New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-11-06
MR. LACEY AND THE MAVERICK BANK.
SECRETARY FOSTER REPLIES TO CRITICISMS ON
THE CONTROLLER

SECRETARY FOSTER REPLIES TO CRITICISMS ON
THE CONTROLLER.
Washington, Nov. SpeciaD.-There seems to be
dissatisfaction on account OF the appointment OF
Mr.. Beal receiver II the Maverick Bank of Boston,
and among other in circulation hero to-day was
to the effect that Controller Lacey's official head
in danger. Mr.. Lacey left Washington this morn
ing for Boston, and Secretary Foster besieged
this afternoon with inquiries in regard to the statements
which afoat in regard to the Controller. To a
Tribune correspondent secretary Foster said:
81 regard Controller Lacey faithful and con-
scientious officer who thoroughly understands his duties
Several months ago he to with the report Of
the National bank examiner who had made an ex-
animation of the Maverick Bank. The report showed
that about 81 100000 of the banks funds loaned
paper Endorsed by President Potter. and also that
all of this loan except say, ST. OO0-I do not remem
Der the exact amount, but 1t comparatively In
significant protected by ample security aside
from Mr. Potter's Endorsement. The other ST. 900, or
whatever the amount Immediately protected
by other security Of twice the amount of the oan The
Controller expressed uneasness in regard to the
condition OF the bank, however. and l Suggested an
other examination To this he replied that mme-
date examination would be likely to handicap the
bank because every other bank in Boston would at once
know of it., and the result might be injurious possibly
disastrous and the second examination was tenn
porarily postponed Soon atcrward the bank examiner
at Boston fell 1.-The has since icd-and before another
examination could be had the doors of the bank were
closed.n
"what about the delay in the appointment OF a
receiver which has been the subject of criticism
"The facts are these. am informed by the Con-
troller On Saturday committee OF the Boston Clear
ing House came here and him, and he said that
If they would say that the bank was insolvent he
would Immediately place it in the hands OF receiver
They replied that they not prepared 10 say that
the Maverick Bank insolvent, and they returned
TO Boston. A day Or two later they were prepared
and did say that the bank nsolvent in dispatch
TO the Controller who forthwith placed the bank in the
hands Of Mr. Peal rs receiver"
THAT appointment appears to have provoked some
unfavorable criticism" remarked the correspondent
eyes, replied the Secretary. at seems to grow
out OF the fact that Mr. Bea had heretofore criticised
President Potter's methods and management OF the
affairs of the bank risky and likely to end In
trouble the institution apd the fear Is expressed
by persons that he will not do as well as some
other person might do with the assets IL does not
seem to me that there any danger OF his neglectng
to anything and everything In his power to protect
the interests OF the bank and its depositors He Is
regarded as a man OF the highest honor and integrity
and his character and reputation in Boston are second
| to none. In consequence OF his appointment as re
ceiver the associated banks OF Boston have assumed
the immediate payment so per cent of the deposits
| In the Maverick Bank. They might have done the
same thing If some other man had been appointed as
receiver but the fact that they have done is the
strongest kind OF evidence to my mind that the ap
pontment of Mr. Beal good one"
The foregoing L. the substance of what Secretary
Foster Gid I'm regard to the Maverick Bank and Con-
troler Laceys official action in regard to 1t. 1t is
fair to infer that his views In harmony with those
| OF the President with whom it Is believed he con-
versed on the subject to-day, and it Is also fair and
reasonable to infer that nothing has yet come TO the
knowledge Of either OF them which has impaired his
confidence in the Controller Of the Currency. Strictly
speaking that officer is not subordinate Of the Sec
retary of the Treasury Under the law he is appointed
by the President for fixed term Of five years and
cannot be removed from Office except by the President
and for
| In the course Of the conversation to-day Secretary
Foster remarked that while the National banking sys-
TEN may not be perfect the percentage of failures and
losses account of dishonesty carelessness OF Ma
onal bank officers is extremely small compared with
the failures and losses under any other system He
added:
1T is not strange that careless National bank
president or cashier and then manages to escape
detection for some time. Everybody knows that it is
virtually impossible for bank directors to know from
day TO day the actual condition of their bank the man
| who runs the machine is the only one who know.
Moreover the examiner may be deceived for time by
false entries forged bills receivable ETC., auOuen ne
usually discovers the cr0OkedDess In the end The
fact that few officers OF National banks as well as
of private banks and other moneyed Institutions turn
ont TO be d sones crminay careless and negligent
and are detected until the banks with the manage
ment of whose affairs they nousted come to gI1ef.
The trouble Is that some dishonest careless
the National banking system as a system is not 10
blame for that but II II can be amended SO rs TO throw
stronger and better safeguards around the money OF
depositors as well of stockholders hope 1t will be
dOneo