The sun. (Jacksonville, Fla.) 1905-1908, 1906-09-22

" a 1t was first uttered, and especially
D APPLICABLE to the subject matter Of
this article II your heart is where
your treasure Is, every person who owns, or ex-
poets to own dollar that is entrusted to bank
for safe keeping should be interested In the mat
ter Of banks and the safeguards that are thrown
around them In the interest Of patrons Of such in
sttutiOns. The National Banks are under the
control of the Federal Government, State Banks
of the State Events In the world of National
Banks recently, the bank failure in Chicago. the
bank failure In Kentucky, the failure In Philadel-
phia, which involved such enormous sums OF
money have led us to make inquiry as to what Is
being done among State Banks to prevent losses
to the citizens Of Florida by reason of similar mis-
fortunes. e.i
representative of THE SUM- with the view of
obtaining information on this subject, sought Mr..
w C. Groom, Chief Clerk In the Office Of the
Comptroller, whose duty 1t is to examine State
and Savings banks, and obtained from him much
enlightenment which Is given here for the benefit
of SUN readers. ,h" 50
"Mr. Groom" asked the reporter, under what
law are State banks examined"
Under Section 2191 Of the Revised Statutes of
Florida" was the reply, which provides for the
examination of all banks Incorporated under the
laws OF the state of Florida. There are now
about seventy banks in the State and am contin-
ually engaged in the examination Of them under
the direction OF the Comptroller who purposes to
have each bank examined at least once each year.
number have been examined several times dur
ing that period. The condition OF the banks Is
reported to the Comptroller from time to time, as
may direct, and from these reports the question
OF frequency Of examination Is determined AT
times 1t has been necessary for the Comptroller
to have two examiners In order to more speedily
ascertain the condition Of some OF the banks"
"How long mas this rule Of regular examination
OF State banks been In force?"
"Well, prior to 1904 there were, comparatively
speaking, only few State banks and am advised
that they were examined only as the returns to the
Comptroller indicated the necessity for examina.
ton. The Comptroller has now fixed determi-
nation to continue the regular and systematic ex-
animation Of all the State banks and 1t is expect
ed that the next Legislature will uphold and
assist him in this work by the adoption OF meas
ures that are under consideration. l am glad to
be able to have an opportunity to say that the
State banks generally are managed In the most
conservative manner and are In prosperous con
ditiOn. This Is due to their adherence to the
banking business pure and simple. without branch
Ing out into speculation, as was the case OF the
banking institution In Philadelphia that lost such
huge sums belonging to the people whose conf
dence It had The views OF the Comptroller along
THIS line are most pronounced and departures from
safe banking methods by any bank are not count
enanced"
Then you think, Mr.. Groom, that there is no
danger of any such occurrence among the banks Of
this State as that Philadelphia failure|
II do not believe that any serious trouble could
occur. OF course there might be failure, but
think the danger is very remote nor would 1t be
very disastrous, as the banks are required to re-
port and are examined too often. Certainly there
could not be, even In proportion, such an occur
renee as that in Philadelphia because that was
due to the lack of examination for four years,
which left the officers of the bank or, in that case
officer, free to manipulate things 80 as to make 1t
possible for them, or him, to make an almost COM
plete wreck OF the bank"
The State banks appear to have the confidence
OF the people, do they not?"
There are now, as said about seventy State
banks and according to the last statements we
have there was OVER FOURTEEN MILLION
DOLLARS ON DEPOSIT IN THEM. This shows
not only the prosperity OF the people but the sta
bility Of our banking institutions Confidence IL