Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1891-02-28

bezzlers is not decorated with stripes down
al Riverside. The incident acted like an
eye-opener taken in the early morning, and
under its influence the committee asked the
Judge variety of questions in rapid sue
ceSsion with this result:
Prepared for Examiners Visits.
Senator Robiuson-Well, Judge, doesn't the
examiner visit hanks Just when he chooses?
..Yes. sir. but bankers generally knew when
he is coming. and il is usually pretty easy to
be prepared for him if such thing is necessary.
The fact that this man covered up his trauo
for u years demonstrates this"
~ eli. IS it common thing for teller OF
cne hank 20 run into another bank and borrow
$4,000 or $4,000 whenever he wants, leaving
merely 4 mcm 3randUln sbp?'
YES: dort know that amounts so large as
thai are obgaIned from the hank, but it could
easily be go5 from severa! banks Some such a
system is necessary, especially in PittsDurE
where large pay rolls ol'en make big demands
We'll, do YOU favor the State supervision OF
State banks?'
R'No DON'T know that do: L don't think il
IS necessary.
Representative Morrison-Did understand
you to say, Judge, that banks here know when
the bank examiner IS coming around:
Generally they do l don't know just how
or why. 1t seems to be sort of in the air
WHY, in Philadelphia they told us that
they had to be ready at any minute, because
thev never knew when the examiner was
coming"
The Judge thought the recent furry was
caused by the English panic, and the fail
ures were the result of lack of proper Sc
curity on loans and investments. He
claimed that in many cases private banks
were more reliable than national or State
banks, as the owners were individuallyre-
Sponsinle, while incorporation limited the
reSponSibiiitv He held that State
funds could be deposited in
private banks with safety.
4 Series of Replies in Writing.
John T jackson, of the Fidelity Title and
Trust Company, had conned the questions
beforehand, and sGbmitted his answers in
writing. He said the failures were produced,
ia his opinion, by putting large amounts in
Inyoayertible assets The Striugency was
Que 10 lack OF confidence aRd the boarding
Of uaGs He is opposed to State super
S,>icR Of private banks He thought it was
unnecessary to examine trust companies
Us their accounts are now audited
BY the Orphans Courts, but he
favored supervision of State banks.
Ee would have examiners appointed by the
Governor. lie held that State banks
shcuLa have 4 reserve, but it did not
apply with equal force 10 trust CON-
panIes, whose business differs widely
Hom a banks. He recommended re-
serve ranging from 10 to % per cent.
lie couldn': see how 81 per month for Sc
Inonths could earn 500. II he knew how 1t
Vas done, Mr.. jackson remarked, he would
60 into business at once.
John NJ Lyon, of w. r. Thompson &
Co., :E uEEt one OF the principal causes Of
failure in banks was the excessive rates OF
interes, allowed.
Other Causes for Some Failures.
William Roseburg, cashier Of the Bank
Of Pit,Sburg, said one of the main causes of
failure was placing money in outside
investments. He thought law pro-
hiDiti@g the deposit of State funds
II uniucorporated banks would be good, and
he favored putting these institutions under
State supervision as we'll as forbidding them
10 use the name bank. He advocated a
separate banking department, and would
have the Governor appoint examiners.
Much in the national banking law could be
Incorp rated in the State law. He was op-
posed to State supervision of private banks.
W. ". Patrick stated that the furry was
caused mainly by the heavy stocks of goods
purchased 10 head off the Mckinley bill
aaG the failure of the crops IN the West.
His answers to the other questions were
similar to his competitors replies.