Evening star., 1916-01-09
EVANGELICAL AND OTHERWISE
By I. A. FLEMING.

Bankers all over the country. in the
federal reserve system. have been al
most up in arms over the last batch
of questions asked by the controller OF
the currency regarding loans and dis
counts. in furtherance OF his anti
usury campaign. Long-distanee tele-
phone wires have been kept busy by
bankers. seeking information as to
just what's wanted and for the eluctda-
ton Of some questions asked
Bankers complain that every form
sent out by the controller contains dif-
ferent questions; that the work en-
tailed through preparing responses to
the interrogatories. the research and
effort, is a decided handicap to the con-
duct of the daily business Of their in
stitutions
Then the dAlving into details has no
purpose, they say. and that the condi-
ton Of financial institutions is in no
way indicated by the number of loans
made, the number of times such loans
are renewed, a complete disclosure OF
all rates on loans and percentage OF
profit on paper bought.
The controller demands much infor-
nation and plainly stated in the forme
sent to each member bank that 1t was
his intention to verify the returns
made by some banks through the
bank examiners of his bureau, and of
all banks if necessary:
There is every probability OF more
usury charges and literature from the
controllers office in the near future as
a result of the answers under oatn
that must be made to the latest batch
of queries, which were published IN
this column last Monday.
Bankers have long been in the habit
Of buying paper through brokers' ano
others, and the usury laws would not
be effective in a case of this kino.
Paper is q commodity and has its
value as such.
1.-The customers of a bank are using
its funds freely. commercial paper is
not wanted by a bank If funds are
plentiful, then paper is needed com
modify. Like other commodities. paper
is graded. There are corporations
whose paper commands the most gem
erous treatment and the lowest curtent REM
rate of interest; and other paper tnat
ought to be and is. frequently. sold at
Quite a reduction from face value
Then, too, there are many lnslg min
cant loans made for short PERIODS OF
time, where normal interest rates
would not compensate for the trouble
necessary to making entries. collection,
etc. 1t has been the custom OF banks
to make no interest charges under 20
cents. which, as an illustration, would
not be called usurious on a loan, say. OF
SIS for one month. and yet 1t is at the
rate Of IL per cent. IL one desired to
call 1t usury.
Because Of these customs, there is
likely to be flood of usury charges
resulting from the forcing of bankers
to go into minor details Of their busi-
ness, and very many charges will be
substantiated by the aff1davits Of the
financiers themselves.
Local Bank Deposits.
Between November 10 and December
81, dates of the fifth and sixth calls Of
the controller of the currency. Wash
ington savings banks lost heavily.
Perhaps this was natural in view of the
Christmas season and the fact that
several banks were conducting Christ
mas, savings clubs.
The holidays are not a season of econ
omy, but rather of expenditure in the
joy of giving spirit. The Home Saw
ings Bank added $4,000 to it's total
terest payments to depositors. and the
Potomac Savings about 100000, but
these were the only exceptions.
The Federal, Riggs. Lincoln and Co
lumbia National Banks show gains in
their deposits during the period named.
but the other nine national banks lost.
Repayment of government funds, tax
money, etc. were largely responsible.
The trust companies, in the aggregate,
will show large net gains in deposits,
which may be accredited, partially at
least. to interest payments to deposit
tors and increased deposits to the cred
it of national banks.
Only the complete figures will give
the exact net change for the period.
Bank Elections.
Many banks and trust companies have
decided not to wait until October 16 to
comply with the provisions of the Clay
ton act, which forbid interlocking di-
.rectories or the holding of dual posi-
tions by bank officers or directors.
Because of this there will be many
changes in the boards of tho various
institutions holding elections during
the coming week. Some officials will
not rearrange their boards to comply
with the law until October Is of this
year, as the law becomes operative as
to interlocking directories, October 16.
It Is probable that some vacancies
to make way for desirable directors
who may be selected later on.
Many surprises will develop as a re-
suit of the elections, and many direct
ors will sever relations that have exist
ed long, forced by the necessity of
choosing between banks.
Washington as Par Point.
Bankers are interested in the propo-
sition offered by the clearing house as-
sociation of New York to make Wash
ington par point-that is. to make
checks drawn on banks in this city,
against funds on deposits, payable at
face value any place in the United
States.
Two years ago an effort to secure this
concession was put forth by the local
clearing house organization. Now the
proposal has been before the bankers
for several days, and no concerted
action is taken.
1t would be somewhat embarrassing
to have a few banks accept the pro-
posal, and others decline-that is. to
those refusing. as their depositors