Arizona republican., 1914-09-26
War is the business of barbarians.
 Napoleon.
An Attack Upon Money -hoarding

The effort of Secretary McAdoo to break up the hoardng of money in the national banks is pri marily directed against the banks of the soutE where for years the government has afforded facili ties for the banks to aid in the handling and nov ing of crops. This year larger sums than ever be- fore. in the shape of emergency currency, issued for the first time under the authority of the Aldrich Nreeland law. were poured into the southern banks of which appear to have made selfish of the money. They have not only not employed it the purpose intended, but they restricted credit which it proposed to enlarge, and they have raised interest rates without any other than that necessity, occasoned by the European war which compelled an advance of rates in New fork, Chicago and other cities more directly af- fected by the European financial situation The southern banks, less affected by this necessity braced opportunity pretext divert the gov ernment's purpose to aid the southern farmers, to their profit.
 The complaint of the secretary against over reaching banks does not apply in any way the banks of this section, far know to any of the banks of the Pacific The latest state ments of the national banks of Phoenix show that they hoarding money. Their holdings are cf course, above the legal reserve which has Ions been fixed by the government as a danger line
 
 We have alluded to the advance in money rates in eastern cities occasioned by the European war It is gratifying that the banks of Phoenix having occasion to raise their rates, have not done so though they might, as well as the southern banks. have offered plausible excuse for doing so Tor the first time in the history of this section money is practically cheap in Phoenix as it is in any part of the country today. Of course, this is tenn rate will ohahI be higher here than they are now, they will cer- tainy recede in eastern money a normal level when the European financial furry is over.
 There undoubtedly large hoardings in the great financial centers of the country and the rlaint of the secretary is also directed at them His means of reprisal against them, the withdrawal of emergency currency would not be quite so ef- fective against the southern banks, for propor- tionately they probably holding much less it. though early in August, after the banks of New York had voted issue clearing house loan certif- cates, they availed themselves of the provision of the federal reducing the interest charges emergency notes and of the subsequent act of congress on August 4, making easier the securing of such. notes
 Also such national banks hold government deposits could, and probably will, be deprived of them showing that they hoarding money needlessly advancing interest rates Thus, if the banks do not release a part of their large reserves, the government deposits will probably De placed where they will be more fluent
 As the secretary said in his statement of Thurs day. there is why there should be scarcity in the country at large. since there is more currency in the country than ever before and with the present relaxation of business less use for it than ordinarily.