The Billings gazette. [volume] (Billings, Mont.) 1896-1919, 1908-02-14
SAYS Il
COFFIN LIES
coMpTRoLLER o. CURRENCY
DENIES coFFIN,s TALES.
ARE ENFORCED

Ridoiey Asserts That Mr.. cofin's Own
Bank e tn Trouble for Breaking the
Law and That Others Have Paid for
Every Violation.
Washington. Feb. Nv. B. Ridg-
ley, comptroAer OF the currency. to-
day made public his reply to the criti-
cism Of his bureau made by John M.
Coffin, formerly deputy comptroller of
the currency. as published in a New
York newspaper last Sunday morning.
Mr.. CONN charged, " said Mr.. Ridg-
ley. that sections 500 and sos of
the revised 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 80 per cent
OF 1t o~bhterated, by a strict enforce
ment Of the above named sections"
Mr.. Ridgley reviews Mr.. Cofln's
connection with the Beaver National
bank Of New York as It's first presi-
dent, and states that, as a result Of
violations Of the law, the bank is now
in voluntary liquidation. MI. Ridgley
goes On to say:
Not only the charges, but the state
ments made by MI. Coffin IN the arti-
Gle referred to, are really f~abrications
made without any knowledge OF the
facts, and are Intentionally false and
untrue.
Section 5000 Is the section Of the
banking act which prohibits any a.
tiona1 bank from loaning an amount
equal to more than one-tenth Of the
capital stock Of such association. &C
tually paid and unimpaired, and one
tenth Of Its unimpaired surplus fund,
provided, however, that the total OF
such liabilities shall In no event ex.
coed 80 per cent Of the capital stock
Of the association, company. corpora
ton or firm.
Has Been Enforced.
Whatever may have been the fact
In regard to the enforcement OF this
provision at the time when Mr.. CONN
was deputy comptroller Of the our
rency, and in a large degree RESPONSE
BILE for its enforcement OF non-enforce
ment, since the passage Of the amend
ment to this act, on June 81. 1905.
q most vigorous and determined ef-
tort has been made By me IS comp
troller OF the currency to enforce this
section OF the bank act. It Is true
that In former years it was q very
common practice for some New York
and other banks in the country TO
make loans IN excess of the 10 per
cent limit. But, owing to the steps
taken by the comptroller's office IN
the last few years to enforce this
session, such violations OF the law are
not very frequent"
The comptroller quoted from the
reports Of national bank examiners In
New York tending to show that viola-
tons Of section 500, IN regard to the
excessive loans, have Ieen practically
eliminated from New York banks. and
then says:
overcsrtineation Discouraged.
TN regard 10 the violations Of sec
tion sos. prohibiting the overcertih
cation 81 checks. MI. Comn's state
ments are equally false or based on
wrong information. I am convinced
from the examinations I have made
and the explanations and assurances
given me by many bankers OF the high
est character and standing, that u
legal CONGRATULATIONS Of checks are
extremely rare. When they are dis
covered, as IN q recent case, the facts
are reported TO the department ct
justice and the offenders are indicted
and brought to trial.
"The sections OF the law Nj. Conn
complains are daily violated are. as 2
/ matter Of fact, strictly enforced the
same as all the rest Of the law-quiet-
" and as a matter Of duty, without
any fuss OF parade and regardless Of
the letters Of Mr.. Comm or any other
sensation monger. The proposition
that oflcera Of leading banks Of New
York city are so foolhardy as to daily
violate the law and render themselves
liable to imprisonment as criminals.
spiRiTuALisTs BUY ISLAND.
Wi, Have Place for an institution q