New-York tribune., 1905-01-08
LOOMS NAY BE WITNESS.
City Bank Could Not Lose by Mun-
roe Loans, Says Eice President.

Published reports yesterday that an investigation
would be made by the Controller of the Currency
into The part played by the National City Bank in
the Munroe &. Munroe affair were not substan-
Ieted from Washington. c. : Whitson. one of the
Nice-presidents of The bank would not say whether
not the loan Of S6O.cO0 made TO Munroe q Mum
roe each day for the eight days preceding the
firms suspension had been secured by collateral.
There is no question" he declared of :he bank s
rot getting its money. The city Bank has lost
nothing. and cannot lose anything"
In answer TO another question. Mr Whitson said:
THE City Bank never overcertihes, and did not
IN this case"
A G. LOOMS the vice-president Of the institu-
tion who a member Of the underwriting syn
dicate of the Montreal and Boston Copper Mining
Company. which syndicate the creditors Of Munroe
q Munroe are trying TO prove TO have been the un-
disclosed principal of the firm and, therefore liable
for the latter's debts at his desk in the bank
yesterday. but declined make any statement for
publication. II Is understood that Mr. Loomis win
be a witness this week the Munroe & Munroe
bankruptcy proceedings In progress before United
States Commissioner Alexander.
An officer of a downtown bank said yesterday
that, as result of the publications bearing on
the MUnrce & Munroe case. the public had acquired
a very hazy idea regarding 'overcertifcation" the
impression being left IN the public mind that the
National city Bank and the Wall Street banks gen
orally were extending accommodation right and
left. without security. 10 almost any one who ap-
piled for it, He continued:
Under the national Dank act II iS untaNIGl u
certify q check unless the amount STANDS TO the
credit OF the customer the books Of the bank
A bank officer. OF course. mas the right TO dis
notes loan single name paper TO any
extent which he thinks IN his judgment is safe.
The custom ia the National City Bank and in other
customers desiring H. Perhaps these customers
want the accommodation Tor Only an hour or
less time. until loan can be switched from one
bank 20 another. some similar transaction car
Tied through. The necessity for quick accommoda-
ton usually arises through requirements IN
handling Stock Exchange business, the custom in
handling such business being TO require certineu
checks against all deliveries. A customer who
wants accommodation comes TO the bank and
makes arrangements for a temporary loan and
cludes his balance in the bank. Then il is up to
the officer tO grant the accommodation or not. In
is il ''OVercertlnCatiOn.' It is
commOdation extended on a loan. on acceptance of
passbook and placed TO his credit the books OF
the bank. IL is merely an extension of credit for
temporary use.
tion Of the law in the transactions OF the National
City Bank Of New-York with the firm Of Munroe
& Munroe, the Controller of the Currency would
have been informed by the national bank ex-
aminers. As such report has been received here
IL is assumed that the action of the bank does
not warrant federal Interference.
Lncer the law, any bank loan 10
% its capital on any security that may be
ceptahlc 10 The officials Of the institution There
is no provision requiring that loan up to 10 per
cent Of the capital must be protected by safe
kind are discovered they Will be reported immedi-
atelY by the hank examiners 10 the Controller of
the Currency, who Will then take such action as
may be deemed necessary.