The Washington times., 1920-09-13
STARTS DRIVE ON
"GREEDY' BANKERS
Comptroller Williams Charges
n. 7. Group With Excessive
Interest on Loans.

Comptroller ohm skelton Williams
today served notice that he is out for
the seaIps OF group OF New York
bankers for charging excessive rates
Of interest on call loans. Williams is-
sued a statement substsntiating the
recent charges OF Senator owen that
New York bankers had loaned about
$500 900. 900 az interest rates up 20 80
per cent.
Strongly condsmning the critics of
the Senator, the comptroller said the
record now being complied, In respect
TO oppressive rates eEscted by some
New York bankers. would reveal even
more startling disclosures than those
made by Senator Owen In his expose.
CharActerizinE the criticism OF .
leading New. York banker as mis-
that during the past year the
''burdsnsome and oppressive rates Of
interest to which the Senator refers
have been exActed. not in one or two
possible insisnifcant instances. but
In Thousands OF instances at numerous
times. and upon call loans aggregat.
ing hundreds OF millions OF dollars.
The majority OF national banks In
New York city arc absolved from the
practice OF exactins excessive rates.
but with reference to a small group
INV
comptroller said enormous amounts
have been loaned at 'Indefensible"
rates OF interest. With the official
records OF more than thirty national
banks of New York before him. the
comptroller cited two or three which
were reapIng from 20 to 25 per cent
on outstanding demand loans amount
ing to S75. 5.000. 900 and other sums
only slightly below that hsure al
varied dates. For example. the
comptroller pointed out that on jan
uary 2 last, the three banks selected
were lending at 1S. 20 and 20 per cent
interest about S75.0O0.OOO.
On January 3. 4. and s. the same
banks were lending at 1S per cent
from sec. .o0O,00 to $1o.0OO.0oo. More
than $40, 900, 600, he stated, was being
loaned by the three banks OH Feb
ruary g.. at from 20 to % per cent
Numerous other instances OF like
character were referred to by the
COMPTROLLER He said that as late as
the end OF June, II appeared that In
terest ais high as II per cent was
being deman nded by these, banks on
millions of dollars of call loans.
The complete record of transactions
by the banks in question Is now being
compiled in the comptroiier's ofnce
from the reports submitted py the
banks in response to his QUESTIONABLE
sent out on August 5. Nearly all OF
the national banks have supplied the
information called for, and the comp
troller announced that late and
more comprehensive statement will be
issued. disclosing the extent. Of the
practices which the comptroller holds
to be menacing to the nations bust
ness interests.
The comptroller applauded Senator
Owens Just condemnation" OF the
practice OF charging excessive in
terest rates He added that the prac-
tice. which he now hopes to break up,
has been for some time "a distinctly
disturbing factor in the business and
financial situation.
II am pleased to confirm the state
ment which / made some time ago,
said the comptroller. that although
the aggregate amount upon which un-
Just and oppressive interest rates have
been exacted is very large, majority
of the national banks in New York
city have made a comparatively small
proportion OF their loans at these in
defensible rates"