New-York tribune., 1908-09-22
RANK EXAMINERS WORK
rontroIer Of Currency Points Out
Needed Reforms.

--,,r,nstou. Sept. 2-Severely arraignng the
soss of bank examiners. declaring that they
NJ called TO discover embezzlements defalcations
dishonesty and frequently failed approximately
s .;,,ate the value Of bank securities. the Con-
O.s.r Of the Currency. Lawrence o. Murray be-
conference of hank examiners representing
" ,r,,re territory east OF Ohio, delivered spir-
~. address pointing out needed reforms.
-. conference which will be followed shortly
s.s,v at Chicago, by conference with the
yr,.e-n examiners. was executive. The examiners
'.rssas the best methods of taking possession Of
-. rssh and other bank securities beginning
.s-oination. 10 prevent counting the same cash
- she substitution of bills and other securities
o,-sr deficiencies. and the addition Of cash from
y o,,,stse. verifcation of bank correspondent
>-,.,oes TO detect shortages or other manipula-
-. ,-e-4fcation OF the individual deposit ledger
"a dissemination OF the financial responsibility of
,s-ss horrowers TO all Of which abuses have
crept in.
controller Murray said:
: .-,s few instances the examiners are not to
,,e- for failing 10 discover dishonesty, but II is
facult TO convince the ruolc OF this TACT SO that
,se5Ilent investigation has shown that the failure
9Steot3ye q @ methods hasty or perfunctory examna-
IONS or absolute Incompetence
,,Ils in regard 10 the value Of every note and
noiissersi found in the bank and the financial re-
Trx-STe an examiner should consult freely with the
aesoers and some OF the directors OF the bank in
esererf 10 is assets. he should by means accept
+Ssfr statements conclusive. but should satisfy
tin1sef hy discreet inquiry through other reliable
sources Of information especially in regard to any
1,aner that he is not familiar with or concerning
,z,hich he has any doubt
n YOU than getting information about the bank for
ng se,,ld increase the value Of such examina ton
., the examiner should select committee of two
- 4Irep members Of the board Of directors. other
sbsn members Of the regular discount committee,
snS have them go the entire bank discounts
with him At each examination during the year
5fTerent set Of directors should make UP this COM
.joe would compel directors to have knowledge
az the affairs of the bank Of which they were di-
discount committee which have sometimes led to
fbe vrecking Of banks. and would unQueStlonaply
the time for such careless methods has gone by
and Il should have gone by long ago, Tor IN the
branch where the responsibilities are as great ana
sometimes rest lightly they do on the snoui-
ders Of the national bank examiners very oIten Zen
the reports submitted here with nothing puI
the bare figures given You should take Iihe 70
write letter discussing fully and frankly the AZ
fairs Of the bank. stated In your report, II the
situation requires such course.
Hereafter If q mans work in one district Is not
up the standard required he viii be ten1pora.ILS
assigned TO another. and if in this second assign
his work still continues 10 De DeioM paL ne
resignation will be asked. When examiner hnds
2 hank unsatisfactory he should not simply report
the facts the Controller and then hurry away ~
smother bank 10 obtain another Zee ne ne sirou ,
Immediate correction, instead OF leaving II 10 tLe
Controller, many examiners oo, 10 @ @uIoei -
10 accomplish through correspondence WIlat Ihe
examiner should endeaVOr TO do on the spot,
There is use Of saying that the present ices
Il Is the only system which Congress has given Us
to work under. and we must do the best we can
with it good man VIII work a pao @ SEScei eteo qtro
successfully. but a poor man ana Door y ~!
are a hopeless combination. II you are unaole %
excuses: simply send in your resignation ana 3ouI
commission for cancellation