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The nonpartisan leader. [volume] (Fargo, N.D.) 1915-1921, October 14, 1915, Image 2

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Persistent link: https://chroniclingamerica.loc.gov/lccn/sn89074443/1915-10-14/ed-1/seq-2/

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Banks' Charges Arje
Like Darkest
Frankfort Ky., Oct. 6.- -Nearly one
seventh of the- 7,615 national banks of
the United States receive an aver
age rate of 10 per cent per annum,
or more, on loans. This statement was
made today John Skelton Williams,
Comptroller of the Currency, in a
speech to the Kentucky- Bankers" as
sociation-. Some banks charge 40 to
60 per cent and one case was report
ed where a bank loaned a" washer
woman $3.50 for six days and charg
ed her one dollar, "a rate of 2,400 per
cent per annum.
"Disreputable Extortion."
A majority of the national banks
"are new conducting their business
on a "ttlgh and honorable plane, and
are charging fair and reasonable ratfes
on loans/' Mr. Williams said, but the
bankers that charge e/csgjivo rates
'know, and you and I jo/ -that such
rates are disreputable and without
excuse, whatever the stfcuvity for the
loans may be. The bank that lends
at such lates is destroying its con
stituency and is at the same time
committing slow but s.ire' suicide.
Some reports from the South' and
West, the Northwest and the South
west, especially in the wheat and
cotton sections! of the Southwest, are
blood-curdling They arie like- stories
from darkest. Russia^ of the oppres
sions inflicted upon the peasantry.
The reports received at the comp
troller's office show- indisputably
that in some states and sections bor
rowers and especially small borrow
ers, have been and are being sub
cted to. extortions and exactions
which the average man. would con
sider impossible in this enlightened
Where the Offending Banks Are.
The list of banks that get rate3 av
eraging more than 10 per cent are:
Texa3 315
Oklahoma 300
Nortlr Dak«t» .................. 90
Montana 38
Colorado ...., 37
Idaho 33
South Dakota.. 25
New Mexico !J5
Georgia ...
Alabama ..
Florida ...
.. 23
.. 21
.. 18
.. 17
.. 14
.. 13
.. 10
..." 3
Sn'attlbrhiwtrs HH Har ifcH
In one Southwestern state, said Jlr.,
Williams, 131 banks reported they
charged a .maximum .rate of' interest
of from 15 to 24 per cent sixty
seven banks a^maximum between 25
.and 60t per cent, twenty1two -banks
10ft per- ceht, eighteen betwveen 10Q
and 200 pes cent and eight-between
200 and 2,000" per -cent.
.•v "Most of these disgraceful rates,"
said the comptroller "were for com
paratively- .small loans." The' legal
rate ia .the state wa»€ per cent 'and
the maximum authorized by special
eoctraet, lfr per ceirt.^2i':-^'^c'S
Working- our baeks. may raJsevwheat
Imt'Lt wonft get a raise-out of 4he
3 ieItaBttwiK»jare^«Bttin&o:ur wheat^
The fight fgri que pit,
This is me war in which nointellU
grmtr man irift Trmoin nfwrtiHrti •+."•••
McAdoo Juggles With
Treasury Figures
Something from!W\
(By Angus McSween)
Washington, Oct. 20.—Juggling the
treasury statement so as to show a
fictitious net cash balance in the
treasury, Secretary McAdoo's latest
achievement, has caused widespread
Deceiving the public is a practice
resorted to by politicians, but gener
ally the deception is effected in such
a manner that it is difficult to prove
that the politicians' assertions are un
true. In this instance the attempted
deception is. so palpable and the at
tempt so brazen that reliance is plac
ed obviously upon the inability of the
public to understand what is being
-done, or the scheme would not have
been resorted to.
By a mere change in the form of
the. treasury statement just issued
the net cdsh balance in the treasury
has been increased by $85,000,000 al
though hot one additional dollar has
been placed in the treasury.
This has been accomplished by Re
moving from the liabilities of the
treasury the balances of the disbur
sing officers and adding these balan
ces to the net cash balance.
Did not Have Courage.
In removing the balances from the
liability column, however, Secretary
McAdoo did not have the courage to
place them in the assets column. Yet
the net cash balance in the treasury
is a real asset and, therefore, if these
disbursing officers' balances are to be
included in the net cash balance, they
are alw presented as assets of the
treasury, the balance being the dif
ference between treasury assets and
treasury liabilities.
Liabilities of the treasury are cre
ated by appropriations made by'con
gress. All expenditures by the gov
ernment, are made by disbursing of
ficers whether in the payment of bills
on account of government contracts
or the salaries of many thousands of
government employees.
The disbursing officers make state
ments of the immediate bills that
must be settled, and the money is
rjaoed to their credit against which
they draw their checks. The secre
tary of treasury himself signs the
document which places the money at
the disposal of the disbursing officers
for immediate expenditure.
Once these document? are signed,
the money is as far removed from the
control of the' treasury as if it had
been taken by the secretary from the
vaults and handed over to the dis
bursing officers. In the treasury de
partment these accounts are carried
as balances of the disbursing officers.
But they are balances of the disbur
sing officers because the disbursing
officers need the money for immed
iate necessities..
Removed LlabiMitts
In th£ accounts of the disbursing
officers every dollar placed .to their
credit is -matched by a debt of th
government, which these officers are
called upon to pay. These debts of
the government do not shotfr in the
accounts of the treasury department,
and therefore the- amounts placed t»
the credit of the disbursingofficers
have always heretofore been carried
as liabilities of the, treasury because
they represent liabilities which the
government ia to meet through its
disbursing officers.
The manufacturer figures mterest
on every dollar he has invested and
capitalizes lus "good will. Then
Tie charges a good* big additional pro
fit and pays himself a fine salary for
nipervision. Try doing- this with your
farm plant. This is the only way
tt find oat how prosperous you are.
Scotfs Mission to
Mexico in Interest
of Certain
Washington, Oct. 20.—How the gov
ernment protects some of the Amer
ican interests in Mexico from lawless
depredations, while lea® influential in
terests are left to shift for themsel
ves, is the burden of the most recent
disclosures of conditions south of the
Rio Grande.
It transpires that the rsal object
of the trip* of General Hugh M. Scott
chief of-staff of the army, made to
Mexico in August, was to.prevail up
on Villa to cease alleged persecutions
of the rich mining companies in Cfci
hauhau, in which American capital
ists are heavily interested: Villa was
preparing to exact tribute from the
arid his soldiers were com­
mitting all sorts of depredations on
the properties.
General Scott, who is a personal
friend of Villa, concluded a .treaty of
peace between the northern general
and the mining companies. His work
was so satisfactory to the American
interests that he received a message
of thanks from the United Mining End
Smelting Association.
Policy of Suppression
As a result of the policy of sup
pression and censorship the origin of
the influence that procured atJjjjjeis
tration aid for the big miningiSSirm
panies is enveloped in mystery. ||The
holder of one large American inrasst^
ment in Mexico, who is known 3
republican party leader, says hj
been unable to induce the edmi
tion to. protect his property fronr^ie
Villa raids. The Wilson order to all
Americans to leave Mexico compelled
thousands of small owners to abandon
their properties to the bandit looters.
Immediately after General Scott ob
tained immunity for the mine owners
the administration permitted Villa to
resume shipments of dressed meat
into the United States, whereupon he
reopened his Jaurez packing plant.
Villa ships the carcasses to Kansas
City at a profit of $10,000 a day. The
products of this plant were barred
from this country last May by the
department of agriculture because of
insanitary conditions of slaughtering.
This is General Scott's version &f the
'I was sent to the border by the
state department to confer with Gen
eral Villa over the mining conditions
in Chihauhua. The mine owners were
having difficulties with Villa's troops,
and I was sent, there to straighten
these matters out. I think that I~wa»
Lansing Telegraphs
"1 made no trade with him to re
open' the -Jaurez. packing plant. Be
fore I ieft Washington I y?as given
a marked-copy of the United States
regulations' for killing cattle and 1
was asked to give.it to Villa. When
I arrived in El Paso I received a tele
gram from Secretary Lansing saying
that if Villa would issue a decree in
accordance with those regulations an
arrangement had been made with Sec
retary Houston whereby the meat
from the plant could, be imported in
to the United States.
"I communicated this .fact to Villa
and I ^understood that his decree was
issued, and that ia former United
States meat inspector was plased
charge of the'. plant." l$
"The* products of. Villa^s.. pafclring
plant ars now being.'shipped ixJto the
United States. It. is charged that
many of the cattle^" slaughtered are
first Stolen frotti ranches ip i^e..,Unjt?
ed States by Villa, raiders.
Manifestly, the shipment, of meat
from -Mexico at' a time whe».t&e Men-:
ican pieople are starving ~hss its- pe
culiar aspects.
Ten Cents ar Vote
Was the Market
Price in This
Indianapolis, Iiid.-—One of the sur
prising disclosures«at the trial of
Mayor Bell is the cheap price of the
votes. Men were hribed to vote for.
ten-cents apiece, and even for a drink
of whisky.
Big Chief" O'Leary, an ironwork
er and political friend of Mayor Bell
is one of the men indicted. He has
turned state's evidence and testified
that he was given a $10 bili and told
to go "after them." He did go after
them and got eight men to vote for
one drink apiece, three men voted for
one supper each, and a cheap meal
at that,
Persons who believe that it takes
big fjums of money to corrupt an elec
tion ought to read the testimony of
"Big Chief" O'Leary.
He said he worked for the Demo
cratic party in the election, lie was
sent to a voting place and when he
got there four or five men came out
of the alley and asked him:
'Are you putting out anything?'?
"I told them," testified O'Leary)
"that I would give them the price of
a drink if they would go Li and vote
under instructions. Then I went to
the polls and said to the clerk that
five men would vote under instruc
Did you see a man named Caliihan
«Tfbs r^SWT^Xberfc"*
"What did the five men 4o?w ..
•'They went in and voted/' £.
"What was then done."
"The clerk said 'O. K..'
'What did you then do?"
'I gave each of th^m ten cents- for
a drink."
"What did you then do?"
"Three more men came out of the
'fclley and I voted them."
'What was done, then?"'
"The clerk looked out of the win
dow and said 'O. K.' Then I gave
each of these men ten cents.
Hankow,. China, Oct. 11.—Prices of
eggs, chickens and other poultry are
ao low in the ¥an-tse-Kiang valley
that an English company has- devel
oped a large business in shipping
such produce to Great Britain.
Practically every Chinese family in
the remote country districts, as well
as in the towns and cities, keep ehick
ehs. The price of eggs in the- vil
lages accessible to river transporta
tion is. about 3 cents gold a dozen.
Spring chickens sell for about 6 cents
gold each. In remote interior points,
where coppef coins still are largely
in use, the-prices are much lower.
Portland, Ore., Oct. 11.—-For the
second time this season dollar wheat
became a reality in the Pacific North
west recently. The advance was
made in the face of the most de
termined opposition of both the do
mestic and foreign trade. Several
options of large sized lots of wheat
were taken by Easterners,- as well as
by export interests on the basis of
$1 a bushel, Portland delivery.
Oats this year will exceed the rec
ord crop of 1912 by atawyst 166,OCO,
000 bushels. Barley will exceed its
record by 13,000,000 Kusteb -sweet
potatoes by 5,000 000 bushels rice by
£00,000 bushels, ,and hay -bjr $000,QC0
The Leader fight for the mnre.

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