The daily telegram. [volume] (Clarksburg, W. Va.) 1901-1926, 1915-11-27

twelve per cent interest. In the
same number of states high rates
may, under the law. be charged by
| special agreement. In nine states, It
tis egaltby special contract to charge
las high as twelve per cent, but rates
in excess thereof are usurious.
While seven national banks in
West Virginia are charged with
Iusury. that Is nothing compared to
the record of Oklahoma which tops
| the list with 287 banks who admit
charging as high as twelve per cent.
Texas comes next with 1865; forty
eight in South Dakota forty-five In
Idaho, and so on. with New York only
eight and Ohio only four. The prfn-
cfpal yiolators are southern and
western banks. ;sss5 III &
It Is admitted by .247 banks in
lthirty-six states covering seventy-fives
per cent; of the total area Of the Unit
led States that they have charged on
some OF their. loans rates in excess
OF the rates permitted even by spe-
.cial contract by the laws OF their own
or Of the United States The penal
ty for usury in many Of. the states Is
fine or imprisonmentsor both. THE.
statement shows that i. 022 national
banks in twenty-five states were, by
their own sswornr reports, charging not
less than an average OF twelve per
cent and in some cases as high as
eighteen per cent on all their loans.
I'm one state alone 131 banks report
Ian average interest rate of fifteen per
cent to twenty-fo per cent and on
up the rate scale until sc is shown
that .twenty-six Of these banks charg-
led a maximum rate Of 100 per cnt
or more: Two thousand. seven hum
bred and forty-three national banks
out Of a total OF 1913, being more
than thirty-six per cent OF all the
national banks Of the. country, were
charging (Sept. 2,,1915) on some Of
their loans ten per cent. or more
In hundreds Of banks very much
more..,'
OF the /. 022snational banks admit
ting that they were receiving an aver
age Of ten per. cent or more on oil
their loans. the state Of West Virginia
isn't named in that particular list.
when 2,,743 banks in forty=two
states,,n continues the Williams state
|ment. covering ninety-eight per cent
of the total area Of the continental
United States, exclnsive OF Alaska adj
NIT under oath that they are charg-
ing ten per cent or more on some Of
their loans, and when II 22 national
banks in twenty-five states, which in
|cludes seventy-four per cent Of the
continental United States. exclusive
of Alaska, also confess that. they have
been charging on an average Of any
where from ten per cent to eighteen
per cent or more on all OF their loans,
is it not flying In the face of facts to
suggest that the practice Is confined
to "a small area or to q, few states.
The statement calls attention to the |
fact that during the period that these
banks confessedsto charging excessive
interest rates the federal reserve
banks were Offering money freely tol
the national banks at rates varying
from three and one-half per cent to |
i've per cent. according to the class
Of paper offered and the time OF ma
turity. There was no reason, says
the comptroller, why sound, we'll
managed banks in any section could
not have gotten at these low rates all /
the money required to supply the
needs OF customers, 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 {. f a.
From all OF which facts and figures
Mr.. Williams submits that he was WE'LL
within the truth when he made the,
statement that the; alws against usury
had been grossly violated, p which
caused the letter requesting correc-
ton to be sent him by a committee
of the American Bankers Association.
In conclusion the statement sug-
gests the sdesirability or requesting
national banks to print in their state
ments hereafter, the maximum rates
Of interest charged and the amount
of money they may be lending at
rates in violation of section 5,197, re-
latings to usury I" II this be: done: will
not the public learn, fairly and right
", which banks. in the matter Of in
terest charges. are conforming to the
law and which are mot? Such publi-
cation could do no injustice to any
bank that honestly tries to keep with
in the laws, which all bank directors
have solemnly pledged themselves to
observe. 50 -s.,. :