Elko independent. [volume] (Elko, Nev.) 1915-current, 1916-01-13
COMP1ROLLER'S REPORT.
REGARDING BANKS.
BY Pae. and ln.I News Service.


WASHINGTON. Jan. 13.-The eli.
max to the campaign against the
charging of alleged usurious rates OF
interest by American national banks
has been prosecuted by John Shelton
Williams, Comptroller OF the Curren-
cy, came today when Comptroller VIII.
liams today submitted to the House
of Representatives his aRnr,al report,
in which no gives mass of detailed
information regarding the exaction of
excessive interest rates by national
banks and urges upon Congress dras-
tic measures 10 punish offenders.
He says:
"Usury unchecked means depopula-
ton, hopelessness, thriftlessness and
resulting loss Of producing capacity"
IF there should be an amendment"
the Comptroller adds, ito the national
bank act authorizing and directing the
Department of Justice % bring against
usurers upon informi .iJn furnished,
either through the Comptroller OF the
Currency or through other sources,
the practice of usury in all the ma
tional banks throughout the country
can be stopped. therefore earnestly
recommend TO the present Congress
| the passage of such a law
The Comptroller's report states that
on the outbreak of the European war
| New York banks increased their nor
NAL interest rates to as high as 12
per cent in some cases. Through n
threat to publish list of names OF
New York banks not charging usur-
ious rates, Comptroller Williams says
he succeeded in forcing the banks 20
reduce their charges to per cent.
Taking up me campaign among the
country banks. the Comptroller pub
fishes long tables of rates charged in
which he shows that rates as high as
200 per cent were exacted by some
banks. Many of these high rates, the
Comptroller comedies, were charged
OH small loans for short periods, but
he cites the instances of three Okla.
homa banks. which, he declares, show
average rates of interest charged on
all their loans of 25 per cent, So per
cent and forty per cent respectively.
In his tables the Comptroller refrains
from giving the names of'the bsnks.
The Comptroller appends to his re.
port letter written by Judge l.. C.
McNabb OF Sequoyah County, Okla,
entitled The Crimes of the Usurer In
Oklahoma: How they have, Ruined
| the Small Owner, the Tenant and the
| Wortingman." This letter describes
the pitiable condition brought about
among the work people of rural COM
munities due, it is alleged, the usuT
ious rates for money charged by the
country bankers. Other evidence, the
Comptroller introduces, attacks bank.
ers in various sections of the country.
Judge McNabb, the Comptroller says,
was forced from the bench on account
OF his warfare on the usurers.
Comptroller Williams recommends
to Congress, in his report, much legis-
lation designs to prevent banks from
being broken from the inside"
Among these recommendations are
the foIlowing:-
Prohibit officers from borrowing
from their own banks and prohibit
directors from borrowing except on
authority of the directorate.
Require officers and employees to
give surety bonds.
Limit the amount of banks mon.
ey which may be lent to one firm, cor
poration or Individual.
Prevent or limit payment of over.
drafts.
Require certificates OF deposit to be
signed by two officers.
Forbid officers and employees from
altering by erasurs OF acids on the
books OF national banks.
Limit to per cent the interest to
be paid on deposits except when the
discount rate fxed by the Federal
Reserve Bank fixes a higher rate
whereupon banks in such Federal
Reserve Banks district may equal
but not exceed that rate; provide, how
ever. State laws FIX higher rates, In
such cases the national banks in such
State may equal the State rate.
Authorize national banks, to estab
lish branches I'm the United States, and
permit banks In Alaska and insulai
DOSbebBlOnB. |-
Authorize banks to charge mini
mum OF 25 cents for small loans.
Authorize the Comptroller TO br1nG
actions against directors for bankt
losses due to violations OF the bank
ing laws.
Require bank directors responsible
for losses through unlawful invest
ments to make restitution to theil
banks.
Provide for service by directors OF
executive committees Of banks In turI
so that all may have the experience.
Empower the Comptroller to remove
guilty directors.
Authorize consolidation of nationa
banks.
Authorize the Standardization OF ma
, tional bank bylaws.
| Prevent delays In the taking o
oaths by directors.
Limit deposits TO eight or ten timaI
capital and surplus.
: Empower the Comptroller to .fn'
! banks for violations of bank laws.
Provide punishment for making eS
cessive laons.
Prevent Wild cat banking In the Dis
, trict of Columbia.
The Comptrollers report decIare
that the Federal Reserve System hsl
operated successfully despite tn
gloomy predictions OF panic following
It's initiation made by opponents o
, tt.x .s,aa nt..,s TTo aa,,n t1.o ala xonrrt.