The Birmingham age-herald., 1916-01-26
BANKERS PLEASED ID FIND NO SHYLOCK. |. METHODS IN VOGUE. Williams Call for Interest Rates Put Much Extra
 Work Upon Them
 CALCULATIONS ON
 END OF THE WAR Leaders Continue Confident That Nations Abroad Will Be Heavy
 Purchasers Here for
 Many Years
By HOLLAND

By HOLLAND
 New York, January 25.-(SpecialD When the comptroller of the currency at Washington. John Skelton Williams ln- structed the banks of the United States over which he as comptroller has over sight to make statements whech would show the rates charged those who bor- row money he put upon the chief book keepers a good deal of extra work. The officer of that in one of the largest Of the New York banks said that the amount of detail in the investigation entailed by this request was very great, notw1th-
 standing the fact that he knew his bank never charges in excess of per cent.
 It was his duty, however, to learn what other charges had been. Many of them were not greater than AZ per cent. From New York and other large financial cen- ters came almost unvarying reports which showed that the banks were charging reasonable rates of interest, many times not in excess of per cent and often less than that Of course, the comptroller at Washington cannot know officially what the charges made by state-chartered banks have been. But presumably he has heard that some of them have made larger demands for loans than have the national banks. In some prts of the coun- try the reports clearly show that money in large amounts available to borrowers has been for sometime held by the banks The result has been that charges were reasonable, the supply of lendable funds being in excess of the demand.
 the MjDnpa nOliS district for instance. a great change has taken place since those days-not many years ago-when Boston banks were buying commercial paper in large amounts which originated in that district. Then, frequently, charges as high as 12 per cent or that rate were made, and it was not often that the charge was less than 10 per cent. Now, the unsurpassed credit, as well as the abundant supplies of money capital which characterizes the northwest. has made 1t possible for Comptroller Williams to learn that customers of the national banks in that region do not have to pay much more, and in most cases no more, than IS charged for the use of money in the east.
 The abnormal and excessive rates which Comptroller Williams has disclosed in his latest report are in part explained by bankers in this city by the statement that in the two sections where chiefly these excessive rates prevail there has been a heavy demand for loans and the sections are somewhat sparsely settled. In New York city, the prevailing maxi mum rate, with occasional exceptions, charged for the use of money is per cent, often a little less, rarely any more. At the annual banquet of the Associated Bankers of New York city, which was held the other evening, there was a good deal of informal and neighborly conver- sation in which pleasure was expressed that the comptroller of the currency was able to report that so far as New York and other large financial centers are concerned there has been no shylock dis position on the part of tht bankers.
 AFTER THE WAR-WHAT?
 Many have been the discussions cen- tered upon the question, What is to take place in the United States so far as trade is concerned after the European war is ended? Some excellent authorities have ventured to suggest that the nations now at war will as soon as possible after peace comes concentrate to considerable extent their energies upon well organ ized and systematic attempt to get back from the United States some part of the wealth, considerable part of the gold and a large part of the trade which were lost to thes enations after the war began.
 There is, however another side to this proposition which some of the leaders in
 industries in personal conversation sug- gest, that it will be a good while after the war is ended before any considerable inroads upon American trade are made. They base their statement upon the dis position shown in some of the nations which are at war, especially Russia, France and Italy, to make very large purchases of American commodities, prin- cipally of the kind used when peace pre- vails. These industrial managers have had personal knowledge of the investiga- tions representatives have been making l in the United States and that on the whole these have been satisfactory They 1 are likely to result in very heavy pur- chases of American commodities by Rus l sia, not necessarily the Russian govern | ment, but by organizations of appara tus, | tools, machinery, railway equipment and other commodities which will be used in
 upbuilding Russia's industries
 | So, also, France has, through repre-
 sentatives. been Investigating conditions
 in the United States. and there have been
 within few days intimations that CO., operation between French and Italian representatives is likely to lead to a joint syndicate which may be persuaded to ex-
 pend $2,000,000 or $3,O0O 900 in the United States, principally for purposes which are not associated with the carrying on
 of war. Some of these commodities will
 be available for the purpose of maintain. | ing equipment which will be of impor- tance in case another war comes
 So it is argued that there must be
 something in these various approaches tentative to the United States, so that ii our own bankers and our leaders in in- dustries facilitate this purpose, or CO., operate with it, we are likely to have a
 foreign trade aggregating many hundred million dollars and extending over severa years after the war Is ended.