New-York tribune., 1908-08-03
CHANGES IN BANK LAWS
Controller of the Cmrencys Recon-
mendations to Monetary COMMISSION.

The National City Bank. in its monthly clrcu-
lar saws regarding the work of the National Mon
etary Commission and suggestions for changes III
bank laws by the Controller of the Currency:
In addition to the important work Of inquirlng ing
nRsS snq d egbe 81 in The Of
fbs g5ted 1ne2 ss2'e5 e tns act epeang With
of inquiring into and reporting similarly ds ~ 70 ,n
deTstoed that the Office Of the Controller OF the
Currency has already brought to to te changes
in the law relating national banks which II pc pc
based upon long experience in the supervision OF
banks in the administration of the oank af f
consideration are the following; .,o,,a1 hanks as
regularly published in newspapers after each s OF
the five annual calls made by the NontrolIer ro
to be made showing the liabilities of officers and
to their e6TTeT GTp Wfh1 his
Whether these items shall be published or not
quired il to be done. The information IS or
course reg , a hui b 1,ya(,s been treated
Sn' INTENDED n foT his use only It
TeUuTe ePopulsory pnbIicson Of these items
the aggregae It has also been 9 oSars e of
a national bank shall be made except upon viii
application shall before a loan be made, be ap-
proved by majority of the 4 board states has
held that it is ultra wires Of national bank TO
national banks are thus prohibited from making
such investments there is nothing TO preVent cor
banks. In number, of cases corporations, suc5
trust companies. for instance, have acquired
the control Of the entire capital stock of national
banks 1t has therefore been suggested thaI
law be passed prohibiting corporations from own
ing stock in national banks except such as Is ao-
Probably the most important part OF the sugges-
tions relate to amendment of the law fixing
limit the amount of commercial paper OF SIN
gle allied interests in which bank may invest
Experience has shown that more bank failures nave
resulted from investments of this kind than Ironl
any other cause 1t is proposed to amend me
law, therefore that investments of the character
indicated
centage of the total loans of a bank, the opJect
being to place limit upon discounts OF commercial
paper eTnanating from single source or from
A great many suggestions have been submitted
of q minor character which are intended to remove
obscurities and antiquities in existing laws. and
intended TO bring about a more practical
admins tration of the bank act.
1t is proposed change the method of compen-
satiug bank examiners, who paid under the
fee system. by putting them on salary and I eXu
permit of direct consolidation OF natlonal
banking institutions At present when TWO dar lnS1,
pIished by the liquidation of one or the other. It
is also considered desira bic that the law should
forwarded to the Controller in duplicate. 1t is the
practice Of the Controllers ofT1ce now TO furnlSh
banks on esfh ca ared wIa fo the Sonfroier and
the duplicate kept in the bank Tor fhe use OF Ihe
bank examiner on MS regular EXAMINE tl9m 49,
II has been found that in the case OF dlsnonestt
bankers the duplicate report kept in the mes ot
the bank has been changed to correspond TO the
actual condition of the bank, so Ihe eHdIIllleI -
unable by comparison to discover discrepancies
Because of the large number of national banks ana
the small clerical force in the office OF the Con
troer of the Currency II has not been practlcanie
for the Controller to furnish his examiners Win
duplicates of reports made up from the originals on
duplicates direct the Controller this difficulty II
hank official or employe can have had an oppor-
tunity 10 change.