Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1920-10-23
CITES INSTANCES OF
EXORBlTANT RATES
BANKERS SWORE TO
- Continued from First Page

while two days previously it was
sloanins q, II per cent S2I.l00.o0o. ana
a; 6 and IS per cent $4,000 more
Another day this bank reported that
loans at II 10 20 per cent exceeded
Si7,0o0oo0. on December ~ last the
same banl; made eleven new loans
for over 50 600. 600 at - per cent, and
-"n January 1t mSIc iifty-thrc. new
loans aggrcgatinS 0,0oo,00O Il; IL
nor cent. in addition 10 some mil
lions already out At IL per cent.
"S;iu another bank reports tha.,
on a particular date during the pas.
year. it was charging on loans for
rs own account 50 per cent on So
10000, IL per cent on 100000. u
a.pcr cent on SIC. zoe, 600. On another
date the Same bank was charging -
,per cent on s2.o00,o 900 and II per cent
IN ss,2Oo.o0o additional with other
loans al the same time bearing :. :.
. and 10 per cent. This particular
u4nk has through this period been
lending. as have other banks. many
ruillions more at eXorbitant rates Tor
corresponding banks The foregoing
figures relate to only .our of the tar
,y-four national hdlks in New Yoct
CITY, ana they are matters of record
most OF those New York banks. a
few Of whose loans are given above.
wElc lending "a, these very in lc.
f"usiblc rates sometimes % ana so
par cent. Mere being accommodate, Il
a., ;hc same time ~ IA per cent ana
yer cent by The Federal Reserve
Sank Of New York with sums as
-rcat o. greater than their loans re-
cited above They were therefore &c.
as!onaly charging borrowers 20 tic
=, per cent note !n;cres, than ~.
rates they ia.I The reserve bank.
system Fn,ors Brokrr>.
The amount actually collected for
co. interest and DISCOUNT. by the thirty
f9ur natiGna! banks in New York
city FOR ia" six months ending june
80, 1870. exceeded all previous
records. and amounted TO !,pproNi.
mHlcly Slrnuou.opO. which was near
ly s5o,Ooo.oQe or nearly 100 per cent
an excess OF similar reccipts for III,
corresponding period in l"l1.
iaje in New YORK ci;y Tor the wnol'
This was more than double the nor
NAL average for call money.
Whi!G nearly every national hanl
IN New Grk City has admitted tina
It's rates on The so-callcd street o
brokers loans are marked UP %
down automatically from day to da.
. .a'
can money rate Yet reports from
some banks SHOW a marked dis
c-iminanon. and that they exact o,
some Of the Wcilsecurcd loans rate!
- considerably in excess OF the so
FsSraiied daily renewal rate. Will
other banks adhere quite closely {,
that rate
LAS 10 tho large amount Of cal
Loans held by national banks for &C
count OF correspondents tower $500.
"Vo.ooo2, II may be OF. interest I
state that the New York banks. 70
lhetr services in handling thcs
loans make varying charges-somc
INES a fractional commission i
charged; sometimes in view OF IN
deposit balances carried. no charc
Is made, while AT other times tn
New Yo-i, banks and their outsid
correspondents divide evenly the In
,crcst collected in excess OF ~.
cent per annum.
New York, as ! have stated be
lance in the world where such in
i"rest rates a. these exist or ar
tolerated They have. in my opia
ion, been most costly 10 the cntir
country and cannot Ice justified o
any basis OF economies or ethics.
Bankrrs' Responsibility.
Tine plainly, !ndlsputably prop.
'oprse is change q, policy AMI refos
nation OF abuses which have come al
most irnpcrccr. bly,, not loose az.
Wholesale criticism OF the man tryin
20 heavc the lead line and give warn
ing Of shoals The point is no, IN
qualities or intentions az the offcia
nut whether tho shoals are there VI
work IS TO report them and prov
Agi.ere they are My strong faith
that the bankers OF the country wi
ind and apply cure for the cvi! ;ha
has been shown They have on the,
now some % the heaviest and mos
6iffcrlt possibilities which eve
rested on ii financial body The We
fare not only ~ their own count-
hut of the world. depends In a gre;
measure on their wisdom and chara,
ter believe they viii meet II
test. The most important part OF n
comptroilcr's work !s 20 help thcr
80 he may. There Ia no better way
liflp than ~ detect and point on. ol
s;acies ana pcrils in their path =,
ward performance OF the tremtndo,
y work they have TO do"
Controversy aver charges made !
John SHELTON Williams Comptroll
~ the. Currency against certain Ne
York bankers, came TO a head tod:
al the concluding session OF q
american Bankers Association co
A.. yent!on. with the adoption OF a res
luton condnmning "uttcranccs" of :
individual Action was tal
zen over tho protests OF several rner
~ Der banksrb. who argued that the CO.