The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1908-09-21

E'orty-Oue examiners Of national banks
/ responded 70 the order Of Comptroller
Of the Currency Lawrence o. Murray
and attended a conference at the
/ Treasury today.
After inroductiOns, the COMPTROLLER
I announced his views on the duties os
bank examiners the Importance Of their
position, and the absolute necessity for
I an Improvement in their methods. 10 the
end that thOrOUghness and a higher
standard OF work might be attained
Mr.. Murray talked very plainly 20 his
| sUbOrdinates, laying down sCme new
I principles, and letting It be understood
I that while he was a comparatively re-
4 cent appointee 70 the position OF Comp
I trOIler OF the Currency. he was not
/ ignorant Of financial methods. He said
/ he was well Informed OF the tendency.
/ on the part OF many examiners TO seek
I first the fees. making the truth as 70 the
! condition OF the banks assigned for ex-
I animation a secondary consideration
( If. said the Comptroller, getting
/ fees from the bank is more important
I to you than getting information about
/ the bank. then resign at once"
! He also distinctly announced that "a
I higher standard Of efficiency was ab-
/ solUtely necessary and decried excuses.
/ regarding inability 70 ind true cOndt-
| tions OF a bank preferring resignation
| TO excuses.
Murray Hits Out.
/ Among other things, Mr.. Murray said:
I say 10 you emphaucally this morn
7 ing that your work must be improved.
I Embezzlements have failed Of dlscov-
]
I been concealed from you, and in many
/ cases you have failed 10 correctly or
/ even approximately estimate the value
Of the paper and securities held by the
| bank. There are in this office instances
I where an examiner has failed 10 dis
! cover. although he made several sue
/ Cessive examinations. various shortages
/ or other criminal wrongdoing in the
| bank
1 In some few instances the examiners
are not 10 blame for failing 70 discover
/ dishonesty, but IL IS difficult 70 con-
! vince the public Of this fact so that the
/ effect is Just the same But in many
/ instances subsequent investigation has
/ shown that the failure Of the examiner
IN this respect was due wholly 10 de1ec-
] tive methods hasty or perfunctOry eZ-
/ aminatiOns, OF absolute incOmpetency.
Must Be Careful.
I 0LG OF AAAE ALAlsA EseEAkAaA features or
I an examination is the correct valuation
I OF the assets. In this respect the ex-
| eminer cannot be too careful and pains
taking. for upon this estimate. the
Comptroller must rely wholly 10 de-
termine the sOlvency OF an association
/ or the extent OF its losses. II any havs
been sustained. The examiner should
IN every instance inform himself. as
fully as possible. in regard to the value
of every note and collateral found in the
bank. and the financial responsibility
/ Of all makers and indorsers Of paper.
/ Some examiners rest satisfied with the
statements or the ordcers IN regard 70
the worth OF paper. collateral or other
securities and the financial response
bility Of borrowers and their incorserSs
| and do not take time and trouble 10
/ i,.f0rrn themselves otherwise While an
| examiner should consult freely with the
! officers and some Of the directors Of the
bank in respect 70 its assets. he should
by no means accept their statements
] as conclusive, but should satisfy him
self by discreet inquiry through other
| reliable sources OF Information. especi-
ally in regard to any paper that he 8
not familiar with or concerning which
he has any doubt.
Work Too HuTIiedly.
a great many reports received from
examiners indicate hurried work There
| Is TOO mucn QlSDOSlAOD on LD6 part OF
examiners 20 increase their cOmpenss-
ton at the expense Of the thorOughness
and reliability Of their work.
If getting fees from the bank is
more important TO you than getting in
formation about the bank for me. then
/ resign At once
/ An examiner should remain in q bank
/ until he is thoroughly satisfied that he
! understands its condition, inSCead OF
measuring the amount Of time devoted
I to an examination by the amount OF
( the fee that he viii receive therefor
/ Examiners, as rule. know what their
duty IS and II they perform that duty
/ thew viii know what the condition OF
| the bank is. and can report Il In detail
1T would increase the value Of such
examination II the examiner should call
1 upon a committee OF two or three mem
bers Of the board Of directors and have
them 20 over the entire discounts OF the
bank with him. Such a committee should
be selected by the bank examiner him
self and should consist Of members OF
the board Of directors other than mem
lbers OF the regular discount committee.
and al each examination during the year
different sct - directors should make