Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1915-04-21

that made the National City bank its
eastern reserve agent The business
consisted ~ the transfer OF bonds to
secure circulation. issue OF national
bank notes and other things Of that
nature 1t was to be transacted by
the Washington agent of the Ma
tional City bank.
Through this free service the Riggs
National bank became the reporting
agent and representative of large
number Of national banks through
out the country Some persons place
the number as high as 5000. In one
Of its statements ISSUED this week the
Riggs National bank does not deny
that it Is performing this service.
But" II SAYS "other banks in this
city are doing the same thing.
Treasury department officials say
that the Rigs National bank has
more business of this kind than any
other bank I'm Washington as the
others only gave free service as a mat
ter of protection.
BUNNY Loans Charged.
When Mr. Williams became comp
troller Of the currency he kept close
tab on the Riggs National bank
through his bank examiners. His at
tentiOns became SO marked that the
Riggs National bank officials say they
amounted to persecution. In several
of his letters and his statements this
week Comptroller Williams alleges
that the officers of the bank made
dummy loans to themselves
through employees of the bank. and
that some OF the collateral put up as
security for the loans was highly spec
ulative and Of little value at the pres
ent time
1t wa salso alleged lay the comp
troler that one or two loans had
been made on stock that had deterio-
rated in value since the outbreak of
the European war to such an extent
as TO be far below the amount of the
loan.
Comptroller Fines Bank
The Riggs bank officials claim that
the comptroller gave no orders con-
corning any Of the notes held by the
bank Had any orders been issued
they would have been obeyed, the Of
hcials say.
Finally, however. Mr. Williams is
sued an order. filming the bank 500 a
day for alleged noncompliance with
his directions. In order 70 secure the
payment Of the fine, he directed that
$4,000 due the bank on government
bonds held by the department to
secure circulation be withheld from
the bank. The suit followed.
Secretary William g. McAdoo has
backed up Comptroller Williams in
everything that has been done. A
treasury official other than Secre-
tary McAdoo and Mr. Williams, said
today:
The comptroller was obliged to act
as he did in the Riggs bank matter
In the discharge of his duty. There
are some banks that have been maxi
ing loans TO their officers, contrary az
least to the orders Vt the comptrol-
Ter and in violation Of all the prin-
ciples Of sound banking In order to
preserve the integrity Of the entire
system the department was obliged
to act as 1t did"
"Deccntralizing" Money.
Reports have been circulated In va
rious quarters that Secretary McAdoo
has started this attack on the Riggs
National bank. n Standard oil hank,
in the interest of competing group
OF bankers. Among those who are in
a position to know these reports are
not credited II is aid however. that
hi' NNAh'b mas Rtth tiiNttAut rug 70
"decentralize" the accumulation of
money in the financial centers Of the
country, and that the federal reserve
net was framed in order that the de-
Capitalization might be accomplish
ed.
Those who know about the various
financial interests of the country say
that tho Rockefeller and Morgan in
terests are now working in harmony,
and that the financial interests out
side these lack power While Mr.
McAdoo may not be allied with any of
the outside interests, the probability
Is that he is working to break the
power of the Morgan Rockefeller |