The Richmond Virginian. (Richmond, Va.) 1910-1920, 1915-11-27
Gives Data on Which Demand
Was Made That Interest
Laws Should Be Obeyed
ONLY FIVE BANKS
IN VIRGINIA INVOLVED
Declares More Than Twelve
Hundred Banks as Late at
September 2 We're Charging
From Ito Over 90 Per Cen

Washington, D. c.. November 2s.-
n q circular letter to national
banks dated October I. 1915, in
which the Comptroller of the Cur
sncy called the attention OF national
panks to the usury laws and to the
Mathis taken by the Rational bank d.
ectors. he stated that great many
Iationaf banks had grossly violated
he laws against usury.
The executive committee OF the Ma
ional Bank Section OF the Ameri-
m Bankers Association, la a let
pr to the coinptroller. dated Novern-
yer Is, 1915. complained that the
omptroiler's statement above re-
erred to had created bad impress
Hon and had done gresf injustice
b the great majority Of bankers and
equested the comptroller 10 modify
nd correct his statements on the
ubject
ComptroIfcr's Reply.
The comptroIier's reply, dated No
ember %. 1915. Is as follows:
effice of-the Comptroller If Lha
Currency.
Washington, November %. 1915
70 the Executive Committee or the
National Bank Section OF the
American BANKERS Association.
New York City.
Gentlemen;
Yeur letter Of the 5,h instant
as been received and considered.
You inform me thai fun meeting
your committee. held in New York
b the 18th instant took up for con-
der:ttion circular letter addressed
y this office. under date of October
b, 10 all national banks, calling the
ttenfiun OF the banks To the laws
gainst usury and TO the oaths taken
national bank directors to Obj
Srve the statutes OF the United States.
he circular letter also stated that
be records of this Office show that a
reat many national banks have
rossiy violated the usury laws,
You inform me that your commit
be unanimously adopted a resoiu-
on declaring II TO be the opinion OF
,s committee that the usurious prac-
ices complained Of are confined only
eume sections of the country and
re- not general" ana you ask this
nee TO make such notifications
nd corrections of the statements en-
raced in that letter as will do JUS
lee 70 the great number of banks
hitch have not violated the statutes
Mating to rates of Interest"
Ny statement that IA great
many national hank. have gross
" violated section 5fes. Z. 5. r.
4, Agninst usury.' IL literally
&uA and stands In NO need OF
correction. 1t Is a pleasure. how
ever. 70 me to be able to state
tlaas tho records show that "a
nrRc majority Of the national
Ane1kn Of the United states. ac-
oordine 20 the latest reports.
- keeping their interest rates
v1ethtn the maximum figures
NnEuaitted by law.
vas sincerely gratified to be In a
na1tion to announce in pubic al
ess to bankers a few weeks ago.
hat 4 majority OF the national banks
sre oheying the law In this resnecr,
At the Same time, there are Y
reat many national banks which
I'VE violated the usury law In the
1T. but which. am confident. will
- again do so. now that the pro-
Ions OF this law have been made
nin to their officers and directors
~ their attention called to their
kfhs OF once.
Moro Than f.2OO Included.
A the records of this once show
- more than 100 national banks,
Guiding banks In forty-one States,
20 charging on some OF their loans,
late AZ September 2. 1915 ~ per
- cent per annum interest or more
md In many cases more than 90 per
nt), It can hardly be claimed that
70 charging OF excessive rates OF
Ifarest n confined to either few
inks or a few localities. In twenty
-seven OF these States. embracing
hnroxsmatelv SO per cent OF the
~ area of the continental United
hates. exclusive Of Alaska, the rate
tNf1 per cent or more is, under any
fcumata noes. usurious,
The location OF the national banks
harging on some loans IL per cent or
ore was. as stated IN my recent
ublic address above referred to. as
BLOWS: Nine in New York. SIX IN
pr + svtvnnia two IN Maine: three III
Massachusetts,. five in Virginia. seven
West Virgin six each in florida
IA Louisiana s,xtv-six In Georsia,
s.s two In Alabama. 1853 In Texas,
zen IN Arkansas. seventeen in Ken
cky twenty eight in Tennessee four
Ohio, eight In Indiana. forty in
l.no.s seven In Iowa nineteen In
lssouri, sixty-n'ne in North Dakota,
rty-eight In South Dakota, twenty
81 In Kansas forty-six in Montana
,enty In Wyoming s'xtv-threc In
dorado. thirty-three In New Mexico
II IN Oklahoma TWENTY-FIVE in
"a shinRton, forty In California.
rty-iive in idaho. eighteen in Utah
mt in Nevada, and three each In
irhiran, Oregon. North Carolina
"a Arizona In New JERSEY District
Columbia, Nebraska. Minnesota
" south Carolina only two banks In
IN admitted charging IL per cent
higher. and only one in Maryland
The only States where there were
national banks which admitted IN
q oath in their Statements .of Sep
nher .. 1915, that they were charg-
ICSutinusI on Sixth PaSs.)