Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-06-29
Banks MAY BOOST |
INTEREST TO CITY
Advance From 2N to 3 D..
Cent Expected Result Of
Conference
eAFFNEY ASKS QUESTIONS

The city may receive = u
OF interest on its money on don..., ,a.e
oanks and trust companies as tbo o's,. s. a. "a
OF conference held yesterday ' 'e'u't
The finance committee 20
n'ty Treasurer shoycr and FroSaO,I ~ausV
I, druenberg, of the Bureau ~ yu,cs ny
nicipal Research, represented ~. Mu Mu'
w,.n 'he banks and trust conn, NY.
represented by officials. panls'
Inc present rate of interest ~
money on deposit is 2k per cant =" ,,5 wy
plan !. under y consideration is to inc,.,.'
1t to 3 per cent. '" '"crea'e
Bank representatives mado -
oo,e't,on to the proposed increase ''sa. s,.I
'n.s dia 60 on record against tbs ss'l
guirement Of corporate surety bond. !.
deposit of city, state or national I hs :.
70 secure the city's cash. D'
Sity treasurer Shoyer backed II, q.
ordnance as drawn by former ~. ~
treasurer McCoach by Ietters wy wv
otner cities showing rates of interest =
follows: "'''est @
New York city gets 3 per cent
11nicago gets 9 to 31s per cent
Soston gets 2R to 81 per cent
~. Louis gets 2A per cent
PDha!timore Ph gets 211a per cent.
oxan. ae citles that get the lower ,,,o,
No Fixed Limit EI,ewb.r.
The bankers generally urged that Ne,,
iork and Chicago had no liked limi, N
interest as in Pennsylvania. Tbev a,so|
urged it was bad policy for the citv !,
increase interest, as it tended 10 lssn|
up money rates, keep UP the hisb cos,
OF living in general, keep up the r,ts
she must pay for her own loans. Tb.,V
urged that 1t was bad policy for the cit,l
to require deposit of city bonds opl, i.
security, as this was an attemnt "a
create an artificial market for her own
bonds.
Joseph P. Gnffncy was the most rs,
sistent and aggressive questioner of III,
bankers. VI u'
when the bankers are sending PIN.
adelphia's money to New York IN sa
the highest interest they can get wS,
should not the city as their partner ret
some of that increased INTEREST,""
The only answer attempted IN thas
question was that It would tend 10 tss,
up the high cost of living.
Director Gutenberg, of the Bures
of Municipal Research, said:
why has Pittsburgh. which is in ou
own state, been overlooked? P:ttsburs
gets from 3 to 3% per cent interest =.
deposits and the Pittsburgh school AM
trict gets from 3 to 4 per cent interest
This is by annual bidding. The deposit
are not secured. The principle of secur]
ity should be decided for all time
The rates should be negotiated for often
er than once year. The city's inactiv
deposits are in substance time deposit
and should be treated as SUCH"
Bank Presidents Who Spoke
The bank presidents who address
the committee were: William r. Nich
olson. of the Land. Title and Trust Co.
NJ. G. Baker, of the Penn Natoua
Bank; William p. Gest. of the Fide
ity Trust Co. /; Lewis r. Dick, Of III
Third National; w. J. Montgomery,
the Eighth National.
There were many suggestions as
the provisions of the ordinance whica
the committee was inclined to accept
Instead of only city bonds for securit
Of deposits, it was agreed they should
say city, state and national bonds
Nicholson and Gest said thei1
respective institutions had refused stats
deposits, because they did not believe 10
the principle of making the state
preferred creditor. They believed It wal
unsound banking business.
Councilmen remarked that monet
could get so much interest in hih
money markets that it was refused ,
building and loan associations and frs
here.
President Nicholson said II was pal
triotic to send money where 1t was mos
needed. President Dick, Of the Thf
was the only one to assert thi 4
''3 per cent would be unfair and .ur a
just" Chairman Burch remarked b
'"The present rate stood when the clI 8
was paying 3 per cent for loans. No
the new loan rate is offered at A
cent, and ! do not know whether. n
will get it for that" The commit r
took no action on the bill. .,