.
intend to begin issuing daily a
list OF the banks which are boarding
money by maintaining excessive rcser-
yes. : - =
'The reports o7 national banks nre
public property anyway, and while
they have been published in their re-
snecttye communities the Significance
or their statements Is not generally
.understood.; My purpose is to focus
attention (, pon the excessive reserves
carried by those banks. for the reserV
Indicate whether or not the /. banks
are using their full resources for the
Erelei and accommodation OF business
their respective communities, @ ~.
~ is a matter of extreme regret
that the government has NOT the
power. to- exact ) Similar sfatementa
from the state hanks and trust cont
panies, for am aaftsf I'd that manvs
atute banks and trust companies. like
many national Banks, are lloardIne
money and refusing to extend leeifi.
mate credits. shall ask the sUner-
tntendents OF banks in the yarious
states to cooperate with the govern
rnant by supplying reports Of the con-
tlitlm OF. the state banks aud trust.
companies. lz 80 4;
Tile hanks that are boarding money
+aiiould discontinue It. Such action.
more than any other agency, tends ,to
Impair confidence and injnre sb,,s,.
ness IL all of the banks OF the coS,n-
try under. the present circuniAfancasS
By extending legitimate credits. at
Reasonable rates K of fntAreaf's thei
Imoat Hart rtnMs iofr our ;..mS,:,..s. S.-,..!:!
|pstfiptiyh disappear. M IA s. 3 B
The ecretaryss statement WIS sIis..
sued after5 the ederaf reserve board
Of which; he ais' now an. ex-offlcfo mems
Iber.s has listened to several persons
for pieasiof assistance from the com.I
Eptitteas ~ forty of ,the farmers lnionIs
which CAME to Washing ton TO urge liis
rect federal Sloans 10 The cotton rross
I issTAss REP0nT ste ssEs i
e aris, se.R as The Iiayaa Agency;