The Oskaloosa herald., 1916-01-13
DRASTIC LAWS
TO CURB BANKS
COMPTROLLER WILLIAMS HITS
AT UsURIous RATES.
MAKES REPORT TO CONGRESS
Urges Offenders Be Punished-says
New York Institutions Charged IL
Per Cent at the Outbreak
Of the War.

Per Gent at the Outbreak
of the War.
Washington, Jan. 1.-THE china,
to the campaign against the charging
OF alleged usurious rates of interes
by American national banks which ha
been prosecuted by John Shelton Will
liams, comptroller of the currency
came when Comptroller Williams sub
mitted to the house of representative!
his annual report, in which he gives
mass of detailed information regard
ing the exaction of excessive interest
rates by national banks and urges upor
congress drastic measures to punish
offenders. He says:
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 furn.
ished 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. l therefore
earnestly recommend to the present
congress the passage of such a law"
Cites New York Banks.
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 IL per
cent in some cases. Through a threat
to publish list of names of New York
banks not charging usurious rates,
Comptroller Williams says he succeed
ed 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 he
cites the instances of three Oklahoma
banks, which, he declares, show av-
erage rates of interest charged on all
their loans of rs per cent, SO 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 a letter written by Judge L. c. Nc.
Nabb of Sequoyah' County, Okla, en-
titled THE Crimes Of the Usurer in
Oklahoma: How They Have Ruined
he Small Farm Owner, the Tenant
Ind the Workingman." This letter
describes the pitiable condition
brought about among the work people
" rural communities due, it is alleged
he usurious ratesofor money charged
~ the country bankers. Other evi.
Ience, the comptroller introduces, at
acks bankers In various sections of
he country. Judge McNabb, the comp
roller says, was forced from the
ench on account of his warfare on
he usurers.
Comptroller Williams recommends
D congress, in his report, much leg.
Station designed to prevent banks !
rom being broken from the inside"
The comptroller's report declares
nat the federal reserve system has
perated successfully despite the
loomy predictions of panic following
s initiation made by opponents of
lie measure. He says the old reserve
1stem was precarious and untrust-
orthy but that the new federal re-
'rve system may be depended upon
safeguard the country from panic.
country's Resources Big.
Resources Of the national banks of
10 United States in November 10.
is, the date of the last call, amount.
to $13,236.331,370 compared with
/, 492,452,722 on October 81, 1914, &C
riding to the comptroller's report.
ne excess reserve November 10, &C.
riding to the report, amounted to
1,746,691, the greatest in the history
American banking.
Since the institution of the federal
serve system. says the, comptroller,
posits in national banks Increased :
,0s1, 5S0,164; and loans and discounts
1911, 45O,502. Capital. sur I,
is and undivided profits increased =
Z 100000. ,
Adding to the 1900 national banks, :,
the state banks, trust companies :,
d other kinds of banks In the =
lifted States the comptroller SAYS =
> total banking resources of the =
lntry amount to the enormous total :
$27,S04,129,677. This figure com. =
res with s64s.6oO,OO0 the total bank. :,
, resources OF the United States II,
1853 when the national banking sys. :,
n was inaugurated. -
he S2.5e day cost for the two -
ms only faknc into on,,nido.oAiI...l ~