, 1874-01-26

dangerous tondonoieB Of q bank, Ia concerned, iB
complete failuro It Ia Of no bo1aotlt wntoyar.
Aftor bnnk las failod 1t ID 8r1la comfort to tho
public to know Tint, somo woo1sa boforo, tho
Bunk Examiner had reported to Washington
examinations, moreover, aro Of two kinda. l.
| Thoao mado by thoroughly competent aud Mt
tho sa1no tin1o conscientious aud incorruptlblo
Examiner; 2. Those by m incompetent, or cor
rupt, or rltablo Examiner. As tho appointments
Of thoso Examiners aro 1nattor Of party patrotl-
ngc' their first duty Ia to tho party tint gave
tllom tho place. their next to ,nako themselves
hs acceptable and popular to tho banks ~
possible. 4 conscientious Examtnor, in n
very short ttu1o, becomes d nuisance to
MI banka In condition requiring vgilancs
and trmnoss on tho part Of tho Examiner. His
interference becomes 80 troublesome TINT an in-
mediato effort is made to have him removed aud
sorno porson moro acceptable put In his place.
II tho Examiner bo Of tho second c1ass. .-incom-
potent, or pliablc, or corrupt,-thon while:he can
make tho oflco c1tromoly profitable to limsolf,
tho "examination hc performs is Of oourse
|
pose that tho examinations by State officers will
DO any moro thorough or valuable than those OF
United statoa officers. Tho appointments, Of
courso, will bo political, and State machinery and
responsibility is gonoraly loss ollclcnt than Fcd-
cral.
Wo have In this State uumber of commercial
banks, and savings banks, and other institutions
authorized to do banking business, and Justice
demands TINT some sort Of publicity bo matlo OF
thotr transactions. Thoso institutions arc multi
plying In all parts Of tho State; savings banks
arc becoming moro humorous than public con-
venicnce or necessity domanda. Atpronont they
arc substantially irresponsible to tho public
Frand and imposition aro onslty praotiocd. What
is wantod Ia TINT kind Of publicity Of tho actual
condition Of tho affaira Of tleuo inntitutions
which no solvent md woll-,nanagod bank will
shrink from, but which would render II impos-
aibo for bogla ooncorna to 1.-Two undcr What
tue Legislature should do Ii to execute tho ninth
section, eleventh article Of tho Constitution,
which roada:
Evory banking hssocintion now. or which may here
nfter be, organized ,or tho awa Ut tia Btato salt
mnkc and publish full md accurate quarterly stao-
mont Of ia affairs (which shall bn certified to Under
oath by enc or orp Of its ocora) may 10 provided
BY law.
Tho grcat difficulty which o1ista in the vo1un-
tary statomonts nov made is tint thoy froquont-
1y omit information upon tho very points which
most affect tho standing Of tho bank. Tho
Loglslaturo Bhonll require cach OF these banks
to mako quarterly sworn statement showing
tho following facts:
i. Capital atocle paid In.
2. Surplus, If my.
3. Amount duo lospositors.
1. Amount of 1oaus secured by real .eatatc.
8. amount Of call loans.
6. Amount Of limo notcs discounted,
T. Ths amount and kiud Of coaterals held ~ socuri
ty for loans,
g. Amount OF loane to officers and Directors OF tho
Bank.
0. Amount Of cash on hand.
10. Amount invested in public securities, giving the
names aud amounts Of each.
Thero may DO other points that viii suggest
themselves to tho Legislature, but those wo
have given will Hutco to expose tho chief abuses
practiced under tho form OF savings bauks. No
bank doing legitimate businoas will hesitate to
mako this statement; while tho making OF it
will Of necessity coao up all the nero confidence
shops, which take money On depoBit to ennblo
the officers Of tho machines to use tho monoy in
their private business This searching statomont
would probably close numerous savings banks
In the State, and tho fact that it would have such
IN effcct ia the very reason wig it should be ro-
quirod.
The only real guarantee dopositors have in
either State or National Banks is tic personal
character Of tho men by whom they aro man. |
aged. If their personal character is not suf1i-
cient to inBuro III honest administration Of the |
bualness Of tho bank then thoro is little to pro-
tect tho public against loss. But Of al protac-
tions, TINT furnished by tho average Dauk Ex-
aminer IL tic least valuable.