Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-03-21
HEARTY COOPERATION
Proposition to Have Government Su-
pervisio1 Discussed Yester-
d Afternoon.

1kepi cSeAtddVSS OF au the iHCoi Poi dtcu
banks in the ftstrict not under supervi-
sion of the nfoller of the currency con-
ferred with Cone5 missioner mcfarland at his
request yesterday afternoon in regard to
the Commissioners proposition that such
banks should be brought under govern
mental supervision of some kind, either
by the controller of the currency or by
District superintendent of banking. All
present agreed that such banks ought to
be under such supervision for their own
sake as we'll as for the sake of the public,
and all the bankers promised hearty CO.
operation in bringing about such result.
Among those present at the conference
were ]. s. TAFT, manager International
Banking Corporation; B. F. SAUL president
Home Savings Bank; P. A. Drury, presl-
chants and Mechanics Bank; c. H. Dav-
ldge, treasurer and cashier Washington
Savings Bank; John B. Sleman, jr., secre-
tary Union Savings Bank, and George u.
Boteler, treasurer Potomac Savings Bank.
The bankers commended the suggestion
for supervision of the private banks In the
District and said they believed it would
be of great benefit to the community. They
were unanimous in the opinion that the
desired supervision ought to be by the
controller of the currency rather than by
District superintendent of banking.
They gave as reasons, first, that the con-
required to make the supervision by ex-
animation and report most effective; sec
ond, that 1t would cost the banks less than
might be the case If it were under the Dis
trict; third, that 1t would cost the District
nothing They stated that in their judg
ment, it would be difficult, if not impos-
sible to get high-class man of the neces-
sary character, ability and experience for
superintendent of banking for the salary
that would be commensurate with the COM
paratvely small amount of work he would
have to do in examining the few banks that
would be under his supervision.
Room for Jealousy.
If he were a local man, or even If he
were not there might be local jealousies
and misunderstanding over his acts, and
even charges of favoritism, which would
not arise 1t was thuoght, in the case of ma
tional bank examiners, different men being
used by the controller at different times.
Besides, they felt that there would be more
prestige in the supervision of the controller
OF the currency than in that of a local
official
Some Of those present, upon being asked
by Commissioner Mcfarland whether
Incorporated banking concerns and building
and loan associat lions should be brought
under governmental supervision, stated that
they thought this should be done, while one
or two were doubtful on this point
Commissioner Mcfarland stated that as
a general principle he thought every con-
Germ of that sort which held fiduciary re-
lation to the general public ought to be
under governmental supervision. 1t was
admitted that it might be difficult to bring
unincorporated banksand building and loan
associations into relation with the system
of the controller Of 1.-The currency. In the
states, according tefthe state laws. which
Commissioner Macfarland had gathered, the
banking departments exercise whatever SUI
pervision is provided sfor building and loan
associations. AS yet, Commissioner Macfar-
land has secured no state laws for the eX-
animation of unincorporated banks, and
none of those present at the conference
could cite any such state laws, but ma jor-
ity thought that there ought to be such
law in the District of Columbia.
To Ask Controllers Views.
Commissioner zMacarland stated that he
will see the controller Of the currency
shortly and get his, views, on the whole
question, and that If 1t Is thought to be
practicable and desirable to have the super
vision of the Incorporated banks and Of any
of the other concerns brought under the
controller he would ask that officials as
sistance in drafting bill to be presented
to the Commissioners for submission to
Congress, which he would publish to
get the opinions of all concerned before ac
ton. This course would be taken with any
bill that might be prepared.
Commissioner mcfarland is inclined to
favor putting the supervision desired under
the controller of the currency, but reserves
his opinion until he can talk with the con-
troller about it.