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 Irregularity
Would Be Caught by the Examiner
and Controller.


1t Is practically a foregone conclusion
fhat Senator Tinmans resolution. adopted
by the Senate, calling upon the controller.
Z or the currency for all information bear
ing upon political contributions by ma
tionai banks will be unproductive There
is hardly bare 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
ficin resolution reaches him There will be
no occasion either, for delay. and a prompt
response from the controller is assured
Senator Tillman's resolution betokens un-
familiarity with the reports of national
bank examiners, and the national banking
laws. He viii find that cut when the re-
port upon his resolution gets to the Sem
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
ard others. The law and the rules of the
controllers Office for many years demand
that expenditures must be regular and tho
slightest departure from regularity or ie-
gaiity of expense accounts of the average
bank catches the watchfui eye of the ex-
amlner. 1t would be serious thing for
a national bank TO make a political con-
tribution out 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. The
next step would be 10 carry the case to the
courts and insist upon revoking the char
ter of the institution.
The strictness of the controllers Office
In this direction IL 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 their institutions In aid OF newly
organized enterprises. holding that 1t was 20
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 to restore the
money.
No Political Contribution Recorded
There Is not case on record within the
memory of officials OF the controllers Office
where bank examiner has ever reported
a national bank as having made a political
contribution or even a charitable one. IL
would be impossible for the controllers
ONCE to examine every. report In the past
few years, as 1t would mean running over
thousands OF documents, but the response
to the resolution will no doubt be that not
a single official of the controllers office
can recall an instance OF such a 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.
II 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 tho
expenditures are kept within reasonable
bounds. In case a large bank desired TO
evade the provisions of law, serious Of
Tense, the contribution would be disguised
under the heading OF legal services" or
something of that kind. II the item should
happen not to be an exorbitant one no in
quiry would be made as to 1t. 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 the
answer to Senator Tiliman.
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
Tilman's resolution could reach contribu-
lions Of this kind there would be some
sensational material for the newspapers,
but 1t provides for facts contained In the
reports of the examiners and there are no
facts to be had Of the kind he wants.