Hopkinsville Kentuckian. [volume] (Hopkinsville, Ky.) 1889-1918, 1915-11-30
Ccmpp!.r:ssiier's New Order Fixing
Interest Charge Limit at
Six Per Cent.
SMALL BANKS MAY QUIT
And Resume Under More Lib
eral State
Charters.

ness under difficult conditions, are
much stirred up over the recent pro
nunciamento of John SHELTON Wilt
ans, Comptroller Of the Currency,
that no national bank will hereafter
be permitted to charge more than
the legal rate of interest. 1t is said
that about one hundred and fifty
Kentucky national banks have int
mated to Mr.. Williams that an at
tempt to enforce this order will COM
pei the banks to cancel their chart
ers and seek new charters under the
State banking laws
National Bankers have made COM
plant that the last few wears have
placed unusual restrictions and in
conveniences upon the nationalbanks,
many Of which they regard as I'M
necessary and hurd-nsome. One of
the So is the constant change and
elaboration of tn form of the state
ment Of condition hich under the
iaw is required of national banks FIVE
times year, irregular periods bs ing
selected in order to prevent banks
from preparing in advance TO make
creditable statement.
Much Of the information which tn
banks are called upon to supply re-
CURES much time to tabulate and
balance, whereas, formerly the banks
were allowed ten days to make this
statement of condition. it is now re-
quired within five days, an order
which in small banks seriously inter-
feres with the routine of business
and often entails considerable addi-
tional expense to the bank. In addi-
ton to these statements to the comp
troller, the bank is subject to peri
odical examination by national bank
exam ners and the complaint is made
that the cost of this examination,
which is paid for by the banks, has
lin many instances been nearly
double,
The Federal Reserve Bank system
mas also added to the problems of the
smaller national banks. Each ma
tional bank is required to subscribe
to the stock of the Federal Reserve
bank in its district. and to place its
reserves with the Reserve bank. The
subscriptions to stock have meaOt
merely so much idle money, as none
of the Reserve banks have paid any
divide DIS, and their reports show
that a vast bulk of their stored CAPT
tai has not been invested. While
this i said to be due to the general
plentifulness of money. and the pow
er of the Reserve banks stands as a
potent protection against panics as
being able to supply a practically I'M
, limited amount of money IN emery
encies, bankers have found that the
process of borrowing money from a
Reserve bank of which it is a mem
r Der and stakeholder. is tedious, un'
! satisfactory and less conducive to
meeting the needs of the business
community promptly than was the
old system of reoiscounts with re-
serve agents OF New York CORES
pondents,
Another source of dissatisfaction
l arises out of the statements of con
dition. The Reserve banks. being
lenders of money to the natlona
: thanks. are finding it necessary to cal
upon the banks for statements o.
, condition similar 10 the statements
called for by the Comptroller. In'
Federal Reserve board recently made
application TO the Comptroller fol
the records Of the national banks a
a shown by the statements OF con iltlon
= which the Comptroller declined L
!. furnish, making it necessary for tn
e national banks TO now make state
a ments when called upon, both TO thu
n Comptroller md to the Federal Re
r serve banks.
al The country banks complain ais
that constant Innovations are beinI