Show BANKS ACCUSED OF EXTORTIONATE CHARGES Call tf ll Money Interest R Rates tes H Held ld Accountable for Fall in Securities t INGTON Oct 18 1 exacted on demand l n New York City banks has hu been active contributing cause of oC j 7 hUgo shrinkage In all security daring the past year ear Comptroller Comptroller Comp Comp- J he 0 of the Currency Williams dc- dc 1 t. t nJ night ht in a statement J It charged that call rates In New 1 ro tho highest in the tho world 14 f renewal tired fired dally rF b E.- E. ill coterie of or stock o ni governed tho Interest charged brokers brokers' fo s' s loans in nearly all New Newt t banks 1 TT S AN SITUATION lie lie- raising or lowering of oC tho ro re a. a rate on the exchange said Mr lams is accompanied or downward do movements In and securities and ret re- re t le for tor tho fixing of ot tho rate rater r tore fore have the o opportunity ex x d or not of oC profiling largely operations on tho stock market Ich lell is EO often and directly affected the call money situation I do not course undertake to say that this r money committee does docs take take- taker lIper r advantage of their tore fore lege ge but there thero are critics who Mt elf censure the tho existing arrange arrange- if 1 Certainly all prudent and business s men will agree that 1 re e Is dan danger er In the concentration t opportunity and pow r in the of a a. few persons Temptation to top t p power for lor individual profit Just arise and human nature is not 1 c by high position Jn In the L I i IL I OF POWER f to money rates for a all I. I near all In of the banks in New York na to change them dally Is Js a grip If 9 heart of our commerce It per per- t interferences as fallible hu- hu nf n judgment whim or or- interest may mayk k direct wi with th the natural and orderly t- t mo of or mone money the life blood of tf l b The matter of ot arbitrarily 1 i fixing money rates at the money cen- cen vV r the natural 1 and andt t healthy flow and effecting direct directly or J i. i Indirectly billions of ot dollars of or li jl values ti lues and Other property Is left leU i Jc sm ll and varying number of ot rk vito citizens without o official jC deciding in a moment arid and in 1 i r t AFFECT ALL CL CLASSES tf The evils arid and da dangers gers of ot suc such v j 1 methods could be IndefInItely They reach to the remotest corners of ot I the union and its possessions nd r to harmfully every class of at people f The he direct tendency is to reverse one 4 or the tho fundamental purposes of th the ed ral reserve act which is to to poj pro pro- orderly distribution of ot j mole money throughout the country to meet the v j of ot commerce and agriculture t. t V Excessive interest rates offered in New York artificially draw f f L c money Joney T away f rom out outside communities I r their banks and often otten leave legitimate enterprises enterprises' starved or pinched while feeding speculative t movements which may be adding noth- noth V. V jing to real leal industrial or commercial ial f h. h I POTENT INFLUENCE i t reiterate that excessive excessive ra rates es on J nall arbitrarily fixed and toler- toler J P 1 1 4 in New York in my opinion have hav j- j P H a a P potent tent influence in depressing i i s seriously the prices of all Investment nt t. t and standard shares th the J shrinkage ge ia In which in the past twelve Wf has amounted including the i depreciation In Liberty bonds to sei sevi sev- sev i i l' l billion dollars I c t. t to a remedy for the tho situation A 1 Mn 1 Williams saw only the hope that I public sentiment will be strong enot enough to bring about reforms and i eX expressed the tho b belief let that the j Jus responsibilities of the New Kew York bankers and financiers would sooner V r later be realized by those who carry carry v- v y se responsibilities He said that i f of them honestly and 4 Y observe ve the obligation to th the they y public now and that they the direct and distinct duties i ff 1 they owe to ail an communities s. s |