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The Commoner
OCTOBER, 1914
the New York banks is Justified in the circum
stances. "Within the last six weeks I have approved
the issuance to the national banks of New York
City of more than $140,000,000 of new or addi
tional national bank currency. This was done
for the purpose of easing rates and helping the
situation generally.
"Tho New York banks generally have not been
hoarding money or maintaining excessive re
serves, but they appear to .be charging higher
-rates of interest than conditions seem to justify.
I am using every just effort to persuade the banks'
throughout the country to extend reasonable
rates of interest to meet the existing unusual
conditions created by tho European war, which,
if dealt with in a helpful spirit by all concerned,
should quickly ameliorate.
"I should like to see the New York banks take
the lead in establishing and maintaining moder
ate rates of interest for accomodations, as their
example always has a large influence upon bank
ing action and sentiment. in the country. If this
course is pursued by the leading banks in New
York and other great money centers, a real pub
lic service will be rendered and a return to nor
mal conditions of business will be quickened."
Many responses from state superintendents of
banking were received by Secretary McAdoo
pledging their co-operation in furnishing infor
mation with respect to the hoarding of money
by state institutions.
Washington, D. 0., September 20, 1914. The
following is a copy of a telegram received by
Secretary McAdoo from M. A. H. Wlggin, chair
man of the clearing house committee of New
York:
"Now York, September 25, 1914. Your tele
gram received. Except on some Wall Street
loans on paper placed- by brokers, the rate
charged to customers and to correspondents by
New York banks does not exceed six per cent.
Please give us the specific instances to which you
refer and, while we have no authority to control
thd rates of interest charged, if there is any action-
that is unjustified or unreasonable, we will
iiso our influence to correct it. It is the desire
of New York to set an example that cannot be
criticized."
The secretary sent the following telegram to
Mr. Wiggin in reply:
"Washington, September 26, 1914. Replying
to your telegram received last night, as a specific
instance I am informed by a large bank in the
south that the (names of two banks in New York
City have charged it seven per cent on loans ag
gregating in each case more than a quarter
million dollars. As is usual in such cases, the
complainant naturally does not "wish to have
identity disclosed, but if these banks deny hav
ing made such loans at seven per cent interest, I
will take the matter up with the southern bank
to which I refer and get further details. I am
pleased with the assurance in your telegram that
the Now York clearing house will use its influ
ence to correct any unjustified or unreasonable
charges on the part of its member banks, and' J
appreciate the spirit which is manifested in your
statement that 'it is the desire of New York to
set an example that can not be criticized.' "
Washington, D. C, September 28, 1914. Sec
retary McAdoo received the following telegram
from Mr. A. H. Wiggin, chairman of the clearing
house committee of New York:
"Have made investigation of matter referred
to in your telegram of the twenty-sixth. First
named bank states it has not charged any bank
more than six per cent interest, and asks that
tho complainant give you pa-ticulars or with
draw the charge. Second bank named states em
phatically that they have no loan in their insti
tution of any kind or nature at over six per cent,
and request name of complainant. The-clearing
house committee in justice to its members urge
that you give us the name of the southern bank
referred to, and withdrawal of the charge."
' The secretary sent tho following reply to Mr.
Wiggin:
"Telegram received. On Friday last, the
twenty-fifth instant, (name of--officer of a bank
in the south) stated to me, Assistant Secretary
Malburn and Comptroller of the Currency Wil
liams that (names of two banks of New York
City) had each charged (name of the southern
banlc) seven per cent on loans aggregating large
amounts. This afternoon Assistant Secretary
Malburn received letter from Mr. (name of
-southern bank officer) in which he states: "I
find upon investigation that the rate" charged
to us by (name of one of the New York banks
referred to) is six per cent the same as (name
f the other New York bank referred to)."
I am at a loss to understand how Mr.
(name of southern bank officer) could have made
an error, as his statements to us about tho seven
per cent rate were positive. I am asking Mr.
(name of southern bank officer) for a further
explanation. I am glad to discover,-however,
from his corrected statement, that the banks in
question are not charging his bank seven por
cent on loans, as I certainly have no doBirc to
do injustice to anyone."
Washington, D. C, September 28, 1914.
Secrotary McAdoo received the following tele
gram from Mr. T. B. Beal, president of tho
Boston clearing house association:
"In reply to your telegram of September
twenty-five, received too lato for action laBt
week, the clearing house committee begs to state
that to the best of their knowledge, six per cent
is the almost universal rate charged by banks in
Boston to other banks for advances or re-discounts.
Wre have impaired our reserves without
hesitation in order to take care of all deserving
customers, and we do not hoar of any complaints
on their part. Should you have such specific in
stances, please advise us."
Citi-
"HOARDING BANKS" OF COUNTRY AS
NAMED BY SECRETARY McADOO
Tho list of national banks which Secretary of
the Treasury McAdoo charges are carrying re
serves in excess of the legal 15 per cent mini
mum is as follows by states and reserve percent
ages: NEW ENGLAND STATES
Maine Bath National, 85; First National,
Biddeford, 32; Biddeford National, 27; Messa
lonskee National, Oakland, 25; York National,
Saco, 27; South Berwick National, 44.
New Hampshire, Manchester National, 40;
Merchants' National, Manchester, 34; First Na
tional, Newport, 32; First national, Somers
worth, 39.
Vermont Howard National, Burlington, 30;
Rutland County National, Rutland, 29; Wood
stock National, 40.
Massachusetts First National, Clinton, 30;
Metacomet National, Fall River, 81; National
Grand, Marble Head, 43; Mllford National, 40;
First National, New Bedford, 47; Merchants' Na
tional, New Bedford, 29; Old Colony National,
Plymouth, 28; Plymouth National, 28; Shel
burne Falls National, 29; Machinists' National,
Taunton, 38; Bristol County National. Taunton,
27;
Rhode Island Providence National, 41.
Connecticut National .Exchange, Hartford,
33; Middletown National, 26; Naugatuck Na
tional, 35;. Second National, New Haven, 36; New
London City National, 25; Thames National,
Norwich, 30; First National, Putnam, 29; Stam
ford National, 33.
EASTERN STATES
New YorkChester National, 34; First Na
tional, .Corona, 28; National of Coxsackle, 44-;
Home National, Ellenvllle, 58; National Chau
tauqua County, Jamestown, 26; Keesville Na
tional, 28; National Union, Kinderhook, 36;
First National of Rondout, Kingston, 51; State
of New York National, Kingston, 32; Sullivan
County National, Liberty, 28; Commercial Na
tional, Long Island City, 28; First National, Low
ville, 36; Black River National, Lowville, 35;
Mount Kisco National, 42; First National, Port
Henry, 61; Union National, Schenectady, 41;
United National, Troy, 34; First National, War
wick, 48; National of Watervliet, 42.
New Jersey Atlantic City National, 26; At
lantic Highlands National, 26; Bloomsbury Na
tional, 47; Carlstadt National, 25; First Nation
al, Clinton, 28; Central National, Freehold, 47;
First National, Jersey City, 41; Third National,
Jersey City, 31; National State, Newark, 37; Me
chanics National, Trenton, 30.
Pennsylvania First National, Barnesboro, 26;
First National, Columbia, 29; Columbia Nation
al, 25; Harrisburg National, 30; National, Johns
town, 38; Lewisburg National, 34; First Nation
al, Newcastle, 30; First National, South Fork,
25; First National, Selins Grove, 29; First Na
tional Strasburg, 49; Second National, Titusvillo,
27; National of Fayette County, Uniontown, 34;
First National, Warren, 29; East Pittsburgh Na
tional, Wilmerding, 34;
Maryland Farmers' National, Annapolis, 26.
SOUTHERN STATES
Virginia Planters' National, Fredericksburg,
32; First National, Graham, 41; Marshall Na
tional, 45; Tazewell National, 29; First National,
Wytheville, 27.
West Virginia Citizens National, Morgan-
town, 40; First- National, Slstorsvillo, 27;
zons- National, wncoiing, 30.
North Carolina Concord National, 28.
South Carolina Central National, Sparlang
burg, 26.
Georgia National Exchango, Augusta, 3;
Third National, Columbus, 02; City National,
Dawson, 46; Jackson National, 67; First Nation
al, Lyons, 33; La Orange National, 64; Atkin
National, Maysvillo, 29; First National, Rom,
25; Exchango National, Romo, 38.
Florida First National, Arcadia, 30; Citizen
& People's National, Pensacola, 28; National
Bank of Commerce, Pensacola, 19; First Nation
al, St. Augustine, 27.
Alabama First National, Montgomery,- 30;
Exchango National, Montgomery, 27; First Na
tional, Opellka, 28.
Mississippi First National, Greonwood, 48:
First National, Greenville, 25; Capital National,
Jackson, 34;
Louisiana First National, Jcanerette, 33;
Louisiana National, Baton Rouge, 29.
Texas Farmers & Merchants' Nat. Comanche,
41; State National, El Paso, 02; Ennls National.
44; Ferris National, 47; First National, Frost,
50; National of Grand Sallna, 45; Hamilton Na
tional, 47; Jacksboro National, 41; First Nation
al, Kaufman, 47; First National, Kemp, 74;
First National, Valley Mills, 42; Victoria Nation
al, 45; National of West, 47.
Arkansas First National, Eureka Springs,
3J; First National, Huttig, 44; Gorman National,
Little Rock, 28; First National, Newport, 43;
First National, Tuckerman, 46; First National,
Van Buren, 40.
Kentucky Plalntsvillo National, 30; Ashland
National, 26; State National, Frankfort, '28;
First National, Owensboro, 26.
Tennessee ClarksvJllo National, 45; First
NationaflkMemphis, 30.
MIDDLE STATES
Ohio Farmers National, Ashtabula, 40; First
National, Ashland, 40; First National, BJancbea
ter, 35; Winters' National, Dayton, 42; Teutonic
National, Dayton, 29; Wayne County National,
Wooster, 33; Farmers' National, Willlamsport,
30; Citizens' National, Xenia, 35; Xenia Nation
al, 46.
Indiana 'First National, Mays, 58; Second
National, Richmond, 35; People's National,
Rushvillc, 37.
Illinois State National, Bloomington, 32;
First National, Bloomington, 41; Champaign Na-
tional, 55; German-American National, Lincoln,
30; Grundy County National, Morris, 45; Farm
ers' & Merchants' National, Morris, 46; Peru Na
tional, 34; Rock Island National, 42; Union Na
tional, Streator, 40.
Michigan First National, Bay City, 29; First
National, Lake Linden, 33; Hackley National,
Muskegon, 27.
Wisconsin Rock County National, Janesvllle,
26; First National, Kenosha, 25; First National,
Monroe, 26; Manufacturers' National, Racine,
27; First National, Whitewater, 28.
Minnesota American Exchahg6 National, Du
luth, 38; City National, Duluth, 29; First Na
tional, Park Rapids, 38.
Iowa Union National, Ames, 45; Centerville
National, 40; First National, Gowrle, 26; First
National, Galva, 33; First National, Indlauola,
27; Fanners Natidrial, Kingsley, 26; Commercial
National, Waterloo, 27.
Missouri First National, Joplin, 37; Cun
ningham National, Joplin, 39; Joplin National,
30; First National, Liberty, 30; Scotland County
National, Memphis, 4C"; Union National, Spring
field, 40; McDaniel National, Springfield, 38;
First National, Stewartaville, 70; First National,
Plattsburg, 48; National of Webb City, 31; Peo
ple's National, Warrensburg, 39; First National,
West Plains, 36. -
WESTERN STATES
North Dakota First National, Buffalo, 27;
First National, Dickinson, 35; First National,
Grand Forks, 26; First National, Goodrich, 29.
South Dakota First National, Dead wood, 31 r
Scandinavian-American, Sioux Falls, 62; Minne
haha National, Sioux Falls, 25; Sioux Falls Na
tional, 48; First National, Watertown, 26.
Nebraska First National," Wisner, 34; Citi
zens National, Wisner, 34; First National, Wy
more, 29.
Kansas First National, Edmont, 50; Emporia
National, 39; Farmers' National, Goodland, 52;
First National, Hutchinson, 52; Commercial Na
tional, Hutchinson, 38; Leavenworth National,
Leavenworth, 35; Farmers' National, Salina, 37.
Montana First National, Butte, 41; Yellow
stone National, Billings, 36; First National,
Great Falls, 35; First National, Glasgow, 29.
Wyoming First National, Douglas, 49 ; Doug-
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