, 1881-12-03

uEuSTElt8 ABSENCE.
, M1r;wAuKEE, .VIs. DEG. IA cablegram
received tolRy, states that ho cannot leave
] Hamburg betare tomorrow, and dies not ex- |
peet tu arrive III washington before Dec. l5.
Ills as,sence giyes tho RepMbltcansa working
majority III tile House Of Representatives..
KNOX'B REPORT.
ARGUMENT THAT HANK ExAstrSEns ALE
NOT OF MUCH GOOD ANY WAY. |
sptetal Dlspateh 10 Ths Chteaoo Trtbuns. |
WAsHlSuroN, D. c., Dec. 2-The Control |
Ter OF tho Currency has completed Tint por-
tlon OF his report which relates 10 tho
"tuties Of Directors and Examiners" aud
the proportion Of checks, paper money, ard
coin used by banks III this country In the
transaction OF business. The portion re1at-
Ing to Directors and Examiners. oil account
Of the failure Of the Mechanics Bank of
Newark, N, j., and OF the Pacl1lc Bank OF
Boston. Is made unusually full. The fol-
lowlngls.t synopsis Of tho more important
statements rs 10 Bank Directors Mud EXAM
liners: The duties Of the Buard Of Directors
aro plainly defined, and however innocent
they may be Of any intention Of wrong, they
are responsible for the anfety of the funds
committed 70 thoir care, II 1t can be shown
TINT any " them Ind notice OF illegal trans
HEtlUuSs " - IL hoI4UuS IacS4oA NuCtAoA
they ara not legally bound to make good
tho loss which may occur. II this
Is NOT tho just land proper coil"
struct1on Of tho present law. then It becomesn n
question for the consideration OF Congress
wletheradultlonnl legislation upon tlIls sub
ject is not required. The Natlonal-Bankact Is
full Of restrictions. These restrictions aro
Intended to protcct these institutions by ini-
noatup t,nnr ft1snt the renhra1 r1,Ias which
experience has shown may DO properly done
by the Government without It's becoming tho
guardian OF tl'e bank, or In any wNy re-
sponsible for tho management OF tho funds.
It's .-....... ..-... --...-..-.-...'
THE DUTY OF THE EXAslSEM ~
to ascertain "hetnoF tae Objects ol uio oanN
anu It's Dlrector8 are conaplylne VAIN tuese
requirements OIL INC law a1ia w!eIuer they
are III any way vlo'atlne any OF its p1ovls-
IONS 70 tha Gnu tlat' III saci case' &neS h'hy
oe enforced ny aathof'ty' anu ~ Is plope9
qaest'on W!leIller lucy are 1'oI !ess !lNoie toE
losses which may occur from 1lcRsect VI a.1S,
even Witllout 1otlce. LIS ssockhoIaets etcet
tae plrectorss VINO "io "su"'ls uletl aos o"'s
OF hleh eha1acter anu wei! hho"n III tno co1ll'
7nunify whore tlo oanK IS 1ocatea' put ase
eehe.alay ALSO s1oeSnolaels u, 'au oank. nas- ~
ing, tllete1ote, eac4 pe1soHal 4teAesS ~; III 40
PROSPERITY aila goou nahnKenen'', ahe W
nosllofs conilue III lao 1nnk oeeause Laey W
llesa the Difec!ors WIZ laalimRe ~ Mtalis
honestly anu alieehuy Ml" "n' e'tpIoy l'on-
eat aid ia'thinl servants lor 'nat purpose'
Inc Examiner cah HaSe oat
LIMITED hSoWLEpeE
OF tho haoits aliu c''a!acseF OF those en-
ployea III the nah!s' anu II II not posslole LUZ
a1l Examiner III n day or TWO, 70 nhraVel eVll
work Which may nave continued 1or months:
ahl oolalh D coffece palahcesaeets a 1ull
atid coltlplote examination OF LUG panK leceS'
States l'os on!y counting tho cas'i. proving
Tic h'sls recosVaoio aa'' NY atoek iease',
comparing the Individual accounts WITH the
general ledger, md ascerta!nlng IT tho bust"
ness OF tue bank Is conducted IN accoruanca
with law, but also the thorough examination
OF all accounts, tho verifying oil accounts
current and the aseer'a'nlhR NY to!e9rapil
or letter the coErectIess ot such verlfieatiol',
tile calling In OF every depositor's book, alld
correspondence with every 1anls or banker
doing business with tle bauk. Inc II
epcctloh oy an EXAMINER ol slaal1 oahk ID
us ually completed In q cay. OF large banKs,
through the ald Of I'LL assistant. III Two OF
three days. but thorough analy2lnE ailo
scrutiny ut everything
SHOULD 1sEQu1RE ONE or TWO WEEKS.
and 1t f:aud wore suspected 1t might con
ttnuo for months without my satisfactory
Results EXAMINATIONS sllollld nc peflodlcal
" nude BY co1npeteiit committee seleclot
from tbs board. They hnYa the whole re
sources OF tho bank at their command, and Il
they hpva my occasion to suspect tlshon
esty or fraud 1t Is their business TO inyestl
cute thoroughly, anu they should employ
experts to assist henst n so doing. Th'