Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1915-09-24
QUESTION OF INTEREST RATES
Information Declared by Mr.. Harding
Of Great Importance.


Of Great Importance.
In his address before the bankers of
Der Of the Federal reserve board and
the southern representative thereon,
himself banker Of skill and ex-
perience, condemned in earnest ex-
pressions the actions Of southern banks
in charging the high rates Of interest
prevailing.
Mr.. Harding's figures are correct,
being obtained from the Office Of the
all national banks make their reports
under oath. These reports show rates
Of interest in southern banks having
maximum range of 6i per cent to
over 100 per cent, with average rates
prevailing in several states ranging
from 6 per cent in North Carolina to
10 per cent in Texas. No doubt the
maximum rates are very exceptional,
the real condition Is reflected in the
average.
The South Carolina banks seem not
quite 80 high as Texas nor so low as
North Carolina In North Carolina
the prevailing rate Of interest may be
stated as being per cent. In South
Carolina per cent. Why this diff
ference? AS Mr.. Harding asked: "Is
1t because the men Of North Carolina
are more shrewd than in other south
ern states, or is 1t because Of the
drastic usury law in North Carolina
limiting rates to per cent?"
Which Is It? Are the bankers Of
North Carolina more generous and
public spirited than those in South
Carolina and therefore more willing
to accord reasonable rates Of interest,
or are the men Of North Carolina, the
borrowers, whether they be business
men or farmers, more shrewd and ex-
acting than the borrowers Of South
Carolina? II 1t be answered that the
character Of the people of the two
states Is much alike, that the bankers
Of North Carolina are as exacting as
rowers of South Carolina are no less
shrewd than those of North Carolina,
the conclusion Is inevitable that the
reason why low rates prevail in the
adjoining state is because that state
has q. usury law limiting the rate Of
interest to 6 per cent, whereas in this
state the law limits the rate to per
cent.
We have been told many times, and
1t Is frequently argued in the legisla-
ture. that money Is a commodity which
should command whatever rate Of in
terest that can be obtained therefor.
South Carolina has rejected this view
to the extent that she has limited the
rate Of interest to per cent. North
Carolina has gone to q point farther
and limited the rate to per cent The
people Of that state obtain money on
their agricultural products and for
business purposes at rate Of interest
which at least gives the producer and
business man q chance to live. Can
we look forward in this state to volun-
tary action on the part Of our banks
limiting rates Of interest to the rates
permitted in North Carolina, or Is 1t
advisable that there be legislation in
this state as in that state?
The action Of some Of our banks
which have already advertised their
willingness to advance to producers Of
cotton properly stored at q rate Of 6
per cent is both interesting and COM
mendable. This action indicates broad
ness Of view, which is encouraging.
It is a bad condition when the banks
are prosperous as the result Of high
rates Of interest and the community
suffering for the same cause.
It would be well II a remedy can
be found without legislation. 1t can be
If all banks are as wise as some few
that have proclaimed their purpose Of
lending to the farmers at per cent
to enable them to market their pro-
duct gradually.-Greenville Piedmont.