The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-10-23
WILLIAMS REVIEWS
HIGH LOAN CHARGES
Again Accuses New York
Bankers of Charging 25 P. G.
for 6 P. c. Money.
PROFITS ARE ENORMOUS
Currency Comptroller Says He
Is Sure Financiers Will Act
to Remedy Evil. .
;peciar Despatch to THE New YoaK HERALD.

Special Despatch to THE New YORK HERALD.
New York Herald Bureau,
Washington, ID. c., Oct. 22.
Coincident with the action of the
bankers convention on his charges In
regard to exorbitant interest rates on
call loans in New York city Comp
troller OF the Currency John Shelton
Williams issued another statement to-
day emphasizing that he was not at
lacking persons on interest but sys-
tenn which he regarded as one dam
gerous to the welfare of the nation.
Mr.. Williams went after his critics
and cited proof that billion dollars of
New York loans were affected by inter-
est rates artifically fixed. Criticism of
his position, he said, is vague and feeble,
while he hoped it would be strong and
constructive.
1--WE find for example," he said "one
national bank declaring that loans made
by 1t In the period covered by my state
ment at rates in excess of 10 per cent.
per annum aggregated $448.000, 600, in
Guiding S186,000,000 (1,426 loans) at
rates Of 10 per cent. and over. On a
certain day within this period another
bank reported that, on loans for itself
and correspondents, 1t was charging is
per cent. on s55.895,000. and 18 per
cent, 10 per cent and 90 per cent. on
$3,600,000 additional. The same bank
admitted exacting on another day IS
per cent. on S57,163,000, 20 per cent. on
$1,4OO, 900 and 25 per cent. on S14,055.-
600. On three days early in January
the amount on which this bank was
charging IS per cent. exceeded $685.
SOC, 900.
Another New York national bank re-
ported that it was charging on GER
tain day on loans made for It's account
16 per cent on $23,500,000. while two
days previously 1t was loaning at IA per
cent. $27. 100000 and at 16 per cent. and
IS per cent 1915, more. Another
day this bank reported that loans at IL
per cent. to 20 per cent exceeded S17,-
100000. On December 81 last the same
bank made eleven new loans for over
81 900, 900 at 25 per cent. and on January
It made fifty-three new loans aggre-
eating S10.000,000 at 10 per cent. in ad-
dition to some millions already out at IL
per cent.
"Still another bank reports that on a
particular date during the last year II
was charging on loans for its own ac-
count 20 per cent. on $2,15O,O 600. IL pei
cent. on 100000 and Is per cent or
s1O.9O0.0 900. On another date the same
bank was charging 22 per cent. or
100000 and IL per cent. to l6 pei
cent. on Ss,200000 additional, with other
loans at the same time bearing pei
cent, per cent. . per cent. and 10 pei
cent. This particular bank has through
this period been lending, as have other
banks many millions more at exorbitan
rates for correspondent banks. The
foregoing figures relate to only four o.
the thirty-four national banks In New
York city, and they are matters OF re
cord.
"It is of interest to the public tina
most of those New York banks, few
Of whose loans are given above, while
lending at these very indefensible rates
sometimes 25 per cent and 80 per cent.
were being accommodated at the earn'
time at Az per cent. to per cent. by
the Federal Reserve Bank of New Yorl
with sums as great as or greater thar
their loans recited above. They were
therefore, occasionally charging Dor
rowers 20 per cent. to % per cent. more
interest than the rates they paid the
reserve bank
'The amount actually collected fol
interest and discount by the thirty-foui
national banks in New York city fol
the six months ending June 80. 1920
exceeded all previous records and
amounted to approximately 100000, 900