Evening star. [volume] (Washington, D.C.) 1854-1972, 1916-01-10

increased by 1886 during the year
ending last June, with total deposits
of $4.997, zoe, 013. an increase of $751;
ever, decreased eas a from s44a asSo to .44s.ss,
while the number of banks sed
from 2,100 to 2,159.
The controllers principal recon-
mendation for legislation is for an
amendment to the bank law authoriz.
ing and directing the Department of
Justice to bring suits against usur-
ers upon information furnished either
by the controller or through other
sources.
Other recommendations given under
a heading ITO Prevent Bank Failures
propose: To prohibit officers from
borrowing from their own banks; to
prevent loans to directors except with
the approval of the board; to require
bonds: to limit direct and indirect
loans to one individual. firm or cor
poration: to prevent or limit over
drafts; to require certificates of de-
post to be signed by two directors; 10
prevent erasures on the o Of a
bank: to limit interest paid on de.
posits: to authorize the establishment
of branches in the United States; TO
permit branches in Alaska n 1nsuiar
possessions: to authorize. minimum IN.
terest charges-which ordinarily misnt
be ~usurious-on small loans and to
authorize the controller to bring pro-
ceedings against directors for losses
sustained by a bank through violation
of the bank act.
Other Recommendations.
The report renews the controllers
recommendations Of last year for other
legislation, including the giving OF
authority to the controller to remove
directors guilty of persistent viola
lions of the bank act.
Banks" says Mr.. Williams, nearly
are broken, not by bank rob-
bers, who have come from the outside,
not by failure of customers to whom
they have lent money. but by the tying
or dissipation of the banks funds
loans to their own officers and
directors, or else by direct defalcations
and entertainments by trusted officers.
If these evils are r~emedied-and they
can be remadied if certain simple and
amendments can be Sc
cured to the national bank act-fail-
ures among national banks can be re-
duced to a negligible number or ne
a bsolutely eliminated"
Mr.. Williams shows there were four
teen failures during the twelve months
ended October 81. In the last NIFTY
he says. there were 208 failures
attributable to criminal acts. while in
judiciouS or careless banking was. re-
sponsible for 1876 others.
The controller devotes much space to
presenting his side of his fight with
national banks to prevent the charging
Of u%surious interest rates. He gives ia
of loans by banks in different sec
tions to back up his charge and says
complaints have come of this prac-
tice particularly directed against small
banks in the south and southwest, west
nd northwest.
Seeks to Stop Usury.
"1t is time," says the report, for all
banks Of this country to realize that the
federal reserve act was framed to BEN
eft not only the banks but also the
customers of the banks: that one Of the
great objects of the law was to decen-
effect a more equitable distribution of
capital and do away with the old sys-
tenn by which the resources of our
trated ina few cities or sections, there
to be loaned out largely or speculative
ventures. while in other regions money
needed SO urgently for the legitimate
purposes of industry and of develop
ment has been scarce and oftentimes
obtainable only, If at all. at rates in
furious il not prohibitory."
Mr.. Williams says that usury I'M
checked means "depopulation, hopeless
ness. thriftlessness and resulting loss
of producing capacity" He, closes with
the statement that intimate connection
with the affairs of his office has shown
that the large majority of American
the laws, patriotic and intent on build