The free lance. (Fredericksburg, Va.) 1885-1926, 1908-09-24
BANK EXAMINERS
Get A SCORING
Comptroller OF Currency Says
They Must Improve.
HAVE FAILED TO CHECK FRAUDS

Tells Them u Getting Fees From a
Bank Is More Important to Them
Than Getting Information. They
Should ResiOn-Must Thoroughly
Examine Collateral and Learn Its
Nalue-No More PerfunctOry Exam.
nations VIII Be Tolerated BY the
Department
Washington. Sept e2.-Seyerely a..
raigniug the methods OF bank exam
inerS. declaring that they have failvI
70 discover embezziements. defaica
lions and dishonesty. aud frequently
failed 10 approximately estimate the
value of bank securities. Comptroller
OF the Currency Lawrence q. Murray
before conference OF bank examiners
representing the entire territory east
Of Ohio. delivered a spirited address
pointing out needed reforms.
The examiners discussed the brs,
methods OF taking possession OF the
cash and other bank securities ON bc
ginning examination. TO prevent
counting the same cash twice The
substitution OF bills and other securi
ties TO cover deficiencies and the add
ton OF cash from the outside. vc~in
cation OF bank or correspondent bal
anccs o. detect shortages. or other
manipulations. verincation OF the I'm
dividUal deposit ledger and dctermf
nation ~ the financial responsibility
or large borrowers, as 60 all OF which
abuses have crcpt in
Comptroller Murray said. IN some.
few instances the examiners are MOI.
10 blame Tor failing 20 discover dis
honesty but IL is difficult TO convince
the public of this fact so that the cf
feet is just the same But I'm many I'm.
stances subsequent Investigation has
shown that the failure of the exam
liner in this respect was due wholly
to defective methods. hasty or per
iunctory examinations. or abso'u., in
competency
The examiner should in every IN
stance inform himself in regard tol
the value OF every note and collateral
found in the bank. and the financial
responsibility OF all makers and on
dorsers Of paper. While an examine
should consult freely with the officers
and some OF the directors OF the bank
IN respect 20 its assets. he should bv
no means accept their statements as
conclusive. but should satisfy him
self by discreet inquiry through other
reliable sources Of information. esue-
cial.y ia regard 20 any paper that mel
is not familiar with or concerning
which he has any doubt.
IF gettinc fees from tho bank is more
important than getting information
about the bank for me. then resign al
once
The time FOR careless methods has
gone by. and IL should have gone hy
long ago. for in the government ser.
vice do not know OF single branch
where the possibilities are as
great and sometimes rest so lightly
as they DO on the shoulders OF tho ma !
tonal bank examiners. Very often
the reports are submitted here with
nothing but the bare figures given
You should take time 20 write letter
discussing fully and frankly the az |
fairs Of the bank as stated in your re- /
port II the situation requires such
course.
Hereafter, II a mans work in one
district is not up 20 the standard r.
quired. he win be temporarily assign
cd 20 another and II in this second
assignment his work still continues TO |
be below par. his resignation will be
asked"