Evening star., 1901-08-02
DIS TRIO 7 BAN Ks
Proposition in Regard to Those of
Private Character.
A REGULAR REPORT OF CONDITION
Should Be Made to Treasury or
District Commissioners.
An OFFICIALS VIEWS

| A proposition affecting the management
of many District of Columbia banking in
stitutions has been submitted to the office
of the controller Of the currency which Is
attracting great deal Of attention among
officials of the Treasury Department.
This project contemplates the enforce
ment Of some law compelling all the private
banks. the loan and building associations
and the savings banks Of the city to fur
nish either the national government the
District Commissioners a monthly, semi
annual or yearly statement of their condi-
| tion. AS the law now stands all such in
| stitutions not obliged to report their
respective conditions from time to time, as
the national banks and trust companies OF
Washington are obliged to do, and officials
| of the controllers office believe that 1t
| would be wise measure of precaution to
force them to do SO.
Degree of Uncertainty.
1t is claimed by those In authority that
| the absence of detailed reports from the
banks In question affords a degree of un-
| certainty regarding the standing of private
subject to all the provisions of the Revised
continued may eventually result harmfully
to depositors and stockholders of such in
stitutions. These banks usually make pub
| lie from time to time statements of their
condition. but they are not compelled to do
so, and it is stated at the Treasury De-
partment that such statements are entirely
voluntary in character, and may or may
not be exact and reliable. Under the law
all savings and other banks organized un-
der act of Congress in the District shall bo
subject to the provisions of the Revised
Statutes, but there are great many banks
In the city not organized under act of Con-
gress, and which therefore are beyond the
Jurisdiction Of the federal law requiring
periodical reports of condition. The stat
ute regarding the banks formed under au-
thority OF Congress is as follows:
And all savings other banks now or
ganlzed or which shall hereafter be organ
lied in the District Of Columbia, under any
act of Congress, which shall have capital
stock paid up in whole or in part shall be
subject to all the provisions Of the Revised
Statutes and OF all acts of Congress appli-
cable to national banking associations, SO
far as the same may be applicable to such
savings or other banks" The provisions OF
the statute thus referred to require all such
banks to submit reports from time to time
to the controller Of the currency as to their
financial condition All the savings banks
of the District with one exception are ex-
empt from the provisions OF this act and
all the private banks and building and loan
associations likewise do not come within
the requirements of the act.
Not Obligatory Under the Law.
The consequence of this condition is that
reports of the state Of the various institu-
tions not embraced within the scope OF the
law are not obligatory in nature and are
submitted to the public and to depostors
and stockholders only at the pleasure OF
the bank officials If the management de-
sires to do SO 1t may submit any sort Of
statement 1t desires, there being official
examiner appointed by the government to
Investigate the condition Of affairs or any
other officer authorized to go over the books
and see what the state Of finances is. The
result Is that persons having money In
volved are not in position to secure the
same information available to depositors
and stockholders in the national banks.
which is Of an official nature.
The District Of Columbia is not alone
Alabama, South Carolina, Nevada and Ar
kansas are similarly situated. In most OF
the other states state bank examining
boards are maintained which do the re-
quired work, but in the District Of Column
bia and the states enumerated no protec-
ton whatever is afforded.
The controller Of the currency usually
sends out circular letter bearing upon
the subject and calling for information
from the management of private banks,
but answers to such letters are not COM
pulSory.
An OmciaPs View.
In speaking Of the subject an official OF
the controllers office said to Star reporter
this afternoon: 1T seems to me that somo
sort Of measure ought to be adopted af-
fording the people of the District the pro-
lection required in this respect. l note that
"A commissioner of insurance has been crc-
ated for the city, whose duties shall III
clude a general examination from time to
time of the affairs of the various insurance
companies here. That is a good idea, and
a similar one appertaining to the private
banking institutions of the city ought to
be adopted AS the situation now stands
there is no assurance to depositors and
stockholders that they can get information
Of the exact and trustworthy nature that
Is given them by the national banks and
trust companies of the District. / think
the interests Of depositors demand sucn re-
ports. The proposition has been submitted
to this office and is receiving considerable
attention. The consensus of opinion is
that some step ought to be taken to insure
the statements required"