The Birmingham age-herald., 1908-02-13
R|DGELY ANSWERS
 STRONG CHARGES
Says Mir. Coffin Makes False
 Statement
BANKS OBSERVE THE LAWS
Comptroller Says That Mr. Coffin is Wrong in Declaring That Ma tlona Banks Violate the
 Law Constantly

Washington, February 12.-W. B. Ridge ly, comptroller of the currency, today made public his reply to the criticism of his bureau, made by John M. Coffin, for merly deputy collector of the currency, as published in a New York newspaper last Sunday morning.
 MT Coffin charged" says Mr. Ridgely, that sections 52O0 and 520S of the re- vised statutes of the United States are daily violated by every large national bank, and makes the statement that stock gambling could be suppressed or at least eighty per cent obligated by strict en- forcement of the above named sections"
 MT. Ridgely reviews MT. Coffins con- necton with the Beaver National bank of New York as it's first president and law, the bank is now in voluntary liqui- dation. MT. Ridgely goes on to say:
 Not only the charges, but the state ments made by MT Coffin in the article referred to are really made without any knowledge of the facts, and are inten- tionally false and untrue. Section 5200 is the section of the bank act which prohibits any national bank from loaning an amount equal to more than one-tenth of the capital stock of such association, actually paid and unimpaired and one tenth of it's unimpaired surplus fund (pro- vided, however, that the total of such liabilities shall in no event exceed thirty per cent of the capital stock of the asso- ciation) to any person, association, com pany, corporation, or firm. Whatever may have been the fact in regard to the en- forcement of this provision at the time when MT. Coffin was deputy comptroller of the currency, and In a large degree re- sponsible for it's enforcement or non-en- forcement, since the passage of the amendment to this act on June 22, 19O6 a most vigorous and determined effort has been made by me as comptroller of the currency to enforce this section of the bank act It is true that in former years 1t was very common practice for some New York and other banks in the country to make loans in excess of the ten per cent limit, but owing to the steps taken by the comptroller's office Tn the last few years to enforce this section, such viola tions of the law are now very infre- quent."
 The comptroller quoted from the re- ports of national bank examiners in New York tending to show that violations of section 5200, in regard to excess loans have been practically eliminated from New York banking, and then says
 Tn regard to the violations of section 528, prohibiting the over-certification of checks, MT. Coffin's statements are equal- ly false or based on wrong information. l am convinced from the examinations I have made and the explanations and as- surances given me by many bankers of the highest character and standing that illegal, that over-certification of checks are extremely rare. When they are dis covered, as in a recent case, the facts are reported to the department of justice and the offenders are indicted and brought to trial.
 The sections of the law, MT. Coffin complains, are daily violated are, as 4 matter of fact, strictly enforced, the same as all the rest of the law Is enforc- ed-quietly, and as a matter of duty. with out any fuss or paraoe and regardless of the letters of MT. Coffin or any ether sensation-monger. The proposition that the officers of the leading banks of New York city are so foolhardy as to daily violate the law and render themselves liable to imprisonment as criminals. as would be the case if the laws were So violated, Is too absurd for serious be- lief
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