The Plymouth tribune. (Plymouth, Ind.) 1901-1911, 1908-06-11
WILL ENFORCE
CURRENCY LAW
COMPTROLLER COMPILING
LIST OF RESOURCES OF
ALL NATIONAL BANKS
OF COUNTRY
DANGEROUS
PRACTICES

Tie 1Tedury DepdI lllleIl lOI Tie
prompt carrying into effect of the
various provisions of the new cur
rency law. A list of all national
bank, arranged by States, show
ing the capital and surplus OF
each is being prepared by the
Controller of the Currency for use
by the Secretary's office in con-
nection with any applications that
may be received from banks for
the formation of national curren-
cy associations, provided for. by
the new law.
Deputy Controller of the Cur
rency T. P. Kane, in answer to
an inquiry as to what was being
done toward preparing recon-
mendations to the national bank
ing laws for submission to the
national monetary commission
stated that this matter would be
taken up and carefully considered
at the proper time, but as yet
nothing had been done. Such
amendments will be recommen l.
ed as experience in the practical
administration of the laws has
shown to be necessary.
The national bank act has
worked very satisfactorily ant
successfully, he stated and nc
radical change in the law is deem
ed necessary. There are a number
OF provisions, however, which
need amendment, SO as to make
their terms more explicit or dehn-
Lite, correct inconsistencies anC
antiquities which have crept in
to the statute through amend
ments from time to time and tc
supply additional provisions nee.
essary~ to meet new conditions
and changes in banking methods
and practices which have devel
oped since the present bank act
was adopted forty-four years ago
There are a number of admin
dlstrative regulations of the Con
troller's Office in the conduct o.
their business which, it is said
should have the force of law, ir
order that the Controller ma,
have the power to correct unsat
isfactory conditions and danger
Gus practices found to exist il
banks which, while not a viola
ton OF the banking laws, invari
ably lead to disaster.
Although Deputy Controllel
Kane thought it unwise at pres
ent to go into details, it is wei
known that for long time the
Controllers office has importance
Congress to make certain change.
in the law which would result II
greater security, especially tc
creditors of banks. 1t has beer
represented that it is just as es
sential to the safety of a bank tha
he discount of commercial paper
and bills of exchange be kept will
in prescribed limits as it is to re
strict the amount of loan thai
may be made to any one person
or interest. More bank failures
1t is said, have resulted from thu
excessive or imprudent concen-
tration of funds in the hands of !
single interest or of allied inter.
ests than from all other causes
combined. Treasury officials say
it matters not, so far as the secur-
lily of such funds is concerned
whether the liabilities consist oil
direct loans made in excess of the
limit in violation of the statutory
restriction or the discount oil
commercial paper beyond the linn
its of prudence and safety, bur
Pwitlnn statutory authority.
T Realizing the dangers of such
Ia situation, endeavor has been
made by official supervision or ad,
ministrative regulation to supply
Ia protection to the deposition
which the law does not afford
him, by insisting that the aggre-
gate liabilities of any person, OF
OF any company, corporation or
firm, or allied interest, for direct
loans and discounted commercial
paper shall be kept within the
limits OF prudence and safety, but
as there is no authority of law
TO support such regulation in its
application to the latter, when dis
garded, appeal can be made on
~ to the conservative judgment
of the directors OF the bank as
to the dangers attending such a
policy.
Unfortunately for the welfare
OF the bank, such admonitlons, in
capable of enforcement, it is stat
ed, are too frequently unheeded
and. instead of liabilities of this
nature being reduced, in some in.
stances they are gradually in
creased particularly SO if the off
ers or directors of the bank are
identified with or interested in the
borrowing concern.