The Richmond Virginian. (Richmond, Va.) 1910-1920, 1915-11-27

4
own States or of the United States.
The penalty for the charging nj
usury in several States IL fine or i'm
prisonment, or both.
The records also show that as OF
September 2, 1915. 1929 nationa!
banks in twenty-five States were, by
their sworn reports. charging an aver
age of not less than 10 per cent, and
In some cases Is per cent, on all of
their loans. The sworn statements
Of the banks In one particular State
include a list OF l3i banks whose
maximum rates OF interest ranged
from Is to "a per cent; sixty-seven
banks whose maximum rate was be-
tween rs and so per cent; twenty-five
banks which charged so and 100 per
cent or more.
The sworn reports Of the banks also
show that, on September 2, 1915. 2,743
national banks. out Of total Of 1913.
being more than 36 per cent OF all the
national banks of the country. were
charging on some Of their loans 10
per cent per annum or more--in hum
dreds Of banks very much more.
Williams Has the Goods.
When 2.743 national banks In forty
two States, covering 98. per cent OF
the total area Of the continental United
States, exclusive OF Alaska, admit
under oath that they are charging 10
per cent or more on some of their
loans. and when 1922 national banks
in twenty-five States. which include
"a per cent Of the total are of the
continental United States. exclusive of
Alaska. also confess that they have
been charging on an average anywhere
from 10 per cent to Is per cent or
more on all Of their loans, is 1t not
flying IN the face OF facts to suggest
that the practice Is confined either to
a small area or to few banks?
1t is also worthy OF note that a ma
jority of all the national banks in
twenty-one States. including over
So per cent Of the total area OF the
continental United States. exclusive
OF Alaska admit that they are charg
ing as high as 10 per cent on some
loans. and majority Of all the ma
tional banks in six States, whose area
embraces more than one-fourth of the
territory of the continental United
States. exclusive of Alaska. admit,
likewise. under oath, that they have
been charging an average OF 10 per
cent or more on all of their loans
OF the 1.022 national banks which
certified under oath that they were
receiving an average of 10 per cent
more on all of their loans, two were
in Illinois, six in Minnesota, two in
Missouri. twenty-three in Georgia. six
in Florida, twenty-one inAlaba ma. two
in Louisiana. BIT in Texas, seventeen
in Arkansas. three in Tennessee, ninety
In North Dakota. twenty-five in South
Dakota, eighteen in Nebraska five in
Kansas, thirty-eight In Montana, four
teen in Wyoming, thirty-.esen in Col
orado. twenty-five in New Mexico, 400
~ y. IL,
ten in oregon, thirteen in California,
two in Utah, one in Nevada, and
thirty-three banks in Idaho.
Could Have Gotten Money Gicnpfy.
During this same period. while so
many national banks were charging
excessive rates TO customers, the Fed
erai reserve banks were offering
money freely to the national banks
in every part OF the country at rates
varying from 3 Ia to per cent. ac-
eordfng to the class of paper and the
time to maturity. There was no rea-
son why sound. well-managed banks
IN any section could not have gotten
at these low rates all the money re-
CURED to supply the needs of Gus
toners, whether farmers, merchants
or manufacturers or why the national
banks should not have loaned the
funds to their customers In every case
well within the rates prescribed by
law.
Under such circumstances, and with
these facts before you, I am confident
rnat YOU VIII revise your opinion that
this office has done. as you express
ii. "a great injustice to the great ma
5ority OF bankers throughout the couu-
try in making the statement In my
OF October 81, that
the sworn statements Of condition
of great many national banks show
that section 51s7. u. S. r. s.. against
usury, has been grossly violated by
these banks"
Concerning your statement that
many millions of dollars of money are
being loaned by banks at less than
the legal rates, may point out that
THIS is a poor consolation to those
borrowers who have been charged.
and are being charged in so many
cases. from three to ten times the legal
rate permissible under the laws OIL
the different States, and under the