The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1916-01-10

GERS and employees to give surety
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; to
prevent era sures on the books of
bank; TO limit interest paid on de-
posts; TO authorize the establishment
of branches in the United States; to
permit branches in Alaska and insular
possessions; to authorize minimum in
terest charg es - which ordinarily
might be usurious-on small loans
and to authorize the comptroller to
bring proceedings against directors
for losses sustai ned by a bank through
violation of the bank act"
Remove Reckless Directors.
The report reu.ews the comptroller's
recommendation of last year for 9th
er legislation, including the giving OF
authority to the comptroller to re-
move directors guilty of persistent
violations of the bank act
Banks" says Mr.. Williams, near
ly always 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 ty-'
ing up or dissipation of the banks
funds through loans to their own Of
ficers and directors, or else by direct
defalcations and enlbezzlements by
.
remedied-and they can be remedied
if certain simple and much needed
amendments can be secured to the
national bank act-fail lures among ma
tionaI banks can be reduced to neg
ligible number, or be absolutely elimi
mated"
Mr. williams shows there were IA
failures during the 2 months ended
October 81. In the last so years, he
says, there were EOS failures attribut
n ioir
or careless banking was responsible
for 1876 others.
Fight OH Usury.
The comptroller devotes much space
to presenting his side of his tight with
national banks to prevent the charg-
ing of usurious interest rates. He
gives tables of loans b. banks in diff
ferent sections to back up his charge
and says that complaints have come
of this practice particularly directed
against small banks in the south and
southwest, west and northwest.
1T is time" says the report, for all
banks of this country to realize that
the federal reserve act was framed to
benefit not only the banks, but also
/ the customers of the banks; that one
of the great objects of the law was to
/ decentralize the money of the country:
/ to effect a more equitable distribution
/ of capital and - away with the old
system by which the resources of our
: banks have been so greatly COncen-
/ trated in a few cities or sections. there
1 to be loaned out largely on specula-
tive ventures. while in other regions
/ money needed so urgently for the Lee
Ultimate purposes of industry and of
development has been scarce and
oftentimes obtainable only, if at all.
at rates injurious if not prohibitory."
Would Withdraw Reserves.
/ Mr.. Williams says that usury I'M
checked means "depopulation, hope
: iessness, thriftlessneSS and resulting
/ loss of producing capacity" He
closes with the statement that intimate
connection with the affairs of his Of
flee has shown that the large major
ity of American bankers are honest
and anxious to obey the laws, patriotic
and intent on building up their com
munities and the country.
/ Speaking of the federal reserve sys-
/ tenn, Mr.. Williams says the withdrawal
/ CT reserve funds from banks in the
4 large cities and their transfer to re-
serve banks has not caused the pre-
/ dicted ''convulsion from which the
whole country would suffer-" "The
business and commerce of the United
States" he points out in this connec-
/ ton, have not contracted. They
have expanded to dimensions never
| before reached"
| The report adds that If the reserve
act is amended so that all reserves I'LL
timately to be transferred to reserve
banks be Withdrawn now instead of
at the end of three years as the law
now provides, there will be no dis
| turbance or inconvenience to the ma
tional banks, which hold the funds to
| be transferred.