In one of these States there were 131 banks which reported that they charged a maximum rate of interest ranging from 15 per cent. to 24 per cent. per annum, 67 banks whose maximum rate ranged between 25 per cent. and 60 per cent. per annum, 22 banks which charged between 60 per cent. per annum and 100 per cent. per annum, 18 banks whose maximum rate was from 100 per cent. to 200 per cent. per annum, and 8 banks which owned up to having charged maximum rates ranging between 200 per cent. and 2,000 per cent. Most of these disgraceful and unprecedented rates were for comparatively small loans....
These figures are not results of the rule, applied by many banks, not to pass a loan on their books for less than a dollar.... When we find loans made by national banks for $25, $50, $100, $200, $500, and $2,000 or more, at 40, 50, 100, or 1,000 per cent., it is merely a hideous gamble on how long the borrower can keep starvation from his door and live and work. Yet I am told on good authority that in one State, largely agricultural, reports from nearly 200 banks—lending chiefly or largely to farmers—show losses of only a fraction of 1 per cent. on farmers' loans, while the average interest rate in these particular banks is 12 per cent. to 15 per cent.—and the maximum rate 30 per cent. or 40 per cent., the banks paying large dividends.
We read much of the infernos of the slums of the great cities, of degradation and misery and squalor, of the grinding callousness of tenement landlords and sweatshop operators. Here in the country we find bankers, men in business that should be the most respectable, as it is the most responsible, of all secular avocations, literally crushing the faces of their neighbors, deliberately fastening their fangs in the very heart of poverty....
A well thought out, carefully constructed, conservative system of rural credits for the development of agriculture and the increase of our wealth and resources by offering encouragement and opportunity to the ambitious farmer will come presently. When it comes all of us will share the splendid results....
BANKERS' VIEW OF USURIOUS INTEREST RATES
[286]On February 25 the following statement was "given out" from the office of the Comptroller of the Currency:
The Comptroller of the Currency received to-day from the Farmers' Grain Dealers' Association of Iowa notification of the adoption at the convention of that association in Des Moines, Iowa, on the 17th instant, of the following resolution:
Be It Resolved, By the Farmers' Grain Dealers' Association of Iowa, representing 40,000 members, as follows:
That we are as much opposed to bank discrimination in interest rates as to railroad discrimination in freight rates.
We oppose private control of the public currency.