New-York tribune., 1896-12-28
.Sl.5s. 1s3 6~2
TIE BANKING LAW.


This Is an increase Of ssiH7sS over the resources
OF the same classes OF institutions at correspond
ing dates I'm 1896
Supcrlntcndent Kburn will make some mpor-
tant recommends tions for changes In the existing
Banking law. In this connection he Will say: Dis
claiming disposition TO antagonze the state civil
Service Commission and indeed. with express
avowal of sympathy with the system in general
nevertheless cannot refrain from urging that the
initiative of selection IN cases of bank examiners
could more wisely be given TO the head OF the
Banking Department than restricted 10 the com
rcttive Cvil Service list. \ competitive exampa-
ton may accurately determine Il candidates gen
cra intelligence ard his familiarity with bookkeep-
ing banking methods and the banking laws but
except through requiring formal certificates OF
character. which any man Is always able TO secure
for such purpose. II does not cover or even touch
the question of trustworthiness. which In this posi-
ton IL almportant. 1t seems TO me that Il would
be Il napablc Improvement upon the present prac-
ticc If the Superintendent. being held responsible
for results were authorized TO make his own sclec
ton OF examiners In the hrst instance, with the
prcvso that before any appointment can take
effect the appointee shall! be examined by the Cvi
Service Commission; competing however. against
standard TO be fixed by the Commission. instead OF
against other candidates.
THE recommendation already suggested In the
directors OF State bank be required by statute
the cash and examine all paper held by the bank
At least as often once In six months. Once in
better matter OF practice. though perhaps the
freau, ncy first suggested would be ali that is desr
able prescribe by statute. In most of coun-
try banks the expense would be nothing at all and
i'm city banks II need not he burdensome while the
resulting benefits would more than compensate for
all trouble or cost
'It would seem that the dignity Of the States an
thority which should be supreme over the corport-
lions created by it, and also the interests OF stock
holders and of creditors OF insolvent banks assoca-
tlons or moneyed institutions In general would he
best conserved by making impossible the recur-
renee compca lions such have developed i'm the
case Of failed Murray Iiill Bank. Section is ~
the Banking law should he amended in a manner 10
shut out those under whosc management q bank be-
comes SO involved TO nccessitae the closing of
Il by the Superintendent OF Banks from exercising
any further controlling influence I'm iis affairs /
believe that that Is the intent OF the statute as II
stands hut II should be made plain beyond the chance
OF ms,lrders an ling When the State acts the power
OF private individuals 10 Intervene and more espe-
c,aily OF the very individuals whose misfortune or
misma ma cement rendered State action necessary
should be prohibited. that they can have stand
ing whatever In court In proceeding for receiver
ship In any movement to forestall the action Of
the Attorney-Ge as presc rbed by the statute.
"Considcra ions Of economy, avoidance OF conten-
ton and facility In meeting the various conditions
that may arise suggest as the best system yet de-
vlsed for such exlg"nciss the provisions s.ompre-
herded in the National Banking law on this point
and the superintendent ~ Banks should have pow
In this dir ectlcn ecua To those Possessed nv the
Controller Of the Currency. That Is to say after taxi
ing possession of the property and business Of any
aafnoration under Section II Of the banking Law the