Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1920-10-23
CITES INSTANCES Of
EXORB|TANT RATES
BANKERS SWORE TO-
Criticism by American AS
sociation Brings Forth
Singing Reply.
! BRANDS RESOLUTION AS
VAGUE AND ANONYMOUS
Proper Course. He Says, Is
Change of Policy and Re
| formation of Abuses.
GUINAN EFENDS OFFICIAL
BRANDS RESOLUTION AS
VAGUE AND ANONYMOUS
GuINAN DEFENDS OFFICIAL
Tells Financicrs He Is Best Comp
trollcr Of Currency Country
Has Ever Had.

WASHINGTON. Oct. c2.-Rciterat-
ing his charges that excessive inter
est rates were being charged on loans
by a coter!e of bankers in New York
and in answer to q resolution passed
by the American Bankers Association
today, which is generally understood
to he reply to his action, John
SHELTON Williams. Comptroller OF the
Currency. made public tonight the
following statement:
Criticisms on the statement given
out by this office for the newspapers
OF Monday last seem to me to b.
rather vague and feeble as well as
anonymous. hoped they would he
strong, illuminating and constructive.
am constrained to believe that they
do not express the thought of the
bankers OF. the country or OF New
York. who certainly are men OF abn.
ity, with intelligence and courage to,
speak clearly and frankly when. they
wish TO speak.
One OF the functions OF this Office
is to do all possible to maintain and
increase the good will and confidence
OF the public in the banks Of the
country. To that end continual labor,
frequently troublesome to all con-
ccrned. has been applied to make
sure that the management and con-
duct OF all bankers should be such
as do deserve good will and. conh-
iencc
Opposes BnnkinE Evils.
Following along that same line.
L think it right to reitcrate some ex
nressions included in the statement
referred to, but unfortunately omitted
by many newspapers which published
portions of II. These are that there
is no purpose In this office to stir or
cater to any prejudice against that
great and useful part of our financial
system particularly known as Wall
street; that there was and is no pur-
pose to hold up the New York City
bankers or any other bankers for
shccial condemnation. 1t Is my duty
10 discover and oppose what / be-
l'eve to be evils and dangers threat
enins or impeding the business OF
the country. There has been no al
tack on individuals or individual in
terests. The criticism from this office
has been against system and
method. The first step toward cor
rection OF any wrong must be dis.
covery and exposure.
statements OF the existence of ey
tortionatc interest rates In New YORK
aHecting the operations OF the whole
country. made by me some weeks ago.
were met by sneerins denials through
newspapers. Thcreupon It became
necessary TO present confrmatory
specifications and evidence. This has
been done. Anonymous and indefinite
dcnials are not contradictions. state
ments OF facts and figures sworn to
ny the banks themselves cannot be
met by excited rhetoric or general
denunciation. or unsustained accusa-
tion OF improper motives.
Charges Up to 70 Per Cent.
In my previous statement r showed
mat the aggregate of these demand
or call loans secured by bonds and
stocks handled by the New York
banking institutions fer their own
account and for account OF their cor
respondents upon which interest rates
varying from per cent to 80 per
cent have been charged. has probably
averaged through the past year more
than $1,000 100000.
~ 'iS'' bS tipHN itlOuS CTltfCS.
that tho exorbitant interest rates
we're rare and applied to insignificant
sums Will net weigh against official
reports made to this office under oath
We find for example, ono national
bank declaring that loans made by il
in the period covered by my state
rnent at rates in excess OF 10 per cent
per annum. aggregated S44s.O0e. .0o0.
including $1S6.0o0.0OO u.426 Ioans) at
rates of 10 per cent and over. On
certain day within this period an
other tank reported that. on leans
for itself and correspondents. it was
charging 10 Per cent on s55,S95, 900,
and is, 10 and 20 per cent on $s-
100000 additional. The same bank
admitted eXacting on another day IS
per cent on $57,1s3.0oo. 20 per cent
on si.to0.0oo. and 90 per cent on $t4.-
05S,ooo. On three days, carly in Janu-5
AIRY. the amount on which this bank
vas charging is per cent exceeded
*6a6oO,ooo
High Interest Rates.
Another New York national bank
reported that II was charging on y
certain day on loans mafo for ~