The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1908-02-13
RIDGELY CALLS
COFFIN A LIAR
Comptroller of the Currency
Replies to Statement Made
by a Former Deputy.
TRIES TO ENFORCE THE LAW
DISQUALIFICATION BY BANK
ERS EXTREMELY RARE.

Vac hingtOn, Feb, 12-W. b. Rldgely,
the comptroller of the currency, today
made public his reply to the criticism
of his bureau, made by John Nj. Coffin,
formerly deputy comptroller of the cur
rency. as published in a New York news
paper las Sunday morning.
Mr. Coffin charged" said Mr., Ridgely,
that sections 500 and sos of the Revised
Statutes of the United States are daily
violated by every large national bank and
makes the statement that stock gambling
could be suppressed, at least 50 per cent
OF it Obliterated, by a strict enforcement
of the above-named sections
Intentionally False.
Mr. Ridgely reviews Mr.. Coffin's con-
nectiOn with the Beaver National bank
of New YORK as its first president, and
states that result OF violations of the
law the bank is now in voluntary liquida-
ton. Mr.. Ridgely goes on to say: Not
only the charges, but the statements made
by Mr.. Coffin in the article referred to
of the facts, and are Intentionally false
and untrue. Section 800 is the section of
the bank act which prohibits any national
bank from lOaning an amount equal to
more than One-tenth of the capital stock
of such association. actually paid and
unimpaired and one-tenth of its unim-
paired surplus fund, provided, however.
that the total of such liabilities shall in
no event exceed 80 per cent of the cap
ital stock of the association, to any per-
son, association, company, corporation or
firm.
Has Tried to Enforce the Law.
Whatever may have been the fact in
Iegar dtO the enforcement of this prOvi-
sion at the time when Mr.. Coffin was
deputy comptroller of the currency, and
in a large degree responsible for its en-
fOrcement or nOn-enfOrcement, since the
passage of the amendment to this act on
June z. 1906, a most vigorous and de-
termined effort has been made by me as
comptroller of the currency to enforce
this section of the bank act. II is true
that in former years il was very COM
mon practice for some New York and
other banks in the country to make loans
in excess of the 10 per cent limit But
owing to the steps taken by the comp
trollers office in the last few years to
enforce this section. such violations of
the law are now very infrequent."
The comptroller quoted from the re-
ports of National bank examiners in New
York. tending to show that violations OF
section 500. in regard to excessive loans.
haKe been practically eliminated, from
New York banking, and then says:
Decentralization Rare.
In regard to the violations of section
5ZOS, prohibiting the over-certiflcation OF
checks Mr.. Coffins statements are equal
ly false or based on wrong infOrma ton.
I am convinced from the examinations l
nave made and the explanations ana as
surances given me by many bankers OF
the highest character and standing that
illegal over-certificatiOn of checks are
extremely rare. When they are discoV-
cred, as in a recent case, the facts are
reported to the department of justice and
the offenders are induced and brought to
trial. The sections of the law Mr.. COT
fin complains are daily violated, are, as
matter of fact, strictly enforced the
same as all the rest of the law is en-
fOTged-OuietlV and as matter of duty
without any fuss or parade and regard
less of the letters of Mr.. Coffin or any
-ar sensation mOnger. The proposition
officers of leading banks of New
y ork City are so foolhardy as to daily
violate the law and render themselves
liable to Imprisonment as criminals. as
would be the case if the law were so
violated, is too absurd for serious belief. q"