The evening herald. [volume] (Albuquerque, New Mexico) 1914-1922, 1916-01-10
Comptroller Of the Currency
Uses Emphatic Language to
Describe Financial and
Commercial Growth.
RECOMMENDS ACTION
AGAINST ALL USURERS
Principal Recommendation Of
John Shelton Williams in
Annual Report Directed
Against Note-shavers.

Washington Ian. fu "pcVclop-
m'ut and growth never parril"l"d m
the financial history of any cuuutr.
is tho way John ~kritou Williams.
comptroller ut the currency dcsc:in"s
n his annual report g. congress tho
operation IT the national bank. under
hia charge during the pc iod from
October. 1914. to November 1913, tn 2
nrst year under the fedora reserve
system. The report was today pre-
scented 10 p0ns"css
Nj Williams gives comparati't
slqtcu "nt ui the condition Of the ma
tiunal banks To- back up hl- statemen
lie shows that not resources 1f the
banks increased in the year sl.Il3.-
N.NGts. that deposits increased s. .
0Ai,51O.lbi and that loans and dis
coumt- Increased $Hl7.tjp.bo-. Avail
able cash increased iu jhc same pee
iod fSG2 1u0.VoU ara On November 10,
1913. the reporting uatinrll bunl-
hnd excess reserves ct SSgl GOO 1oo.
Tuplcs show the comparative cundi-
tions oi tanks ia 1885 and i9l5. H.
september. lNt. thcr, were ana gee
porting anuke with net deposits oi
St.Hsg. 500. 900, and loans and di-.
counts ~ k1,utg.iUh.tuI while iu Mo-
Ncmhcr 1915 there were tGl1 re-
porting hauk- with net deposits oi
se.u79.t5I.itl. loans tud discounts ~
N,-a..9-s.H,3.
THE reserves hcld bog thn uJtiorel
banks \uyombcr 10. 1910. says ,tc
report exceeded by {sN.uou.0oo m"
sroat"st reserve. ever held ct any tim.
prior tp the pa~sag" of thc federal
,csvr,, s'i Loans and dis,u'sIt'
Rmuuntcd to more than The total loans
ana discounts Of an ulENs ucmdi' +.
national state. savings aud private
banks and loan and TRUST companies
as Late as the year l9n-.
Mi Williams snNt thd the uanhiuS
power 80 IN. United states th' ctIi
tai. ,urplup. circulation. deposits, ct
uf iii reporting banks. national ano
otherwise, with an estimate of the ig
urcs Tor rcpurttug banks, amount
ed IN june 1913. 20 S2'.33'.lno 200
an increase m q ear of about sl."i,.'
100000 Swings oauk dcpositors iu'
creased hS l16.2jh daring the yeas
ending last June with total deposits o'
sia95,1 ,1o6.0l3, an increase oi S6l
lli.IG3 The avcrag" deposit, how
over. decreased from siii.36 tn Sii'.
~. white the number of banks ~.
creased from 2.lo0 To- ..I5e.
The comptroller principal recon.
ncndatiou Tor legislation is fur ~
amendment to the hank iuw authnriz
ms and difcctius me department d"
Justice tu bring suits ag0in-t Insurer
upou information furnished either hl
IA" comptroller or thr"lsh othe'
sources
other recommendation given IN
der "a heading TO Prevent BANS Fnt
urcs propose. To prohibit oiliccr'
from borrowing from their owl
baukr. tu prevent loans 90 director
except with the approval u' the board
to r,uuir, officers and cnpluyc- u'
give surety bonds tu '.mht direct an'
Indirect loans to one iudl, idual hri
ur corporation, tu prevent "r hmi
o,cidraits. to- require certificates Z"
dcpusit Ia ar SIGNED bN Two directors
to- urr\pnt crasurc~ on thr books &"
4 bank. 10 limit interest paid on de
posits. Ia authorize the cuihllshmcn
Of branches in the United states g
permit branchcs IN Alaska aud insd
lar pusscssions to authorize minimum
mlght ho usurious on small loan
and to- authorize the comptroller y
br,up proceedings AGAINST directors &"
lussrs sustained by u bank ihr"us'
violation oi the bank act
The report rcnews TIA" comptroller
recommendation of last year tor uih
or legislation. including tn" giving %
authority 10 the comptroller tn re
move directors guilty of persistent Vip
la'iuns nf the bank act,
Banks says Mr.. Williams. near
b. always are broken, not by ban
robbers. who have come frnni the out
side. not by failure of customers =
whom theN have lent mon'>, but %
the tying up or dissipation "i ~
banks funds through loans to tho
own officers and directors. 90 els" D
direct dctaivuiions ana omheATl m"ni
hN trusted officers II these "\lls q"
rcmcdied and they can h' t"m"d'"
If certain simple aud much needle
amendments can bo secured I" IA" ma
tonsi bank act failures am"ng nn