Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1906-10-17

BANK EXAMINATIONS ARE LAX
Not Enough NJ on 70 % the Work, and
Pay l. Not sutfieisnt-HIame Should
as Shared BY Lawmskers-T axes
Pres. 70 Tssk for Featuring Bank
FaiIurss Drives Men to Suicide.

T.
et. Louis Oct. 17.-The regular ses-
sion Of the thirty second annual con-
ventiOn Of the American Bankers As
sociatdon Vas called to order this
morning In the Olympic theater by
President John l. Hamilton of HOPES
ton. III. David r. Francis, Governor
Folk. the mayor and J. c. vanblarcom,
president of the National Bank OF
Commercs, delivered welcoming ad-
dresses. President Hamilton replied.
and delivered his annual address.
After speaking Of the growth in
membership. the interest. influence and
usefulness Of the association, Presi-
dent Hamilton recommended the or
ganisatlon Of clearing house section.
and the recognition Of the National In
stitute Of Bank Clerks.
President Hamilton. said In his an
nual address:
Tho axamiaation Of banks has been
brought to tie attention OF the pub
lie by recent failures Of both state and
national banking institutions; and no
small amount Of blame has been at
taohed to the management Of these de-.
partments. both state and national as
it has been sa0wn that they have not
been a. thorough as they should have
been In their examinations.
sThe blamel does not rest wholly
with these departments, but should be
shared by the lawmakers, both state
and national The attention of con-
gress and of ,hA state Legislatures has
been called, not only by the comptroi-
ler of the currency, and the manage
anent OF state banking departments.
but BY the bankers Individually and
thru the different state associations, as
well ~ by thu. American Bankers AS
ISOLATION, to the fact atithere are not
enough examiners to properly do the
work.
e Examiner Wages Too Small.
tsThe wages that an examiner can
make are not in keeping with the abil-
ity required, nor with the wages paid
mon In like capacities In banking insti-
tutions. The result Is that it is hard
10 k0ku 8Ik0 W AOSP AOA AAy AOAS "a VI
time, men Of ability as examiners.
'.Ths present method of paying ex-
aminers. SO rnuch for each bank ex-
amtned. Is al wrong, as. In order for
an examiner to make an ordinary ltv-
in, more banks must be assigned to
him than he can possibly examine
thoeoughly.
Bank examiners should be paid a
fixed salary. commemorate with the
responsibility OF their position. and the
number Of examiners increased so as
to make the examinations more thor
ough. The banks would be only too
glad to have them made so, il posi-
BILE, but It ID! not possible under the
presents laws.
Congress Blamed for Conditions.
"The blame rests with our national
congress, not with the comptroller OF the
currency, nor with the bankers, for
time and again has the attention OF
congress been called to this very con-
dition.
There Is n, good reason for the mig
6ardly manner in which our national
bank examiners are paid. The national
banks Of thls country would q thou
sand times r.lther pay an unnecessary
additional expense Tor examination.
than to stand the oduim that is placed
upon them thru no fault of their own.
II the examinations must be paid for
by q special tax on the national BANKS,
then make 1t, and make it high enough
to employ more examiners and pay
them salaries In keeping with the SER
vices required.
No Special Tax Needed.
sThere is, however. no need for
special tax to secure more thorough
examination. The national banks OF
this country are paying annually ST.
$4,000 in tax on circulation. in ex-
cess Of the amount Of expenses Of the
comptroller's department Why not
use part Of this fund and secure bet
ter service? The fact is, that from
the head Of the comptroller's Office
down. there is not a man whose wages
are commensurate with the RESPONSE
bility Of the position he holds; and
yet being political positions, they dare
not complain. When 1t comes to
point that, thru the lack Of proper fa-
Critics the banking interests of this
country are made to suffer, it is high
1lIHlo In0I We OSN1AuQ pNdC CAe DldTnS
be placed where 1t properly belongs
with congress-.
Scores Prsss For sensationaIism.
''The press Of the country, in its
eagerness for sensational news, makes
too much Of every bank failure, and
aims by Its articles to make them as
sensational az possible. When repor.
Is made of failure the public is led
to believe that every dollar of every
deposftor is lost, and the entire saw
lngs Of thousands are swept away.
This has led many to commit suicide
and othsr acts Of desperation, at the
same time creating an unrest in the
minds of the public, so that without
reason. upon the slightest rumor. runs
have been started upon other institu-
tfons. While we deplore the actions,
NE have no apology for bank wreckers.
NJ . great injustice u done our pcr-