Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1908-02-13
RIDCELET ANSWERS COFFIN
Comptroller Of Currency Replies to
Charges Against His Office.
FEW BANKS VIOLATE THE LAW
Statutes Against Large Loans and
Decentralization of Checks
Are New Carefully
Enforced.

WASHINGTON. Feb. 12.-w. r. RidEeley.
comptroller Of the currency, today made
public his reply to the criticism of his
bureau made by John M. Coffin. formerly
deputy cOmptyoller Of the currency. as pub
lished in q New York newspaper last sun
day morning.
Mr. Coffin charged" says Mr. Ridgeicy.
that sections 52OO and 62OS 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, or at least 50 per cent
Of II obliterated, by a strict enforcement
of the above named sections"
MIR. Ridgeley reviews Mr.. Coffin's con-
nection with the Beaver National bank Of
New York as its first president, and states
that as a result Of violations Of the law
the bank is now in voluntary liquidation.
Loan Limit Enforced.
Mr.. Ridgeley goes on to say.
Not only the charges, but the statements
made by MI. Coffin in the article referred
10, are really made without any knowl-
edge OF the facts and are Intentionally
false and untrue. Section $500 is the section
OF The bank act which prohibits any ma
uonal bank from loaning an amount equal
10 more than One-tenth Of the capital stock
Of such association, actually paid and un-
impaired and One-tenth of its unimpaired
surplus fund, provided, however, that the
total OF such liabilities shall in no event
exceed 80 per cent OF the capital stock Of
the association. 10 any person, association,
company, corporation or firm. Whatever
may have been the fact in regard 10 the
enforcement of this provision at the time
when Mr.. Coffin was deputy comptroller
of the currency, and in a large degree re-
sponsible for its enforcement or non
amendment to this act on June y, 1896, a
most vigorous and determined effort has
been made by me as comptroller of the cur
rency 10 enforce this section Of the bank
act II Is true that in former years II
was a very common practice for some
New \ ork ana other banks in the country
TO make loans IN excess of the 10 per cent
limit, but owing to the steps taken by the
comptrollers office in the last few years
10 enforce this section such violations OF
the law are now very infrequent.
Few Checks OvercertiHed.
The comptroller quoted from the reports
Of the national bank examiner in New York
tending 10 show that violations of section
500. in regard 10 excessive loans. have
been practically eliminated from New York
banking, and then says:
In regard 10 the violations Of section
a3bA, prohibiting the over certifiCation OF
checks, Mr.. Coffin E statements are equally
false or based on wrong information ] am
convinced from the examinations j have
made and the explanations and ASSURANCES
given me by many bankers Of the highest
character and standing that illegal over
certificatiOns of checks are extremely rare.
When they are discovered, in a recent
case, the facts are reported 10 the Depart
ment of Justice and the offenders are in
dicted and brought TO trial. The sections of
the law Mr.. Coffin complains are daily
Ntoini@d are, as q r28uer Of fart. strictly
enforced the same as an the rest of the
law is enforced-quietly ana as a matter
OF duty without any fuss parade and
regardless Of the letters of Mr.. Coffin or
any other sensation monger The proposi-
tiSn that officers Of leading banks OF New
York City are foOlhardy as TO daily
violate the law and render themselves
liable 10 Imprisonment as criminals, as
would be the case if the law We're so vio-
lated, is too absurd for serious belief