The Barre daily times. (Barre, Vt.) 1897-1959, 1915-10-06
WILLIAMS DEFENDS
THE EFFORT AT
LOWER INTEREST
Comptroller of Currency Cites Instances
Where Interest Charges Went to
Fabulous Reaches.

Frankfort, KY, Oct. 6.--John Sketol
Williams, comptroller Of the currency
defended to-d day before the Kentuck,
Bankers association his efforts to fore,
national banks to reduce their interes
charges to borrowers during the days o.
stress in the financial and business
world which followed the outbreak o.
the European war.
OF the 1915 national banks in ths
country. Mr.. Williams declared, l02(
have sent in detailed reports showing
that they have received an average OF
10 per cent or more on loans. He cited
without giving names, instances in which
the rate ran up to 40, go, 1000 per cent
In one case--that OF woman who bor'
rowed $3.50 for six days he said the
bank charged 81, or 2,400 per cent.
.sThese banks said Mr.. Williams,
"are authorized by the government. TO
an extent, at least, they have behind
them the sanction, the prestige and the
protection of the great American nation
i and lending S350Sfor six days to a
washerwoman or a laborer's or u farm
er's wife, at 2,400 per cent.
"As somebody once said of druggists
profits on powdered chalk, it gets out
Of the range Of percentage into larceny
from the person. Three hundred per
cent will make anarchists silently, faster
than all the |. w. w. apostles who can
bawl When national banks chartered
by the government disappoint and de-
prive toll of its just reward, and stimu.
late resentment, we have prepared and
! fertilized the soil for a fearful crop Of
disaster. We cannot persuade ourselves
or make others believe that IL is right
or safe for banks to charge 100 per cent
year, while the producing people about
them are kept poor. II know OF such
banks. | do not intend to stand for
them ii / can help il. The country viii
not stand for them"
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 a high
and honorable plane and are charging
fair and reasonable rates on loans" Mr..
Williams said. He predicted that a well
thought out, carefully constructed, con-
servatiye 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 asked the cooperation Of all banks
further to improve conditions.
The figures he quoted, Mr.. Williams
said, were taken from the reports of ma
tional hanks, mot pawn brokers or rec.
ognized money sharks"
"These banks know" he said, "and you
and | know. that such rates are dis
reputable and without excuse, whatever
the security for the loans may be. The
bank that lends al such rates il destroy /
ing its constituency and is at the same
time committing slow but sure suicide. /
Some reports from the South and West,
the Northwest and the Southwest espe-
cially in the wheat and cotton sections
of the Southwest. are blood curdling
They are like stories from darkest Rus
sia. of the expressions inflicted upon the
The reports received at the
Office show indisputa bly,
that in some states and sections. 6or.
rowers and especially small borrowers,
have been and are being subjected 20 ex.
tortions and exactions which the average
man would consider impossible in this
age.
Mr.. Williams devoted much Of his
time to answering criticisms Of .his &C.
tion in regard to lower interest rates by
senator Weeks Of Massachusetts, in a
recent speech before Michigan bankers.
He declared senator Weeks had said that
the banker himself was the man 10 de-
lermine the interest rates. and in reply
read list Of banks which showed an {
average rate Of more than 10 per cent. !
Il included two hanks in Illinois, six in
Minnesota. two IN Missouri. q in {
Georgia, six in Florida. p in Alabama, !
.wo In Louisiana. 3l5 IN Texas. ~ in !
Arkansas three in Tennessee. 30 In 1
North Dakota. p in South Dakota n '
N Nebraska. I've IN Kansas. - in Mon !
ans. IA IN Wyoming. 81 IN Colorado. % 4
n New Mexico. 900 in oklahoma. u in
10 in Oregon, II in Cali. :
ornia, two in Utah, one IN Nevada and 4
% in Idaho. In
Tn one southwestern state. said Mr..
lal banks reported they 1
harged = maximum rate ~ interest of /,
rom rs 70 p per cent. g. hanks . max
mum bstween - and - pr cent. - 4
anks e maximum bctveen - per cent /,
ud 100 pei cent. ~ between leo and 2p0 :,
~ cent. and eight hstween 3p0 and Z.gno !,
er cent.
Most of these disgracefui rates. SID =
he esmptroIler. were for comparatively .
mau lnnns The legal rate IN the
tate. b. pointed out. v'as 8 per eeut
nj the nsaxisnun sufburized - special
1ntrtct. 20 per cent n
Mr. W1iiiams reviewed the fnsrria
fuatian through she frsf fssf Of The
uropean var He ssii tiut his sountrr
~ uaf nnIr avoided fnancal arash huf a
ID ufred or.t ths Seating de8a 81 ss1n- /,
nj g1o duo 80 Eurupe 1nn. q. IaI5. nnd !.
l@afi.a iwtwsen S150nQap 80 and si I,
mnaa wm 81 American securities fhat <,
s-t aisiH sirnad ard uou ts II condition 4.
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