New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1883-01-19
MIR. HEPBURN AND THE BANKS.
CONDITION OF THE DEPARTMENT.


MEN WHO ARE ANXIOUS TO SUCCEED THE PRESENT
SUPERINTENDENT.
Some of the candidates for State Offices in the Gift
of Governor Cleveland apparently believe in taking
time by the foreIock as petition in circulation
In banking houses yesterday asking the Governor to
appoint man ofthe name Of Mccarthy to the Office
of Bank Superintendent though Mr.. Hepburn's term
will not expire for three months yet. Willis s..
PANE receiver of the Bond Street Savings Bank,
has been a candidate for this Office for some time,
and E. X. Apgar has been reported as seeking the
same honor There are several candidates in the
field for Health Officer although the present incum-
bent, DR.. Smith, has over year yet to serve.
short time previous TO Governor Ceveland's
inauguration it was reported that he intended to
recognize the independent Republicans of the class
of Sherman 3. Rogers and Others who had con-
tributed to his election by their vigorous support
and that he would appoint some one OF their num-
Der to an important State Office. Another report
was to the effect that he had been asked By some
Of these gentlemen as well as by prominent bank
ers to reappoint Bank Superintendent Hepburn. a
TRIBUNE reporter made some inquiries OF MIR. Hep
burn who was at the Windsor Hotel, in regard to
this and other matters.
81 have no knowledge. he said, "of any such
effort to have me reappointcd, nor do believe that
Governor Cleveland will nominate others than
Democrats to Offices as to which he has a freedom
of choice"
"When will your report on the condition OF tho
savings banks be ready7" was asked
mot before February ~, as the savings banks
have until February l to make their reports TO me-
notice that my recent report on the condition OF
the State banks has received newspaper crIti-
cism because dld not something about the con-
dition of the savings banks The writer could not
have been aware that the Bank Superintendent is
required to make separate report on that subject"
"Do you anticipate any bank failures here such
as took place some years agoT
"No such failures cannot well be anticipated
There have been only two bank failures in this
State since became superintendent in April, 1879
One was that of a bank in WATERFOWL, and the
other the somewhat recent failure In Rochester
In the case of the Watertown bank suspected that
it was not on sound basis when | came into Of
flee and made an examin alton and found lis capt.
tai impaired by loans to its directors. | required
those loans TO be made good at once, which was
DONE Some months a terward the bank failed. but
Just before that report was made 10 me under
oath by its cashier and president that there were no
outstanding unsecured loans to It's directors III
turned out afterward that there We're snch loans To
more than the amount of tue banks capital"
Has there been any prosecution of those officers
for perjury 7"
mo believe not vet but it ought to be some
body's business to undertake such n prosecution.
In the case of the failure of the Rochester bank
which was caused by the cashier specializing with
the funds there can be foresight on the part of
any State supervising agency that can prevent sncn
an occurrence. The law is very defective In regard
10 the examination of banks. The superintendent
is directed to make an examination only when ne
has cause to suspect that thsre il something wrong
or unsound in the condition OF the bank II begin
the examination of bank suspicion arises IN the
public mind that thera is something wrong and
necessarily do not want to make an exan,hailoh
unless / think it absolutely necessary. The law
should be amended, and require all banks to be ex-
amined at least once year" 80,
Would that increase the cos' of the Department
Not to any great extent. The cost OF the Depart
ment IL borne BY The banks themselves and not by
the State. There is no objection 10 such change
in the law except from rural banks, and generally
they exercise good deal of influence over the mem
beers of the legislature from their districts These
private bankers ought to be prohibited from using
q name that would imply corporation. FOR III
stance, man will start private bank IN country
town and call it The Citizens Bank which would
imply that il was Incorporated and subject TO state
control. thus creating false impression AMI mis-
leading people at a distance. Generally speaking,
the banks III prosperous condition during
INV term of office the savings banks have gained
600 600 resources"