The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1905-10-12

/ whioh calls for criticism and needs cor
4 rcctiot, A II letters Of criticism from the
| Office are addressed to tho president OF
the bank, and are generally answered py
| the president or cashier. n
Inform the Directors.
1tnlli recently nothing was done to
cult these letters to tho attention Oh the
directors, except when there was very
serlous criticism and a bank wns In n
criticnl condition. AZ a rcs,tlt Of the
| for,,cr system, banks were often found
IN n very bad condition, without any ef-
fnrt having been made to advise the
board Of directors OF the facts Of the
case, and 1t was h common complaint
| from directors that they had mover been
| notinctl of things going on In tho bank
| about which the officers had been written
repeatedly. Under tho new system, every
letter which contains any serious critl-
cissn at all closes With paragraph re-
uucstng the directors to join In u letter
saying tlloy have received tho letter
from the comptroller, and advising the
Office or what steps will be taken to
correct tho matters complained Of
No bank officer who is running his BANK
property should have any fear OF his di-
rectors, and they have right to Know
In what respects he is subjectng their
| hS>'-'A
troler, and, above all, II he has been
found violating tho law.
Tho bank examiner and the comptrol-
ler's office have certain duties which they
must perform and for which they arc
responsible, and It Ia no excuse for HON
to put blame for their failure to do so
In any way upon the directors Of the
bank. On tho other hand, the directors
also have independent duties which they
.l..t, vnt Il
to tho examiners. 1t Is no answer to u
charge Of neglect Of these duties to crn-
else or complain Of the bank examiner
Duties Of Directors.
rho duty Of bank director, If he would
fulfill the obligation imposed by his oath
and protect the interests of the share
holders for whom he Is n trustee, and
the, creditors, to whom he is under even
greater moral obligations, requires that
he should know positively that tho r.
fairs of the bank arc being properly man
aged. Meetings Of tho directors should
DO held regularly and frequently, and
be we'll attended by all the members Of
the board At these meetings the officers
should be required to make full, complete
and Intelligent reports In such form and
detail as to be clearly understood by the
directors. All loans and important trans
actions should be reported and passed
upon, and especially all notes and securi-
ties should be submitted for the personal
inspection of the members Of the board
who are not active officers
Every clerk and every officer Of the
bank should be examined and checked
up as thoroughly as possible, and required
to show the examining committee or audi
tor just how the matters in hts charge
stand. No man who Is in e. position Of
fph IN pcL
examination, and one who has u proper
appreciation Of the relation he bears TO
those who have reposed trust and conf
dence in him Will welcome such al OPP
portunlty to show that he has been faith
full and efficient.
IF all the boards Of bank directors
would do their. full duty In tho way
here outlined, bank failures would al
most come to an end Banks would, OF
course mako losses. and occasionally one
might fail, but It would be rare, and
the result of very unusually bad judg-
ment and incapable management. We
would very seldom have such sudden and
sensational failures of banks looted from
the inside by men who have stood high
III their communities. and even thought
to be models Of honesty and trust
" orthiness.
Betrayal Of Trust.
Recent disclosures OF the most dis
graceful betrayal Of trusts by men In
the highest positions and the use Of these
very positions for private gain at the
ex pense OF those whom 1t was their sa-
cred duty to protect have put the Amer
lean fiancier on trial before the coun-
try and the world. Not only those who
usually arc Interested In such matters.
but all tho people of the country, are
asking: III these men are not to be
trusted, who is?'' If this much Is true.
how much more must there not boz"
II is only a natural inquiry whether In
the contest for wealth and power the
American financial conscience has be-
come deadened and the old ideals OF
honor and truth have given way to q
newer code.
It Is shame, n disgrace. national
misfortune, that such things could have
happened when and where they did, but
4, Is a great good fortune that through
a quarrel over the spoils. the knavery
has been discovered. Unknown or only
suspected, such things are the greatest
danger, but their discovery and exposure
makes 1t possible to reform them.