Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1921-02-08
COUNTRY NOW ON
SOUND FINANCIAL
WILLIAMS
Comptroller Asserts Prof
iteer Class Must Be
Stamped Out.
GUARANTY LAWS FOR
BANKS RECOMMENDED
Charges Many New York Bank
ers Are Still Exacting
Exorbitant Rates.
ARE NOW IN GOOD SHAPE
Financial institutions OF Countr,,
Wcathcrcd Storm in Spite
of Many Sctbacks.
ARE NOW IN GOOD SHAPE
Financial Institutions OF Countr,.
Weathcrcd Storm in Spite
of Many Sctbacks.
Bl w. Y. ATKINS.
International News Service sian
Correspondent.

Correspondent.
WASHINGTON. Feb 7.-Thc nation
'oday IL upon Il souudcr basis. fnan-
eiaiiy and econoinically. than II ha,
"cen FOR many years and Will enter
npon an -" OF healthy progress when
prices of commodities are further
si""ii!zed Comptroller 81 the Cur
r"ncy JOAN Shelton Williams said to.
dhy IN Ia" annual rcpor, to Congress-
Comptroller Williams ,oIa Congress
there is urgent need in the r.adius,
ment period TO stamp out prcn;ecrs la
money and commodiiies While III.
banking situation ~ growing more
secure. Williams replied tbat con
gress should add 10 this security by
"nactnents that wilI improve the
banking system and increase the
security Or bank dcpositors
Among the main Recommendations
!vr new legislation !nnde by. Williams
u one 10 enable soiycnt hanks to-
meet rUns or other sudden c,ncr-
scncies by t.te use with Federal re.
serve banks. Of good sccurjtIcS that
are net nov available :or such pur-
p"Ses II" also urges Congress II
"n"c' Oark guaranty law. NY Nhlca
all deposit balances OF 5000 and less
would ." guaranteed The enact %.
such Law. nc said. would be 10
bring !lunGr,.,l- or millions OF dollars
On, nC hln!HG ana into produc.lv.
iS,
CritIci1cs Gotham, NnnItcr>.
again critie.sing certain New York
bankers. whom he charges with habi-
'uaiiy tN1"t.ng exorbi,an, rates OF
interest of shori-t!inc loans. Comp.
irpll.r Williams asked that an
amendment oe enacted 10 the national
bank act. providing that member
hanks borrowing from Federal re-
serve bsnks shall be prohibited from
charein. more than ia!r and rca
scuabic sdvancc over the rate paid
the -. We banks.
Congress was informed that ,isht-
ness o.: money in the Agricultural ana
producing regions has been .part!y
Iuc to This diversion OF large SUNS
from the interior banks 10 New York
TO hc rcloan.d at higher interest.
During the past year" he said
banks. borrowing from Federal re-
serve banks at from TO per cent.
have been lending funds to their GUS
toners NJ from - TO 80 per cent.
There can he no possible excuse for
such rates. These cXorbitaDt rates
have no parallel in any ether civilized
country. and cannot he defended in
New York" williams said the lcsisla-
tion he suggests would stop this form
OF piracy" and make available TO
mercantile, Industrial! and asricu!-
turc fields. adequate credit for lcgiti
mate needs.
Despite the business strain last
year, williams said. the banks had
shown the best record in Immunity
from failure" in forty years. He es-
timated the shrinkase in values in
the United States last year at from
$4,000, ,0O0, 900 to $4,000. 100000.
The prcciritate decline witnessed
in so many lines" he said, ''cncour-
ages the belief that we are near the
bottom, the fall. in some Instances.
having been already excessive and
abnormal and really not justified by
actual conditions.
Must Wipe out Proiitccrs.
CriticizinG the efforts OF proiiteers
to maintain artificial prices. Williams
said:
The tendency to maintain eXces-
sivc profits is seen particularly in
the steel and iron and coal industries.
IT is essential that prices OF these
fundamental products should como
down to fair and just and normal
basis. IL we arc again to attain the
prosperity FOR which We hope"
Discussing imitation of currency.
Comptroller Williams said present
figures show the proportion of money
in circulation TO the total resources
Of the bahns is now considerably |
smaller than beiuT" the European
war. lie said tho increase i'm circu-
lation OF si,9G2.O0o.O0O last year. is
in holdings OF gold, deposited with |
Federal Reserve Banks. against |
which Federal reserve notes have |
been issued The comptrollcrs fig |
urcs show the combined resources of !
all banks in the United States. in
Guiding national, State and Federal |
reserve, aggregates $59.153,7 ,704. 900. |
National banks have S20.52O.l77 de-
posit accounts. an Increase of s2.- |
200 more than was earned |
before in any previous year.
RICHMOND RESERVE BANK
SHOWS ANOTHER BiG GAIN |
Especial to The Times Dispatch.J
WASHINGTON. Feb. 7.-During the
fiscal year ended October 81, 1920, tho
number of national banks In opera
ton in the United states reached the