USVI Public Records

Document text

, V’\\ " . i\k /\ 7 ,',/' ;( L : E? o ot "‘f’ ' 7 ~: io= : A XRSDS £ oA - £ ;\—4{\/ & g VAR OTSTB Qe | Lo/ A @ | .1 l E \\\\ L ‘\;} \> SR ‘\»*%?"‘, R Y N &N R l‘? 'E‘M@;\? L ; s P = B e Gy WYV AVS S fg‘ I R G ISTH YEAR. . ~-7» % & o T - . .. » >0 ——— ..-_._;_._A-?._;:_.;____'_?‘_f.;:_:;: CHRISTIANSTEDR: V. k1! 8. A;, TUESDAY 1678 NOVEMBER 1920. "*On Nov. 10 a year ago this brokers’ committee announced that the renewal rate on ecall loans would be 12 per cent The following day Nov 11 they raised ° it to 14 per-cent. On Nov. 13 the rate was raised to 16 pe¢ cent:; Nov. 14 it droppad to 14 per cent; on Nov. 21 1t was made 8 per cent: althougn other loans were made as low as 6 per cent. On Dec. 181 t was 6 ver cent: Dee. 23 . it was raised to 10 per cent; 29th so 12 par cen ; on tha 30th ro 15 per cent; and remained at that rate until Jan. 5, when it was lowered to 10 par cent On Jan. 31 the renewal rate was 12 per cent; the nexi day Feb. 1 it was ad- vanced to 18 per cenr: dropped to i 4 per cent, on Feb. 2, advanced to 17 - per cent on Feb 5, and remained at 17 per cent until Feb '9. when 17 .was yo- duced to 14 percent. On Feb, 17 it was 6 per cent, raised again un Feb. 26 to 10 per cent and continued at 10 per cent until. March 4, when it was reduced to 9 per cent, " On April 16 the renewal rate was again -10 per gent. [n May the highest renewal rate was 9 par cent. In June the rate was @ per cent from the 25 to the 30th. o July operfed with 10 per cent renewal rate. It was lowered cfuring the month but returned agair to 9 per .cent on the 16th i7th and ?h. It 1. gratifying to note that since the ‘publication ofy the congrollers statement of July 31, re%gf‘ | ing excessive interest rates, the repewa rate does not appear io have béen ad- vanced agaiv as pigh as 10 per cent. "It seems clear from the figures sub- mitted that the ‘amcunt of demand or call loahs in the National and State banks and trust companies in New York City, lus the loans placed by them for their correspondent banks, which are affected by the rate fixed by this com- mittee of the Stock dEé‘ochange. probably exceeds $1,000,000,000.- As. I pointed out in a previous statement, on this ba- sis an advance in the renewal rate from 6 per c¢ent to 18 per cent for one day would add $360,000 to the net profits of the landing banks for ther ay. : In the first part of January of this year; for example, ‘he 15 per cent, 're- newal’ rate exacted for six successive days meant on this basis, a net interest profit of about $3,000,000 or ,more for, those six days. " ‘“The raising or lowering of the renew- al sate on the .Excharge is frequently acoompanied by upward or downward movements in stocks and securities; and those responsible for the fixing of the - =FHE ST. CROIX AVIS : 18 prigted a”dm&bw daiy (Sundays and ‘:“wexcepted) by G. Johansen at the Avs Office. s : ! TERMS- -50 cents monthly in advance. 2 cents per single copy. Hnatered as second-class matter May 26th 1917 at the Post Office at Christian- ated, St. Croax, V. [. of the'l/. S. A.. un der the Act of March 3. 1879 ' Contribution to this paper will be glad ly received when the same deals with mat-. ters of general imterest, and is accompu- nied with the author’s name, as a quar- antee of good faith. The editor cannot be responsible for the views ofhis correspon- dents nor does he necessarily endorse them. AMERICAN.NATIONALBANKS EX. PLOITING THE PFUBLIC.—CONTOL- LER uF CURRENCY EXPOSING . TRAFFIC 30 PBR CENT INTEREST PER ANNUMFOR LOANS » “Despite the statement -f the banks geperally that the interest rates on brok- | ers’ loans are raised or lowered, simul- | taneously with the fluctuation in the New York ca!l money market many in- | stances ;f apparent discrimination were | developed whicn show wide differences | in the rates charged on demand loans ecualiy well secured. For example, ! when renewai’ rate for a certain day within the last twelve months was post- ed on tae. Block Kxchange at 16 1. cent the report of oase particular New York bank showed that on that dat: this, ' bank was chargzing ou loans for itself and corresp;ndents 7 per cent on $4. 900,000; 8. 9, 14, and 15 p. ¢. on $1,428, . 000; 18 per cent, on $750,000; 20 per ceut, on $42,100,000, 25 per centon $3, 550,900, and 30 per_cen’ on 900,000. “The coterie oi brokers which fixes the ‘renewai’ rate which appears to have such binding forece upon the banks in New York City ip the case of ‘brokers’.,, loan, does m;%lt its actiyitis to loans hur thoge bealters aleg owesute orders for stocks w&f'-bonds on the floor of the Bxchange. Inquiry of the Stock Exchange us to the number of brokers who are usually coucerned in the fix- | ing of the money raie brought the re- | ply that there was, as a rule, 'four to | eight vr more,’ the Stock Exchange be- | ingusually represented by either the | President or one or more of its Governors | in the consultations where the rate is iixed. e ' No. 266. rate therefore have the opportunity, whether exercised or not. of profiting largelv bv operations an the stock mark- et, which is so often and directly eflectad by the call money situation I do not, of eourse, undertake to say that this informed ‘‘money committee’’ does take improver advantage of this fore-knowledge, but there are ecrities who severely censure the existing arrangements. Certainly all prudent and thinking business mén wili agree that there is danger in the concentra- tion of such Oppertunity and power in. the hands of a few persors. Tempta- tions to use this power for individual profit mus* arise, and human nature is not changed by high position in the financial world.--The New York Times. OR the information of persons invited F to the M rine Corps dance tobe held at the SKERVICE CLUB-at Christian- sted on November 17, 1920, the Marine Sorps truck will make an omnibus’ trip starting from the Custom House at Frederiksted at 7.00 p. m. taking the Centre Road, and will pick up any guests along that road whLo desire trans- portation. The truck = should reach King’s Hill about 7.30 and Christiansted about 8.30. Guests along the road will please flag the truck as it passes. A return trip will be made at about 12.00 midnight. - Gs° Nay DANCE COMMITTEE. PUBLIC meeting will be held in the A Christiansted Theatre TUESDAY EVENING Nov. 16, at8 O’CLOCK. " All persons interested. in Island’s welfare are invited to be present. CITIZENS ACTIVE COMMITTEE, est bARt - sRA, 1A For Sale. THE Property No. 12 B. & 13 Church Street and ! Hill Street, for particulars apply to R. PETERSEN. -