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Show B EXORBITANT INTEREST RATES. B The report of the comptroller of the currency contains B one feature that will surprise many people, particularly m in the eastern sections of the country. The comptroller B speak of the large reduction secured in the number of B banks scarging high interest rates. In spite of this de- H crease the comptroller still finds 193 banks in Oklahoma i 1 charging more than 10 per cent on an average, and large H numbers also in other states that charge high rates. B It is no wonder that food costs high, when the cliarge H against farm projects is so heavy. It is a very serious H question whether it will pay any bank to try to run busi- H jiess on this basis. H The banks of course will say that they encounter many H losses, and they have to charge a high rate in order to H jniake up. But the heavy tax must tend to make borrow-H borrow-H ers slow pay, and delay their purchase of such tools as H they need. It must tend to discourage borrowers, and H liinder expansion of any section where such rates prevail. H A high interest rate for the time being makes a bank V, more profitable. But the banking business depends on B' sound conditions prevailing in the industries of the cornel corn-el munity. When industries have to pay 10 per cent or more m - for borrowed capital, their condition seems precarious. B' This condition must react on the people who provide m the capital. Of course the farm land banks are devised B to handle this situation. But still the old line banks and B mortgage companies will no doubt for many years loan1 B larger shares of the farm capital. They should feel their B prosperity depends on placing the industry on an econ-B econ-B omical basis. o |