The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1920-10-18
N. Y. Money Cars
GriI|ed By the u. s.
Treasury Comptroller

WnshIngton. Oct l7--"InJunII1abl bile
interest eSnctod on demand loans. ny
New York City hanks has been an active
contributing cause OF tho huge shrink
ago In all security vRluou during Tho
pnBt year. Controller Of tho Currency
Williams declared to night In formal
nj utntamnnt. IIr charged that call money
ratcH In Now York were tho Highest In
thr world and that removal rates fixed
daily by n small "co,eric" OF Htnck OK.
charges on brokorH' loans In nearly NIL
Now York banka
Too Muoh Power.
Tho raising or lowering OF tho. 'ro-
ncwar ratio on tho exchange. SAID Mr
Williams. "ls frequently accompanied by
upward or downward movements In
stocks and socurlileH. and those rcspon-
sible for the fixing OF the rate therefore
have the opportunity whether exercised
or not. of profiting largely by operations
on tho stock market. which Is 80 often
and directly effected by the call money
situation. do not. OF course. undertake
TO say that this informal money com
mittee' does take improper advantage
OF their fore-knowledge: but there are
critics who severely censure the exist
ing arrangements. Certainly all prudent
and thinking business men Will agree
that there is danger In the concentra-
ton OF such opportunity and power in
the hands OF few peraonS. Tempta-
tions To use this power Tor lndlHlhuai
profit must arise. and human nature Is
not changed by high position In the
financial world.
Secret Tribunal.
Power To Ix money rates Tor all. or
nearly all OF the banks In New YORK my
aud 10 change Them daily. 10 ETip on
tho heart 0I our GonImnT'o IL permits
such lnteTfsranOas hs IhllIbI" huHah u
Judgment, Whim 0r l"tuf"s' may hlIoH'
with tho natural ana "rdoily hn"V"inehlH
az money tho iIta blood al iusInebn The
matter ~ aTbltTaTiiY fsI"r '"''""y '"'"a
al the Hiuhuy Usnin', i'""uIhlY '"Ve'"'"H
II,o natural and healthy fi"v anh oii"'l .
Ia, di,aniiy -, lniI,orIIy. hilll"us 81
driiarr ~ sn,u'lIT Sniu"H e"h ",l'"'
pI"po'IH 10 lofI I" a ANAL eel VARYING
numher "f rriVaia "iil'onH ~''h""' "II'
rloI 'osr"nsIhilliy. d""lhIhG !" ""'"""'
and IL se"ret
'"rhe evils and dangers nf au"h moih
nds could 10 ro,Itei lndeflnltnly Th"T
roach To the remntnHt o"rher" ~ 'hs
union and llu possos7l"na' ma '"u'h
barmruIly every class of people. IN"
direct tendency ia !" reverse nnn o' Wv"
Fundamental purposes OF tho f"derRl re-
serve act. which 10 10 promote orderly
distrIbutIon Of money through tho coun-
try 10 meet tho moods OF commerce nm
Agriculture. Excessive interest rates OF
fercd In New York artificially draw
money away from outside Communitie.
through their banks, and often leave
legitimate enterprises starved or pinch
cd, while feeding speculative movements
which may be adding nothing to real In
dustrial or commercial wealth.
"I rciterate the statement previously
made that the excessive rates on call
money. arbitrarily fixed and tolerated
in New York. In my opinion. have been
a potent Influence in depressing serious
" the prices Of all Investment bonds
and standard shares. the shrtnkage In
which In the past IL months has amount
honds 10 sevarAl billion dollars"