Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-12-11
Probable Value of Reply to
the Tillman Resolution.
EXPENSES OF BANKS
REPORTS WILL NOT SHOW POLL
TIcAL CONTRIBUTIONS.
Slightest Departure From Irregulaity
Would Be Caught by the Examiner
and Controller

1t is practically a foregone conclusion
that Senator Tlllman's resolution adopted
by the Senate. calling upon the controller
OF the currency for all informatlc bear
ing upon political contributions by ma
t!onal banks will be unproductive. There
is hardly hare possibility that anything
sensational, or even deeply interesting, will
be contained In the reply of the controller.
who will begin work at once when the Of
ficial resolution reaches him. There VIII be
no occasion. either. for delay. and a prompt
response from the controller is assured
Senator Tillman's resolution betokens uu-
familiarity with the reports OF national
bank examiners. and the national banking
laws. He will find that ont when the re-
port upon his resolution gets to the SEN
ate.
Protection of Bank Profits
The very essence of the national banking
laws is that the profits of the banks must
be protected in behalf of the depositors
and others. The law and the rules of tho
controllers office for many years demand
that expenditures must be regular and tho
slightest departure from regularity or le-
gaity of expense accounts of the average
bank catches the watchful eye OF the ex-
aminer 1t would be a serious thing for
a national bank TO make a political con-
tribution ont OF its profits. IL discovered
the controller would be treadng upon dan
gerous ground if he did not at once require
the bank to replace the funds so used. This
next step would be to carry the case 70 the
courts and insist upon revoking the char
ter of the institution.
The strictness of the controllers Office
in this direction is shown by the fact that
in past years examiners in several in
stances discovered that bank directors and
officials had made subscriptions out OF the
funds of rhpir institutions IN aid nf ayviy
organized enterprises. holding that it was to
the best interests of the bank to help To-
cal enterprises that would build up their
communities. In every single instance
where this has been discovered, the bank
officials have been required 10 restore the
money.
No Political Contribution Recorded
There is not case on record within the
memory of officials OF the controllers Office
where a bank examiner has ever reported
national bank as having made political
contribution or even charitable one. II
would be impossible for the controllers
offfce to examine every report in the past
few years, as it would mean running over
thousands OF documents. but the response
to the resolution will doubt be that not
a single official of the controllers office
can recall an instance OF such contribu-
ton. Many of these officials have been in
the Office for forty years. or since the In
stitution of national banks. They are IA
miliar with the reports that come IN.
If there have been contributions by
banks to political parties they have been
covered up under other headings The
business of an examiner Is not to inquire
into the details of expenditures In national
banks unless the institution is on the verge
of collapse. His duty is to see that the
expenditures are kept within reasonable
bounds. In case large bank desired to
evade the provisions of law. a serious Of
Tense, the contribution would be disguised
under the heading of legal services"
something of that kind. II the item should
happen not to be an exorbitant one no in
quiry would be made to It, That there
may have been contributions of this sort Is
not doubted. but il is known that there Is
no record of them in the controllers office.
and 1t is the record that Will furnish tho
answer to Senator Tillman.
There has never been any question that
national bank officials, as individuals con-
tributed heavily to defeat Bryan In 1896
and again in 1900. They probably gave
many thousands of dollars TO that purpose,
believing their business was menaced In
the event Bryan was elected. II Senator
Tfllman's resolution could reach contribu-
lions of this kind there would be some
material for the newspapers,
but II provides for facts contained in the
reports of the examiners, and there are no
facts to be had of the kind he wants.