Omaha daily bee., 1902-10-05
BANK WRECKINC AND SALVINC
Duties and P~srplt1.tiss Of the Man Who
Manages Insolvent Banks.
SOLEMN NOTES ON FINANCIAL FUNERAL
Operations of the Doctor and the I'm
dertaker who Camp ON the Trail
of NRpoIeOns Of IBanc
Sources of Disaster.


Hon. Charles G. Dawes, former comp
troller Of the currency. writes to the Phil
adelphia Saturday Evening Post. as fol-
lows:
National banks in the United States are
managed, as a rule, with marked ability,
conservatism and integrity, and insolvent
national banks are the rare exception.
Again it should be remembered that only
the most picturesque incidents in connec-
ton with this peculiar phase Of bank man
gcmen have sufficient novelty to make
them Entertaining to readers outside the
ranks Of those who study this problem
from a professional viewpoint. With these
points in mind q glimpse at this page OF
banking history may be had without un-
consciously gaining the false impression
that bank wrecking'' is a common prac-
tice, and that banking is anything less
than the most cautious Y conducted bust
nese OF the country. And in attempting TO
point out the weak spots in general bank
ing methods, with suggestions of safe
guards which would tend to diminish the
number Of national banks forced into in
solvency, the point that l have just em-
phasized should not be lost sight Of or
forced into the background
In attempting to realize the nature and
extent OF the task which confronts a
comptroller in managing the affairs Of all
the national banks OF the country which
are in process Of liquidation owing to in
solvency, 1t is necessary to recall the rela-
ton Of the bank to the public which II
serves.
1t Is. so 10 speak. the financial switch
board of the entire business community.
All the live commercial wires center at
the bank. There is scarcely a monetary
transaction of any moment in any com
munity which does not In some manner
record itself at the bank-and generally the
attitude Of the bank toward any enterprise
of Importance is vital.
This Implies that as the manager OF the
insolvent national banks OF the country the
comptroller OF the currency fnds himself
charged with the direct control OF a great
variety Of enterprises which are among the
assets Of the llquidating bank. Thus, at the
same time, the comptroller becomes at once
the responsible manager Of scores OF farms,
stores, factories and other examples of the
more common forms Of investment. In ad-
dition TO this be is never without a choice
list Of novelties in his collection Of bank
assets. Dur comptroller, for example, ao-
quired, in his capacity as custodian Of bank
dbHelS, = 5ulhll ntIu VI buhalbNos anu IL
discharge Of his duties was obliged thor
oughIy to post himself on the demand for
on the hoof. However, he man
aged this peculiar enterprise well and made
the most Of his shaggy herd.
A Wholesale Business Manager.
There is seldom a time when the comp
troller has not under his management sew
eral mines Of various kinds; properties
which must be handled with good judgment
in order to avoid great sacrifice. FIRE.
quently this official has an opportunity to
demonstrate his ability as a railroad man
ager, for in one or another part of the
some insolvent ban is almost sure
to count a street railroad among it's assets.
Occasionally a larger intramural road of
Importance, with all its compli-
Gated trafic and legal problems. gets into
this class, and the task Of making 1t pay
OUT without heavy shrinkage is a serious
undertaking OF no small magnitude. OF this
class the Chicago-Calumet Electric road. in
which over SO, 500, 900 OF the money OF de-
positors in the defunct National Bank Of
Illinois is invested. is the most important
example.
To all practical purposes the comptroller
Of the currency finds himself In the position
Of the private capitalist who has scattered
his investments in a wide variety Of enter
prises. His lieutenants are the receivers
who are appointed directly to administer
the affairs Of each insolvent bank. and to
these men are left the details Of making
the most OF the assets in their charge.
But the comptroller must keep a vigilant
eye upon all those diverse properties and
know that his policy regarding each is
being faithfully carried out.
Naturally many insolvent banks have one
asset OF major Importance. upon the man
agement Of which largely depends the sue
cess Of the liquidation. In one Instance
this Is q street railway. in another a mine.
a ranch. a mandatory, a plantation. a
theater. a newspaper or an electric and
gas plant. In the history Of the comptroller
ship hundreds Of mines and several brew
cries have been administered.
Inevitably many curious and interesting
situations arise In the management OF so
diverse a collection Of properties. Among
the main assets OF the Chestnut Street Ma
tionai bank which became insolvent were