The Manitowoc pilot. [volume] (Manitowoc, Wis.) 1859-1932, 1916-01-13
ASK DRASTIC LAWS
TOCURBU. s: 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.

Washington, Jan. 1.-THE climax
to the campaign against the charging
OF alleged usurious rates Of interest
by American national banks which has
been prosecuted by John Shelton VII.
liams, comptroller of the currency,
| came when Comptroller Williams sub
mitted to the house of representatives
| his annual report, In which he gives
a mass of detailed information regard
! ing the eXaction Of excessive interest
rates by national banks and urges upon
/ 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. | therefore
earnestly recommend to the present
congress the passage of such law"
Cites New York Banks.
The comptrollers report states that
on the outbreak of the European war
New York banks increased their nor
NAL interest rates to as high as 2 per
cent In some cases Through a threat
to publish a 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 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
cites the instances Of three Oklahoma
banks. which, he declares, show av.
erage rates OF interest charged on all
their loans of 20 per cent, 80 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. Nc.
Nabb of Sequoyah County, Okla. en-.
titled The Crimes Of the Usurer in
Oklahoma: How They Have Ruined
the Small Farm Owner. the Tenant
and the Workingman." This letter
describes the pitiable condition
brought about among the work people
Of rural communities due. 1t Is alleged
the usurious rates for money charged
by the country bankers. Other evi
dence. the comptroller introduces, at
tacks bankere in various sections OF
the country. Judge McNabb. the comp.
troller says. was forced from the
bench on account of his warfare on
| the usurers.
Comptroller Williams recommends
to congress, In his report, much leg
islation designed to prevent banks
| from being broken from the inside.
The comptroller's report declares
| that the federal reserve system has
operated successfully despite the
gloomy predictions of panic following
its initiation made by opponents OF
the measure. He says the old reserve
system was precarious and untrust.
worthy but that the new fedora! re.
serve system may be depended upon
to safeguard the country from panic
country's Resources Big.
Resources of the national banks OF
| the United States In November 10
| 1915. the date of the last call, amount
cd to sl3,236, 33l,370 compared with
| $l1 ,492.452,722 on October 81. 1914, &C.
cording to the comptroler's report
| The excess reserve November 10, &C.
cording to the report, amounted To
| $9l 746.6 sol. the greatest In the history
of American banking.
Since the institution OF the federal
reserve system, says the comptroller
| deposits In national banks increased
| So, 081 $50. 1874; and loans and discounts
increased $917.450,502 Capital. sur
plus and undivided profits increased
| $4,000, 600.
Adding to the 1900 national banks
all the state banks. trust companies
and other kinds Of banks In the
United States the comptroller says
the total banking resources OF the
country amount to the enormous tota
OF $27.804, 1851 This figure com
pares with seas, 100000 the total bank
ing resources OF the United States
in 1868 when the national banking sys
| TEN was inaugurated