The sun., 1897-06-13
STATE BANK SUPERYISION,

Hew and Important Feature introduced BY
superintendent Kilburn.
ALBANY. juno 1.-the Disciplinary Book"
is q new feature OF State bank supervision In
troduced by Superintendent Frederick ID. Kill
burn Of tho State Banking Department shortly
after he assumed Office. year ago last January,
and has greatly aided in protecting the inter
ests of depositors In State banks of discount and
in saving number Of banks from the necessity
Of closing their doors.
Since tho present Superintendent of Banks as
sumod Office in January, 1896. moro thorough
system OF making the annual examination of
banks prove useful and remedial has been In
augurated. Following the three previous years
OF depreciation In values and business depres-
Bion tho banks had been slow to realize the NO
cessity for q reduction of expenses and divt-
dends, and had been reluctant to decrease the
amount of surplus fund by recognising and
charging OF losses such as bad loans and other
dead wood. In some bank would re-
port a surplus of 100000. when the ex:
surplus to b only third or or a AoiSi Saif
OF that amount. In one special case bank re-
plus was but 5000. The oificers OF such banks
hsve been requested by the superintendent TO
eliminate 9 doubtful assets unless they could be
real estate and bank furniture, &c. Usually the
suggestions Of the superintendent have been
hcers OF banks have considered his letter mere
~ formal and porfunctory. his suggestions have
taken the form of command.
Careful records are kept in tho Disciplinary
BOOK or tho condl ltion OF each bank, showing
| the surplus ascertained by tho examiner as well
once being the Items rejected by the examiner
as available assets. In this book 10 also in
cluded record of all recommendations made
by Superintendent Kilburn following the ex.
animation OF bank and the action OF the
banks officers on such recommendations Only
banks under the discipline OF the department
| ent by consulting the book, which is examined
daily by him or his deputy, Col. James 8. Thurs
ton. can ascertain the exact condition at all
| Times OF every bank In the State which requires
the specially watchful care OF the department.
| AT the succeeding examination OF bank
under discipline the examiner OF the department
visits the bank with pretty clear knowledge OF
| its condition, and each examination 10 practi-
| cally continuation of the former ono In many
cases the first years discipline or admoniton OF
| the state Banking Superintendent has been
sumcient, and the affairs OF the bank are found
to DC more satisfactory. In other instances a
necessary, and in some rare instances more
heroic remedies are applied.
! Ihls new departure in bank supervision has
proved timely and beneficial to several banks
| the directors OF which did not realize the true
| condition OF their institution. In many in.
| stances expenses have been materially reduced.
| which has resulted In AN important improve.
| ment in the reliability Of the pu ubished quarter.
| ly reports of the banks enabling the dcpositors
| and corresponding banks TO obtain absolutely
correct information regarding the condition OF
| bank with which they do business.