New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-10-12

AS said in the beginning the direction in when
supervision is in cooperation between the direc-
The % tne banks and the supervising ad be
a. 9PT0yed both by change In system and better
the directors realize their responsibilities and do
eh9Ir duty. For some months past there has been
Isoners office to AK the responsibility Of bank
and on the directors OF the national oanh5
tba n0fIned OF what the bank examiners ma IN
ana needs correction. Ali letters of criticism from
t sne ONCE are addressed to the president Of the
or cashier. Until recently nothing was done to
enet eSg letters to the attention OF tne diTector
a bank was in critical condition. AS result OF
very bad condition Without any effort having
6een made to advise the board of directors Of the
tactS OF the case and it was a common complaint
Of things going on in the bank about which the
new system, every letter which contains any seri-
guesting the directors to join in letter saying
1ey nave received the letter from the Controller,
ana ADVISING the office what steps will be taken TO
correct the matters complained Of. During the
are very apparent 1t has resulted in many boards
OF directors making inquiries into the business Of
tons of which they would otherwise have never
their uV to- Know %ds ob n0t only e Pgh led D 6
Some sen complaint, and has been resented by tie
some measure reflection not only upon their
ra anS3gfement but upon their character as well
SaFe1ul consideration. however, Of the proper re-
latlops which should exist between the directors
gT regal ana moral responsibility to their share
Il2iders and creditors, should convince any bank
bank as he should, that this is a measure looking
"lIly 10 more careful and better administration
NO bank officer who is running his bank properly
SSnouid nave any fear of his directors, and they
jecting their business to the criticism of the Con-
troler and. above ALL If he has found violat-
Improvement in the administration of the Control
Understood 1t viii meet the approval of every bank
onlcer VINO wants TO run his bank as it should be,
sponsibiities which his oath and the law wisely
ana properly place upon him As long as am
Controller propose to assume, without evasion,
my responsibility and to see. far have the
banks and their officers accept theirs
Inc bank examiner and the Controllers office
for wch they are responsible. and it is no excuse
IN any way upon the directors of the bank On the
9tner hand; the directors also have independent
not shift to the examiners It is no answer to a
charge of neglect of these duties to critcise or
complain of the bank examiner The Bank act
provides that the affairs OF each association shall
that each director. when appointed or elected,
SnaH take an oath that he will. so far the duty
aevoIiye on him. diligently and honestly admins
Ter the affairs of such association and will not
Is fulfilling the obligations assumed in this oath
W WIEN n9%s the Officers to manage al its affairs
IA ms Dahk at all, as Is too often the case.
DUTIES OF DIRECTORS.
The duty of a bank director if he would fulfill
the obligation imposed by his oath and protect the
and 0f the the for whom ne
even greater moral obligations, requires that he
are being properly managed. Meetings of the d.
ectors should be held regularly and frequently and
De Wen attended by all the members of the board.
At these meetings the officers should be required
to make full, complete and intelligent reports IN
IIr ~ io5m ana detail as 10 be easily understood
py the directors All loans and important transac
especially all notes and securities should be sub
mltted Tor the personal inspection of the mem
TH V-b0 ar not Ctiy 1fFic
loans 10 officers and directors should be more close
the Of their total liabilities clearly Under
stood In addition to such exhibitions
qHent thorough examinations made by committees
officers of the bank
possible and required 70 show the exarnini5t com
nittee or auditor just how the matters in his
charge stand No man who is in position Of
animation. and one who has proper appreciation
trust and con7dan oe b b2 .H0IG %9 nave re2osea
opportunity to show that he has been faithful and
do their fun duty in the way here outlined bank
IaliTF E Woua aIm9 9 come to an end Banks
might fall but it would be rare, and tle result Of
agement. We would very seldom have such sudden
and sensational failures of banks looted from the
munities and even thought to be models Of honesty
The point I wish to emphasize is that the re-
sponsbility for bank management is by law placed
on bank board and taking the oath of office
diiigenf and i bones adi2isre p I me WIZ f
the association He IS under every moral and legal
pieteiy. it is Certainly not asking too much OF
men who accept such trusts that they simply do
This would seem to be a particularly opportune
rectors Of the banks Of the country as Well as all
other men who are in places Of financial trust and
Recent disclosures of the most dsgraceful be-
trayal of trusts BY men in the highest positions
gain at the expense Of those whom It was their
oS ia the y dh ng e %ofd
Not only those who usually are interested in such
matters. but all the people of the country ask
ing: eff these are not TO be trusted. who is7'
IL this much is true, how much more must there
not beT' 1t is only natural inquiry whether IN
the contest for wealth and power the American
financial conscience has become deadened and the
old ideals of honor and truth have given way to a
where they did. but 1t is great good fortune that
been discovered Unknown or only suspected,
such things the greatest danger. but their dis
them: The more complete the exposure the more
certain the reform. A director officer Of any
bank, no matter how small or obscure holds the
Same relation to his trust that these men held to
prebabIy M NOT man here Certainly no member Of
The American Bankers Association. who is not the
who thus depend on his honor and fidelity. We
are all responsible in some ne degree leg It Is not
those who have been caught in the act. Our duty
resting upon us The upholding Of the reputation
and character of the banking institutions of the
country is in our care and depends on each man
doing his full duty.
The session tomorrow wifi include addresses
and discussions on various phases of banking.
The bankers were received at the Corcoran Gal
lery of Art this evening.
Incidental to the convention was the meeting
yesterday of representatives of clearing houses
of the larger cities of the country. who discussed
the plan of doing away with the practice of ex-