Pine Bluff daily graphic., 1916-01-11
Comptroller Williams Shows New York and Oklahoma
 Banks Great Offenders.
WANTS CONGRESS TO
 PASS CURBING LAW
Believes Bank Officers Should Be Pro. llibited from Borrowing from Own
 Banks and Should Make Restitu. ', ton for Losses,

Washington, Jan. 10.-The climax Ito the campaign against the charging of alleged usurious rates of interest by American national banks which has been prosecuted by John Skelton Williams, comptroller of the curren- cy, came today when Comptroller. Williams today submitted to the
 house of representatives his annual
 report. in which he gives mass of detailed information regarding the ex- action of excessive interest rates by
 national banks and urges upon con-
 gress drastic measures to punish of lenders.
 He says:
 "Usury unchecked means depopu- lation, hOpelessness, thriftlessness and resulting loss of producing ca
 pacity."
 "If there should be an amendment" the comptroller adds, ito the national bank act authorizing and directing the department of justice to bring suit against usurers upon information fur. nished either through the comptroller of the currency or through other sources, the practice of usury in all the national banks throughout the country can be stopped. I 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 mai interest rates to as high as 12 per cent in some cases. Through threat to publish list of names of New York banks not charging lsurious rates, Comptroller Williams says he succeeded in forcing the banks to reduce their charges to 6| per cent.
 Taking up the 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 on small loans for short periods but heecites the instances of three Okla homa banks, which, he declares, show average rates of interest charged on all their loans of 25 per cent, 36 per cent and 40 per cent respectively. In his tables the comptroller refrains from giving the names of the banks.
 The comptroller appends to his re- port letter written by Judge l.. c. l McNabb of Sequoyah county, Ckla., entitled "f'he Crimes of the Usurer in 1 Oklahoma; How They Have Ruined the Small Farm Owner, the Tenant | and the Workingman." This letter de- scribes the pitiable condition brought | about among the work people of rural due, it is alleged, to the usurious rates for money charged by l the country bankers. Other evidence, the comptroller introduces, attacks 1 bankers in various sections of the | Judge McNabb, the comp | treller says, was forced from the ! bench on account of his warfare on the usurers.
 Prohibit Loans to Officials.
 Comptroller Williams recommends | to congress, in his report, much legis- lation designed to prevent banks from being broken from the inside" Among these recommendations are the following:
 Prohibit officers from borrowing l 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 money