Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1916-01-10
|WEALTH IN BANK
PROTECTS U. S. in
AFTER WAR LULL
Annual Currency Report
\ Shows 2,0O0,O00,000 In
creased Deposits
MILLIONS Nh RESERVE EXCEs
Run stnr correspondent

"a ~ surNGToN, Jan 1O.-The outstand-
81 y. feature of the annual report of Comp
81 .z.ior Of the Currency Join Skclton
II wni,oms made to Congress today, is the
.,.,trins Increase in the deposits Of the
a ..uonal banks Of the United States in
q ~ year ended November TO- 1915.
,r,,, ,ncrease OF S2,o3l, 100000 reflects
a. ,sonderf,n prosperity or the American
sn,b,ic and gives assuranc, that this
n P..,ry vilI be able TO take care Of its
# .imass and material development in
.'us npriod of stagnation and probable
& Wv w. ,bst ma, follow the lesscuing Of
~ ~ dsmand for American goods by the
turopean nations at war.
Rank RESOURCES.
r.sources of the national banks OF the
81 .fnited states In November 49, 1915. tho
5ste OF the last call. amounted 10 SlS.28i,-
y, IN compared with Sll, ,ia2, i52,722 on Oy-
81 sstSs al 1914. according to the Gomptrol-
us renort The excess reserve Nuvcm-
~. 10 according to the Comptrollor's rc-
nor, amounted to s)l.7i6,6al the greatest
y ,he history Of American banking.
III isirre the institution Of the. Federal Re-
~ .srvs system, says the Comptroller. de-
sosts In national banks increased S2.0Sl.-
81 ssoist, and loans and discounts increased
81 ear Ia bO2. Capital surplus and undivided
rroa,s increased sl7,0OO,0Oo
II Adding TO the 1000 national banks. all the
IA e,ste hanks, trust companies and other
vi stnds of banks in the United States. the
& romntroller snys the total banking re-
W sonrces of the country amount TO the
N snormous total Of s27, ,SO4129,677. This fg-
srs compares with $6is,G0O0O0. the total
~ banking resources Of the United states
81 in 1853 when the national banking system
ii was inaugurated'
d WOULD JAIL USURERS.
4 The most important suggestion adj
II ,anced in the report Is for an amendment
az the national bank act which will en-
sble the Department of Justice to bring
81 sniff against usurcrs upon information
fnrnlshed by the Comptrollcr's office.
Under the present law suits for usury
have to be brought by the borrower, with
the results that national banks in tho
South and West are violating the law at
II will and crushing the small borrower.
The law has been violated to the
# greatest excess i'm the cascAof IL banks Of
n Inc West and South. The rates run I'm
81 rome cases up to more than 1000 per cent.
81 The Comptroller suggests also law to
s* authorize the Comptroller to bring pro-
II ceedings against directors for losses to
al their banks caused by their own violations
81 Of law He refers to instances within tho
Ell last year In which directors personally
N we're required to restore to banks nearly
"A SOe 900 of losses resulting from their un-
a hwful investment OF bank FUNDS IN
n stocks
81 The Comptroller's report states that
4 on the outbreak of the European war
n New York banks Increased their normal
Interest rates to as high az II per cent
81 in some cases. Through threat to pub
lish' list OF names of New York banks
II not charging usurious rates, Comptroller
Williams says nc succceC,d' In forcing
& the banks to reduce their charges to
per cent.
Taking up the campaign among the
country banks. the Comptroller gives
4 long tables of rates charged in which
& 'he shows 1hat rates MS high as 200 per
8 cent. were .exactcd by some banks Many
s Of these high rates tho Comptroller con-
4 cedes were charged oI( small loans for
q short periods, but he cites IT. instances
OF three Oklahoma banks, which, lie
declares, show average rates Of interest
& CHARGED on all their loans of 81 per cent,
B per cent and 10 per cent, respectively
8 In his tables the Comptroller refrains
from giving the names Of the banks.
LAWS RECOMMENDED
Comptroller Williams recommends to
= Congress, in his report much legislation
designed TO prevent banks from being
broken from the inside" Among these
;rscopmendations are the following:
q Prohibit officers from borrowing
& from their own banks, ana prohibit
authority of the directorate.
Require officers and employees to
give surety bonds.
Limit the amount of a banks money
which may he 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 erasures or acids entries
on the books of national banks
Limit TO per cent. the interest 10
be paid on deposits. except when the
discount rate fixed by the Federal Re-
serve Bank cites higher rate. where
upon banks in such Federal Reserve
BANKS district may equal but not eX-
eeed that rate; provided, however
state laws fix higher rates. in which
cases the national banks in such State
may equal the state rate
Authorize national banks to estab-
Hn branches in the United States,
and permit branch banks In Alaska
land lnsular possessions
t- AWhorlze banks to charge a mini
mum or % cents for small loans.
aWhorlze the Comptroller TO bring
seuons against directors for bank
ing laws.
Nequire bank directors responsible
! osses through unlawful invest
banks !" 'heF
rIofide for service by directors on
N{SsunYe committees of banks in turn
mat all may have the experience.
vnn,.ter npoHer the Comptroller to remove
knlty directors.
banks. OF na'ional
py directors.
.s.,.ll limit deposits 10 eight or ten times
s@Pltal and surplus
bsnllp b'aIlipower the Comptroller to fine
As p Tor violations of bank laws.
eessive loans.
trc, ttsosht os u wildcat banking in the Dis
,he semptroller's report declares that !
sucoa'at'I,al eaeIal Reserve System has operated 4
q ns,shily despite the gloomy predictions /
opnnnan following It's initiation made by /
fessr,,a = OF the measure. He says the old /
tnlstrv.sy system was precarious and un- /
Ressrye ny, but that the new Federal /
"a sss.e system may be depended upon /
sHaFd the country from panic.
ARK TROLLEY CHANGES
,t-!ahln Sedenbach was todav elected