New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-02-01
THE BANKING INQUIRY.

JHG D1hhIAo 1-'VC1''1'
The Assembly has acted with commendaDle
promptness in passing the resolution for an IN
yestigation of state banking conditions. Some
members of the Senate show a disposition
TO block the inquiry, but if the Republican ma
jority in that body is wise it will at the earliest
possible date follow the example of the Assem-
bly. 1t needs no special insight into the state of
the puhic mind 10 know that whether specially
needed or not this investigation must be held.
Some gentlemen may be under the deusion that
the demand is entirely the product of newspaper
agitation and that 1t will soon cease. We are
not sure that the demand is not, indeed, IN a
considerable measure Fictitious. But If anybody
wants TO make it entirely genuine and popular
LET him at this stage of the proceedings convince
the people that somebody is engaged in des-
perate effort TO prevent light being thrown upon
the operations of a government department NO
good Interpretation will be put on failure to
make an inquiry favored by the most progress
sive reform elements in the legislature. Super
intendent Kilburn himself has asked for the in
vestigation. The Governor, whose views con-
corning the proper limits of legislative inquiry
were much msrepresented, has made it clear
that he had no objection to any investigation
for proper legislative purposes and no desire to
cover up anything which might be revealed as
an incident thereto.
In so far as this investigation is undertaken in
the spirit of prosecuting Superintendent Kflburn
it is technically repugnant to the law. In the
case of the People ex rel. Mcdonald VS.. Keller
go " Y, 1851 Judge Rapallo, speaking for
unanimous court, said:
An investigation instituted for the mere sake
of investigation. or for political purposes. not
connected with intended legislation with any
of the other matters upon which the House could
act, but merely intended TO subject a party or
body investigated to public animadversiOn. or to
vindicste him from unjust aspersiOns. where the
legislature had no power TO put him or IL on trial
for the supposed offences and no legislation was
contemplated. but the proceedings must neces-
sarily end with the investigation. would not in
our judgment, be legislative proceeding, or
give to either house jurisdiction TO compel the
attendance Of witnesses or punish them for re-
fusing TO attend.
1t is perfectly well known that the cry for
investigation began attack upon Superin-
tendent Kiburn and without any thought Of
doing anything but try him on charges which
the Governor after hearing had dismissed. 1t
may be said, therefore, that in one aspect the
investigation is improper, and even Mr.. Kill
burns desire for vindication cannot change the
situation There is however, fair field for in
vestlgation of the whole subject. The Superin-
tendent's office is created by the legislature and
may be reorganized or. abolished by it. More
over, the banking law is not universally consid-
efeu SATISFACTORY Inc trust companies, for eX-
ample, do practically banking business with
out all the safeguards Of banks The whole
system might properly be inquired into and
new laws to fit present financial methods rec
commended.
VindicatiOn or accusation of Mr.. Kilburn
would be merely incidental to any proper in
vestigatiOn. and do not believe that he or any
friend of his has any concern on that score. His
reputation is high. The matters concerning
which he is criticised involved the exercise of
his discretion in nursing banks along for the
purpose of avoiding widespread loss. In one
case the loss was avoided in the other his ex-
pectations were disappointed. These cases have
already been investigated, and rehashing them
is not likely to trouble him. 1t is possible that
some banks and trust companies may be using
their influence TO stlfe inquiry because they
have made campaign contributions or carried
unsecured loans for politicians or been guilty Of
other abuses. Such methods, however would
be proper subject for investigation and subse-
quent legislation, and there Is no reason why
the Republican legislature should assume the
burden of protecting men in acts which do not
square with their professions The Banking
Department exists to see to the solvency OF
banks, not to manage them. and if bankers
| themselves forget their standards. as Mr.. J.
| Edward Simmons has eanphatically declared
| before bankers convention that they do, il is
no fault of the Banking Department. The fear
| Of investigation, we imagine. dwels in other
quarters. Wherever it dwels, other Senators
must see that the question of banking conditions.
| once before the public, must be satisfactorily
answered.