Evening star., 1921-02-07
M|DDLEMAN KEEPS
PRICES HIGH, SAYS
WILLIAMS REPORT
Controller of Currency De-
cIares Public Has Not Shared
in Full Cut of Costs.
IRON. STEEL AND COAL
MUST COME DOWN SOON
Never in History Were Banks Bet.
ter Fixed-Country on Sound.
est Base in Years.

The country is now in many respects
on sounder basis. economically. than
it has been for years. Controller OF
the Currency John Skelton Williams
Informed Congress today in what he
described as his Seventh and last an
nual report"
Deflation. obviously inevitable a
year ago. has come. he said. and prices
of many basic commodities and raw
materials have returned to pre-war
levels or below. 1T now remains for
the middlemen," the controller de-
clared. ito adjust their profits to the
new prices before the ultimate con-
sumer will receive the benefit of the
reduced cost of living"
Labor, however. Mr.. Williams said,
must soon determine whether "A shut
down and idleness is preferred to a
lower wage scale which takes into
consideration the lower living
charges. Mills and factories cannot
afford to operate unless they can turn
out commodities for prices the public
can afford to pay. he asserted, and il
is better for the manufacturers to op-
crate and produce goods at cost or at
close down entirely. Participation by
labor with capital in the profits he
suggested as the only principle to re-
store business.
Foreign Conditions Affect U. 8.
When conditions abroad become
more settled or stabilized" Controller
Williams declared in a summary Of
the present outlook. land when at
home much needed adjustments are
erected IN ha
OF steel and iron products, which are
still quoted about twice their pre-wa
prices. and when coal, for which the
government itself has paid in recent
months as much as four times the
pre-war price. and certain other COM
modities which are now being kept
up artificially or as result of monOpo-
listic control far above the pre-war
figures. get back to normal level, our
country. resting on a solid foundation,
and. let us hope. long-enduring era
of prosperity and healthy progress"
During the fiscal year ended June
30, 1920. the controller said, there
tion. the highest number ever re-
ported, and despite the difficulties en-
countered they made the best record
in immunity from failure in about
forty years. The percentage Of the
capital of failed banks to the total
was about two one thousandths OF
per cent. or eighteen times better
than the average for the entire nifty
seven years since the Inauguration
of the system.
Have Big Bank Resources.
Combined resources of all banks in
the country on June so, 1920, includ-
ing national. state. and federal re-
serve, the controller said. aggregated
$59.153, ,704 900.
Figures showing for the first time
the business of the principal borrow.
ers from national banks were pre-
sented by the controller. Loans and
discounts on November IS, 1920. he
said. aggregated $13,7 ,764 900, 900. OF
which loans to farmers and live stock
raisers amounted to S1,99S 900. 900. or
IA per cent: loans to manufacturing
concerns approximated 81, ,S62 600 600
or q per cent; to merchants. mercan-
tile concerns, individuals in the Job
bing business and trading wholesale
and. retail. S3.5S1 900, 900. or 26 per
Get. Loans reported to bond and stock
brokers and dealers in investment
securities aggregated 1864. 900, 900: to
railroads. shipping companies. elec-
trio light. light and power companies,
s225 100000, while the loans to pro-
fessional men. including doctors, law
yers. teachers. chemists, engineers and
clergymen. amounted to $375.O0 .000.
Miscellaneous loans amounted to
about $4,000. 100000. or 80 per cent Of
the total. -
Hits Hikh-saIaried Men.
Gross earning of the national
banks during the past fiscal year ag-
gregated s1.1os, 100000. while their to-
which s175,o0o.o0o was for salaries
and wages and s2s7.oo0.0o0 was for
interest on deposits. National banks
in the city of New York showed earn
ings on capital stock of 37h per
cent, Philadelphia national banks 33h
23 per cent, Cleveland 24k per cent,
Minneapolis 21k per cent. St. Louis
17k per cent. Richmond 20k per cent.
Dallas 80 per cent, Kansas City II
per cent and San Francisco Is per
cent, reported the largest earnings in
any reserve city. Birmingham, Ala.
was next. with 39A per cent. and
Atlanta third. with asN per cent.
During the past fiscal year. the
eight cashiers of banks and thirty
assistant cashiers. tellers, bookkeep-
ers and others of national banks were
convicted of criminal violations Of
the banking law and sentenced 70
terms of Imprisonment running up to
six years and varying fines.
Mr.. williams made public table
showing the salaries paid the execu-
tive officers by all national banks
in the country whose resources were
in excess of s2o,ooo.oo0 and showed
the largest salary paid any national
bank president to be 100000 year.
Discussing excessive salaries the
controller declared. Such inequalities
would exist to much less extent IL
the stockholders of banks were in
formed of the salaries paid to their
aawt;ye officers, put unfortunately,
Il is an exception rather than a rule
that the majority Of the stockholders
of the banks are SO informed.
.uoDrA urnAFSo ALONG