Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1920-10-18
FINDS MONEY RATE
FIXED BY FEW MEN
/ IN SECRET COUNCIL
Contributing Cause of Big
Shrinkage of Security
Values; He Says.
ARBITRARY RULINGS AFFECT
REMOTEST CORNER OF LAND
Currency Comptroller Declares
Interest Charges Run Up
to 80 Per Cent.
EVILS TOUCH EVERY CLASS
Asserts New York Only City Of
Consequence Where Such
Condition Exists.
|t
ARBITRARY RULINGS AFFECT
REM0TEST CORNER OF LAND
EVILS TOUCH EVERY CLASS
Asserts New York Only City Of
Consequence Where Such
Condition Exists.
Especial to The Times-Dispatch.)

Especial to The Times -Dispatch.)
WASHINGTON. Oct. 1T.-ScathinG
indictment of system which allows
few members OF the New York
Stock Exchange. arbitrarily and in
secret. to fix interest rates for the
money center OF the nation affecting
commerce and agriculture in the re-
motest corners OF the country, Is
made In statement given out here
today by John Shelton Williams,
Comptroller OF the Currency.
Mr.. Williams declares that New
York is the only city In the world
where such rates, running up to liz
and even 80 per cent and higher.
exist or arc tolerated. He cites
H.10o.oo0.o00 OF such outstand-
ing loans for periods of weeks.
lie declares that this "unjustifiable''
Interest exacted on demand loans, ag..
EreEating billions, Is an active con-
tributihg cause Of exor mt rates for
new capital charged cities. railroads.
Industrial and other public and pri-
vate enterprises and of the hugo
shrinkage during the past year In
all security values.
FoWer 10 HS money rates. MT.
Williams declares. "for all. or nearly
ALI, OF the banks of New York City,
and to change them daily, ia n grip
on the heart OF our commerce. The.
matter OF arbitrarily fixing money
rates at the money center. possibly
reversing tho natural and healthy
How and affecting, directly or indi-
rectly billions OF dollars OF security
values and other property, Is left to
small and varying number of pri-
vate citizens. without official respon-
stbiiity, deciding In a moment and In
secret. The evils and dangers Of such
methods could be rccited indefinitely.
Ihey reach to the remotest corners
OF the Union and It's possessions and
touch harmfully every class OF peo-
ple."
MIR. Williams Statement.
The statement. in full, follows:
I'm a statement given to the press
on July 81, 1920. expressed the opin-s
ion there was no Justification for the
excessive and burdensome interest
rates running up to 10, 1a and is per
cent and higher, which had been ex-
acted by some Of the banks in New
York City, the principal financial
1T is no part of my business IN
discuss now the morality or the
ethics OF these transactions. II SIS
my imperative duty to take clos,
coSnizance OF them SO far as they
may have effec, on the general hank
ing and commercial interest Of tho
country. realize clearly the ines.
Unable and indisputable value to
Nd
the great money center popularly
known as Wall Street, and have no
purpose to wish to stir prejudice
against it. or to do or say ANYTHING
TO impair Its usefulness or to injure
any institution or Individual connect
ed with its activities. do intend.
strictly in tho line of official duty,
to put before the public and the
newspapers facts of which both are
uninformed and to to point out evils
already existing and dangers threat
ened because of those facts.
I'm the statement OF July 81, I
called attention to the fact that New
York was tho only city OF conse-
Quence In the world where such In
terest rates existed or are tolerated,
and I expressed the belief that the
eXaction OF these rates, and the pub
licity given them. had increased the
uneasiness in financial circles and
had been an active contributing fac
tor rather than consequence. in the
upscttinE OF security values, and that
they had operated to force railroads
and industrial corporations to pay
burdensome and costly rates in pro-
vidins fresh capital for the industries
and business OF the country. also
pointed out that the banks which had
been charging their customers these
excessive rates. at tines a. Nigh
ms Is per ccnt or more, have
Themselves at the same time been
literally accommodated WITH
millions of doifsrs by the Fed
erai reserve banks ut average
rates OF considerably less than
per cent.
This press statement was vIeor.
ously attacked In tho columns OF the
New York papers, In Interviews WITH
various anonymo9s bankers and a..
nanciers who refused. however. 10
permit their nnmea TO be uged, One
S ICON tInuAdf on I9Acona pasrN, Is -,~-7,ff