The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1899-05-10
BANK EXAMINATION

To be Iilor0uRn-OHc VI wy ScJeSS'''o
Sought by the Present Comptroller
or.lc Currency.
Washington correspondence OF the New
York Journal OF Commerce: 1t is one
., the aims OF Comptroller Dawes to
,r5tect the Interests OF deposltors In
Rational banks by strengthening the
character and completeness OF the ex-
nmInatlons made twice yearS,under
b,s authority. These examinations have
GRADUALLY Improved in character. Under
Abe concerted action OF the banks
Comptroller Dawes has sought to weed
ou, Of the service a few OF the least cf-
aclen, examiners and has been exact
,ur In making new appointments. He
Inns refused in several cases to accept
the candidates first suggested by seno-
tors and representatives and has In
sisted that the men appointed shall not
only have banking experience and
knowledge OF discounts. but should
possess breadth OF character and in
tetfirencc which commended themselves
10 his personal favor The appointment
q, Forrest Rayner. the new examiner at
New York. is typical OF the class OF ap-
po!ntments which he has sought to
mike. Mr.. Rayncr was for many years
the discount man OF the Fourth Nation
nj bank and was generally recognized In
New York as one OF the best equipped
in his line. One of the examiners who
makes the most comprehensive reports
which are being adoptedaas the stand
ard for others, Is Mr.. W., c. Oakley, OF
Chicago. There are many other first
class examiners in the service, and the
controller Is endeavorlng.t to raise the
standard and to secure reports which
are not merely copies of the accounts
Of the banks, but which reveal their real
condition.
One Of the principal requirements
which is now being enforced is detail
ed statement Of all large loans. the
character and credit of the party to
whom they are made. and the security
which may De available to cover them.
Reports OF, this character ARE required
not onlF where the loans approach the
legal limit In relation to aibnnk's capt.
tai, but In all cases where they amount
TO any considerable PROPORTION of the
business ~ the bank II. the case OF the
large city banks. with millions OF loans
and deposits. the detailed reports usu-
ally set forth the character Of all loans
for $4,000 or more. but smaller loans
are examined where they are In any
way suspicious. and the minimum limit
for sNecia! reports declines with the
size OF the bank. In the case OF the
country banks, with capitals OF $4,000
10 100000, full reports are required for
leans 10 officers OF the hanks are also
scanned critically by Nthe examiner,
even where they involve only trifiing
amounts. Each of these large loans
reported upon sets forth not only the
general standing OF the borrower. bue
the state OF his resources and the Sc
cnritics. il. any. which he has given the
bank as the guarantee of the loan.
Comptroller Dawes requires more and
more o. this information with each
succeeding report and does not propose
10 accept reports which involve merely
the work OF an accountant, in footing
Up the nominal value of commercial!
PAPER and other assets. He has recently
adopted system which As designed to
diminish the risks of the American
banking system in permitting the same
Individual TO strain his credit to the ut
most az several institutions. without
disclosing 10 either the fact that he Is q
borrower from the others
4 check upon this system of multiple
liabilities consists in reports to the
comptroller OF the lines of credit carried
by larSe borrowers at each bank. The
loaEs by single firm from several
HAMS are CONSOLIDATED and studied, "a nd
al ia!!mation frequently goes from the
c''Iee OF the comptroller to the banks
that they might well diminish their line
Of credit to a particular firm or corpor-
atDs. 4 plan was recently organized
among the Baltimore banks for getting
tbs Information on their account A
Discreet and Intelligent student of cred
lis was employed by all the banks 10
examine the BOOKS and assets OF each
compare the results and give quiet
tips" in regard to the reduction Of GER
tain line' of credit without revealing
he affairs % one bank to the officers o.
another. Comptroller Dawes hopes tc
0Av!ate the necessity OF private ar
raHgcmeIts of this sort by the thor
ouEnness Of the official examinations
nni the comparison OF the results In
Washington. Several OF the leading cit.
les recently had but one examination q
year, while the rest OF the country had
Two. The system o, double examinn-
tons has been extended to all. and Phil
odeI7hia. Baltimore and Washington
have been put In n single xaminati
district with several examiners, which
VIII permit the shifting OF The examI-
heFs from one city to another with this
result Of checking the work of. each
9'her. Another important reform which
Is being carried out is the examination
oi national and state institutions which
are In the same building or are closely
allied at the same time. The comptrOl.
!er mas been In correspondence with
STATE officials upon this subject and he
N nearly every case secured cordial az.
S0rahfe OF cooperation. The recent
!"ohery Of bank In northampton
A.aSs.' was made possible by the fac,
Hat the same parties operated n saw
!hgs bank In the building and wera able
% Shitt cash and securities back and
i''ih TO meet the exigencies OF national
snu state examinations. Similar frauds
naEe occurred before, but they will be
IlHicuit when the examinations are
MAGE simultaneously. In one or two
eases the comptroller has received VOL
uN'iry requests from the state officials
" aHopt ;his system OF simultaneous
examinations.