The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-06-09
THE EXAMINERS REpoRrs

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THE EXAMINERS REPORTS.
Since the failure of several banks the
public and the press have been more or
less severe in their criticism of the
bank examiner, who. they say, should
nave discovered the mismanagement of
funds by bank officers and have stop
ped it or stopped the banks doing bust
ness. There seemed to be pertinency
in the common question: What is the
bank examiner for, if it is not to see
that depoSitors are not putting their
money into bcttomless pits? The bank
examiner has made no public answer
to these just complaints, but lately
there has been current a rumor that
the examiner has performed his full
duty by making his reports to the gov
ernor, and that officer has seen fit to
plgeonhole them. If this is true, it
transfers whatever blame may attach
from the former to the latter officer.
The grand jury of Hennepin county,
in the course of it's inquiry into the
violations of the banking law, perhaps
with purpose to find out if the ex-
aminer had done his duty, requested
permission for its expert to examine
the reports and, on refusal, subpoenaed
the governor to bring the reports of the
examiner in his custody to that body
The governor refused to do it, claiming
the privilege of his office, and the ques-
ton of his exemption will be passed
| on by the supreme court. In this con-
| nection it is interesting to ascertain
what the examiners duties are, what
reports he is required to make, to whom
| and the nature Of the latter officers
duties relative to them. The statute
provides that the examiner inspect
once in each year, all banking institu-
lions. He is to examine into the valid
1ty of their securities and assets. For
this purpose he is given power to COM
pei the assistance of the officers and
employees, put them under oath, ex
anime the books, papers, bills, accounts
and securities and ascertain if there
nave been any violations Of the bank
ing laws by the officers For this he
receives a salary, paid by the treasury
OF $4,000 year and a contingent fund
OF $1,000, besides being allowed to re-
tain fees chargeable for other examins-
TONS
He is required to report to the gov
efnor forthwith the condition of the
oahk or banks examined, together
With his recommendations and sugges-
lions respecting the same, and the gov
ernor may cause the same to be pub-
llshed, or, in his discretion. take sllcb
action as the emergency may demand"
1t may be noted as pertinent that the
PUBLIC examiner is made ex-officio s,,-.
peflntendent of banks and given the
duties of that office formerly performed
by the state auditor. AS such he Is
empowered to call upon the attorney
| general to bring an action to dissolve
any banking corporation which has be-
come insolvent. 1t is evident from the
! duties thus imposed upon this officer
that the purpose Of the law is to make
MIN the guardian Of the interests of
depositors, who cannot have access to
the information needed to know if their
| deposits are safe or not. For this he
exists and Is paid.
1t IS also evident that it is the pur
pose Of the act that the governor should
take some action when the report of
the examiner reveals violations of tbe
law by bank officers or actions that
impair the banks solvency. The only
discretion left him is to "take such
other action" besides publishing the re-
port Of the examiner, as the "emer.
gency" may demand. There is no.
where anything that warrants him in
considering the reports as private. or
leaves to him any discretion for in
action when they show failing condi-
ton. He is evidently expected and re-
quired to act. The most effective ac-
ton, of course, would be the publica-
ton of the report. There is no oues-
ton that, had the governor taken that
course, thousands of depositors in the
CIdHlDGU.
where they are not ruined, by continu-
ing to make deposits on the faith Of the
proper performance of their duties by
these two officers, in banks that were
insolvent. The liability of the governor
/ to allow grand juries to inspect these
| reports will be determined by the court
and on it's action we refrain from com
| ment while the case is pending. That
he and, possibly, his predecessors have
been unfaithful to their trust and vio-
lative Of the spirit of the law, if not Of
it's letter, is apparent from this review
of the statutes relating to the duties
Of these two officers
| That column of alleged smart criticism of
| extracts from the country papers in the
G o g has been falling off rapidly. Today
none Of us country boys were joshed.-Still-
water Gazette.
Once in a while the boss editor thinks his
musty matter is all must" and he side
/