The Washington times., 1908-09-21

up this committee; but this is rarely. II
given year, large number. and pos
sIbly every member OF the board of di-
rectors. would be compelled 20 inspect
the loans and discounts of the bank,
and pass judgment upon their value
and character.
Would Inform Directors.
This practice would compel directors
TO have a knowledge Of the affairs
Of the banks OF which they were oi-
rectors; would prevent improper prac-
tices on the part Of the members Of
the discount committee, which have
sometimes led to the wrecking Of banks,
and would unQuesuonably be an aid to
the examiner.
You will be surprised TO learn that
some examiners who have been IN the
service some time have actually talled
TO read the book OF instructions which
Is furnished by this office, and not only
that, but they have failed TO read the
printed matter on the blank forms on
which they make their reports, and As
consequence omit to furnish the es-
sential Information which these speci1c
instructions call for. Frequently letters
are received from examiners making in
Quiries on certain points, and IN most
cases the information in detail Is gwen
in plain print on the blanks Whlch Ihey
use In making the reports. Can you
imagine anything more ridiculous than
that?
has gone by, and II should have gone
by long ago, for in the Government serv-
ice l do not know Of a single branch
where the responsibilities are as great
and sometimes rest SO lightly as they
do on the shoulders Of national bank
examiners.
Personal Equation Counts.
VERY often the reports are sub
,,,f++a,4 bo--o NTH vo+l1fncr hrrt he F,a-a
figures given. In all affairs OF life, the
personal equation is important, and you
should take time TO write a letter dis
cussing fully and frankly the affairs
of the bank as stated in your report,
If the situation requires such course.
You are on the ground; you are in a
position to find out exactly what the
situation is; and you should find IL out
and give the Comptroller the informa-
In. You should furnish a full deSCTip-
tion of tho larger and more important
loans and discounts and the nature and
value OF collateral securing them. and
not rest satisfied by simply stating as
many of the reports do. Amply Sc
cured
What I say this morning is directed
10 those of you who are not up TO that
standard, and are making no effort 10
reach II.
Must Be Ready to Change.
while 1 am Comptroller, the exam
iners must be ready TO accept an as
signment to any place III the United
States. Hereafter there will be no such
thing as an examiner being assigned to
a particular district and remaining
there indefinitely. unless his work jus
tifieS such action. If a mans work IN
one district is not up to the standard
required, ne will be temporarily as
signed TO another, and II IN this second
assignment his work still continues 10
be below par his resignation Will be
asked.
when an examiner finds a bank IN
an unsatisfactory condition, ne should
not deem his duty discharged by simply
reporting the facts TO the Comptroller,
and tnen hurrying away 70 another
bank 70 obtain another fee. He should
convene the board OF directors, FULLY eX-
plain to them the situation and insist
upon an immediate correction 10 the
fullest possible extent of the unsatis-
factory conditions complained of, in
stead Of leaving il TO the Comptroller
as many examiners do, TO undertake "a
accomplish through the slow process of
correspondence what the examiner
should endeaVOT to do on the spot The
best examiners report what they have
accomplished in this connection and not
what should be done
The Comptroller then assigned the
subjects for the days discussion, and
the examiners were escorted TO TIE
Washington Bank Clerks assembly hall
on i street where they discussed tins
topics. The choice of subjects indicates
that Comptroller Murray IS familiar
with the methods OF defaulting cash
fers. thieving tellers, and dishonest banl
presidents. in covering their tracks from
the eyes of the bank examiner
The conference will continue al
week, with different subjects assigned
for each days consideration.
Later Comptroller Murray viii meet
Western bankers at Chicago and by the
same methods Of discussion, endeavOi
10 raise the efficiency Of the Eastern
force.
In his remarks today, the Comptrollel
gave notice to examiners that they are
liable to be moved from one section OF
the country 70 another and that a will
ingness TO meet such migratory orders
was necessary for continuation in the