Evening star. [volume] (Washington, D.C.) 1854-1972, 1915-10-06
SCORES HIGH INTEREST
+ OF NATIONAL BANKS
Controller Williams Defends Efforts
to Force Reduction, Before
Kentucky Financiers.

FRANKFORT. KY. October e-John
Shelton Williams. controller Of the
| currency. defended today before the
Kentucky Bankers Association his
efforts to force national banks to re-
duce their interest charges to borrow
ers during the days Of stress in tho
financial and business world which fol-
lowed the outbreak of the European
war
OF the 1918 national banks in the
country, Mr.. Williams declared. 1920
have sent in detailed reports show
ing that they have received an aver
age OF 10 per cent or more on loans.
He. cited. without giving names. in
stances In which the rate ran up to
40. so. 1000 per cent. In one case
that OF woman who borrowed $3.50
charged 81. or 2.40o per cent.
These banks said Mr.. Williams.
ARE authorized by the government
To an extent at least. they have be-
and the protection Of the great Ameri-
can nation-and lending $3.50 for six
days to washerwoman or a laborer's
J or farmers wife at 2,4oo per cent.
"As somebody once said of druggists
profts on powdered chalk. it gets out
Of the range of percentage into lar
ceny from the person. Three hundred
per cent will make anarchists s lently
faster than all the I. W. W. apostles
who can bawl. When national banks
point and deprive toll Of its just re-
ward, and stimulate resentment, we
have prepared and fertilized the soil
for fearful crop of disaster. We can
not persuade ourselves or make others
believe that it is right or safe for
banks to charge 100 per cent q year,
while the producing people about them
are kept poor. I know of such banks.
do not intend to stand for them II
can help it. The country will not
stand for them"
Invites Senate Inquiry.
Mr.. Williams said he invited Senate
investigation of his actions. or the con-,
duct Of his office.
A majority Of the national banks ARE
now conducting their business on
high and honorable plane. and are
charging fair and reasonable rates on
loans." Mr.. Williams said. He predict
ed that a we'll thought-out. carefully
constructed. conservative system Of
rural credits for the development of
agriculture would come presently, and
said that in the meantime he expected
to. do all possible to protect borrowers
of all grades against rapacity. He
further to improve conditions.
Mr.. Williams reviewed the financial
situation through the first year Of the
European war. He said that this coun-
try had not only avoided financial crash.
but had wiped out the floating debt of
$3.50, 100000 due to Europe January 1,
1915, and absorbed between $50 and
1000 millions Of dollars Of American
securities that were held abroad, and
is now in condition to help finance the
whole world at the conclusion of the
war.
The income Of the people of the
United States over the expenses of liv-
ing and available for DEVELOPMENT and
dollars per annum, Mr.. Williams said,
and he placed the total at 10000 mil
lions a year. He said the total wealth
of the United States is now estimated
lions as tina total wealth Of Germany
in 1911; IS Billions the total wealth Of
France in 1908, and 10S billions, the
wealth of the whole British empire. in
Australia, India and South Africa. by
the latest available computation. that
of 1908.
Advocates Caution.
Mr.. Williams cautioned his hearers
that the time may be near when this
nation will need its resources and
when even our unprecedented and I'M
equaled strength will be taxed"
AT the close of this great war;" he
said, "it will be our task to finance the
world. We may be the one afluent
power The strain on US will be enor-
nous. We may have to bear. too. the
burden of providing for our own de-
tense. We have learned from observa-
ton and from comparison forced upon
US how inadequately prepared we are.
We are asleep among hungry and arm
ed nations in a home crowded with gold
and food, with our doors wide open and
not even a gun on the premises. We
will have to take care of ourselves and
of countries, governments and peoples
abroad. The one sure foundation, not
only of our financial and business
structure. but for the government and
civilization itself, for safety in war and
growth in peace. is in the prosperity
and contentment Of the individual"
Controller Williams justified federal
Regulation Of rates Of interest on loans.
| In doing SO he arraigned Senator
Weeks. who had denounced such reEu-
lation.